Technical Analysis of ITI & EIHOTEL

1. Stock name: Indian Telephone Industries Ltd.

Pattern: Cup and handle pattern and retest

Time frame: Daily

Observation:

After rebounding from the COVID-related market downturn in 2020, the stock's recovery continued until August 2020. Subsequently, it experienced a gradual decline. The stock has seen consolidation around December 2022 and moved in a sideways pattern from there. During this phase, it formed a bullish cup and handle pattern on its daily charts. Notably, there was a significant breakout from this pattern on August 7, 2023, accompanied by substantial trading volumes. Currently, the stock is retesting this breakout level. As per technical analysis, if the stock is able to maintain and rebound from the breakout level, it may move further upward.

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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: EIH Ltd.

Pattern: Flag and pole pattern

Time frame: Weekly

Observation:

Following the post-COVID market decline, the stock underwent a recovery. From last week of March 2023, a sharp upward movement was observed, followed by a consolidation phase starting in June 2023. During this consolidation, the stock exhibited a flag and pole pattern on its weekly charts. Notably, the stock recently broke out from this pattern with substantial trading volumes, opening above the pattern. The stock's relative strength index (RSI) sits at approximately 65, indicating robust price movement. According to technical analysis, if the stock is successful in maintaining this momentum 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.

News for the day:

1) Jio Financial Services debuted on the BSE and NSE at Rs 265 and Rs 262 per share, respectively, after its recent demerger from Reliance Industries. The listing closely matched the exchange-derived price of Rs 261.85 on the demerger record date of July 20. This marked the first listing from Mukesh Ambani’s group in the last 20 years, with JFSL's market capitalization of around Rs 1.68 lakh crore making it India's 33rd largest listed company, surpassing companies like HDFC Life Insurance, SBI Life, and IndusInd Bank.

2) V.I.P. Industries Ltd, India's top luggage manufacturer, has released the resignation letter of Managing Director Anindya Dutta due to personal reasons. His resignation will be effective from November 13, 2023. Neetu Kashiramka will succeed him as the new Managing Director and Chief Financial Officer starting November 14, 2023.

3) HDFC Capital and TVS Emerald's joint venture for plotted developments is in talks to secure three land deals spanning 45 acres in Chennai and Bengaluru. These acquisitions will establish seed assets for their platform focusing on plotted and low-rise developments in South India's property markets. The collaboration involves a Rs 1,000-crore investment.