1. Stock name: IIFL Finance Ltd.

Pattern: Cup and handle pattern

Time frame: Monthly

Observation:

Starting from around 2014, the stock underwent an upward trend that persisted until approximately mid-2018. Subsequent to this, it experienced a decline until after the COVID-19 period. The stock underwent a significant recovery and resumed an upward trajectory from November 2020. During this sequence, a bullish cup and handle pattern took shape on the stock's monthly charts. Notably, a breakout from this pattern occurred in July 2023, accompanied by average trading volumes. The RSI of the stock is around 70. According to technical analysis, if the stock is able to hold this momentum, it may move further upwards.

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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.

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2. Stock name: IDBI Bank Ltd.

Pattern: Double bottom pattern and retest

Time frame: Weekly

Observation:

The stock entered a downtrend in November 2010, which persisted until the post-COVID period, after which there was a slight stabilization. Notably, a bullish double bottom pattern emerged on the weekly chart. This pattern was subsequently confirmed by a breakout accompanied by strong trading volumes in the first week of August 2023. At present, the stock is undergoing a retest of this breakout level and has fallen slightly below the breakout line. Relative Strength Index (RSI) of the stock is at approximately 65, indicating favorable price strength. As per technical analysis, if the stock successfully recovers from this retest along with robust price momentum, it may move further in an upward direction.

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.

News for the day:

1) Amidst speculation of a partnership with Adidas, Bata India has affirmed its commitment to "explore opportunities for strategic alliances." This clarification follows reports of discussions with Adidas for an Indian market partnership. Despite a 388-point drop in the BSE Sensex during Thursday's trading, Bata India's shares closed 5.3% higher at Rs 1,733.75 apiece, reflecting the market's response to the news.

2) In the recent reshuffling of NSE indices, Nykaa and HDFC AMC are among the 5 stocks that will exit the Nifty Next50. Indus Towers, Page Industries, and ACC were also removed, while PNB, Shriram Finance, Trent, TVS Motor, and Zydus Life were added to the index. These changes, authorized by NSE Indices' index maintenance sub-committee, will take effect on September 29, with no modifications made to the primary Nifty benchmark.

3) PNB and Tata Motors Finance have joined forces for streamlined financing of commercial vehicles, benefiting MSMEs and fleet operators. This co-sourcing collaboration aims to expand business across regions, offering simple financing solutions. The memorandum of understanding was signed by PNB's Managing Director Atul Kumar Goel and Tata Motors Finance Solutions' MD Samrat Gupta.