Technical Analysis of HEG & TTML

1. Stock name: H.E.G. Ltd.

Pattern: Double bottom pattern

Time frame: Weekly

Observation:

From February 2019 to April 2024, the stock exhibited a double bottom formation on its weekly chart. By the end of April 2024, it confirmed a breakout from this pattern, backed by notable trading volume and a bullish MACD indicator. Presently, the stock's RSI suggests it's in the overbought territory, hinting at a potential retest of the breakout level. Technical analysis indicates that if the current momentum of the breakout is sustained, the stock may continue its upward trajectory.

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Disclaimer: This analysis is purely for educational purpose and does not contain any recommendation. Please consult your financial advisor before taking any financial decision.

2. Stock name: Tata Teleservices (Maharashtra) Ltd.

Pattern: Double bottom pattern and retest

Time frame: Daily

Observation:

Since February 2019, the stock has experienced a downward trend, but recently stabilized and formed a double bottom pattern on its daily chart between March and April 2024. On April 23, 2024, the stock broke out from this pattern, backed by above-average trading volume and a bullish MACD indicator. Presently, the stock has retraced to retest the breakout level, with the RSI cooling off to a favourable level. According to technical analysis, if the stock rebounds from this retest, it may continue its upward trajectory.

You may add this to your watch list to understand further price action.

Disclaimer: This analysis is purely for educational purpose and does not contain any recommendation. Please consult your financial advisor before taking any financial decision.

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News for the day:

1) IndiGo orders 30 Airbus A350-900s, with potential for 70 more, marking a strategic shift to dominate long-haul travel in the region. With capabilities for 16-17 hour flights, the move targets North American routes. This transition aligns with IndiGo's aim to evolve from a short-haul carrier, signaling a significant strategic move in the aviation industry.

2) Nestle India and Dr. Reddy's have formed a joint venture to introduce nutraceutical brands in India. Combining Nestle's health solutions and Dr. Reddy's commercial capabilities, the venture aims to enhance consumer access and affordability. Select brands from both companies will be licensed to the JV, headquartered in Hyderabad, and set to launch in Q2 of FY25. The partnership seeks to improve quality of life by leveraging their strengths in retail and distribution.

3) Tata Steel confirms £1.25 billion investment with the UK government for an Electric Arc Furnace in Port Talbot and announces the closure of Blast Furnaces No. 4 and No. 5 by June and September respectively. This move aims to transform Britain’s largest steel plant, secure long-term viability. The company plans to support affected employees and invest in regeneration and job creation schemes.