Technical Analysis of MARUTI SUZUKI & MARICO

1. Stock name: Maruti Suzuki India Ltd.

Pattern: Cup and handle pattern

Time frame: Weekly

Observation:

Beginning in December 2017, the stock exhibited a predominantly sideways trend, eventually shaping a bullish cup and handle pattern on its weekly chart spanning from December 2017 to August 2023. A breakout from this pattern emerged during the final week of August 2023, coinciding with substantial trading volume. Notably, the stock boasts an RSI reading of approximately 65, indicative of robust price strength, and has recently witnessed a MACD crossover above the baseline. According to technical analysis, the stock may ascend further in an upward trajectory if it can sustain its current momentum.

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.

--------------------------------------------------

2. Stock name: Marico Ltd.

Pattern: Flag and pole pattern

Time frame: Monthly

Observation:

Following the initial COVID market decline, the stock rebounded along with the broader market. We can observe a notable upward trend from March 2020 to October 2021. Subsequently, it entered a period of consolidation, adopting a sideways trajectory. This has led to the formation of a flag and pole pattern on its monthly chart. A breakout from this pattern materialized in August 2023, accompanied by robust trading volume. Presently, the stock maintains an upward trajectory, supported by an RSI around 65, indicating strong price momentum, and a recent MACD crossover, signifying bullish sentiment. As per technical analysis, if the stock maintains its breakout level and sustains its 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) Vedanta has established a new subsidiary, Sesa Iron and Steel Limited, in Goa to manage its iron and steel operations and growth projects, according to regulatory filings. This development follows Vedanta Resources regaining ownership and operational control of its Konkola Copper Mines in Zambia after a dispute with the Zambian government, committing to invest over $1 billion in the mines to bolster copper production.

2) Hindustan Petroleum Corp (HPCL) aims to transform into an "energy" company, diversifying away from its reliance on refining and marketing, according to Chairman Pushp Kumar Joshi. HPCL is planning a growth strategy to expand its revenue streams and reduce dependency on its existing business.

3) REC Ltd has signed a $100 million foreign currency term loan agreement with EXIM Bank as part of its market borrowing program for 2023-24. The funds will be used to refinance loans in the power, infrastructure, and logistics sectors, with a focus on renewable energy projects, aiming to increase the share of renewables in its loan portfolio to 25-30% by FY30 from the current 6.8%.