1. Stock name: Motherson Sumi Wiring India Ltd.

Pattern: Cup and handle pattern and retest

Time frame: Daily

Observation:

Listed on the NSE on March 28, 2022, the stock has predominantly exhibited a sideways trend since its listing. Notably, from December 2022 to August 2023, it has established a bullish cup and handle pattern on its daily chart. A significant breakout from this pattern occurred on September 1, 2023, marked by substantial trading volumes. Presently, the stock is undergoing a retest of this breakout level. According to technical analysis, if it successfully rebounds during this retesting phase, it may show further upward movement.

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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: United Breweries Ltd.

Pattern: Cup and handle pattern

Time frame: Daily

Observation:

Since December 14, 2022, the stock has exhibited a downward trend. However, between April 23 and September 23, it showed relative stability with sideways movement. Notably, during this period, a bullish cup and handle pattern materialized on the daily chart. On September 7, 2023, there was a significant breakout from this pattern, accompanied by substantial trading volume. According to technical analysis, if the stock manages to sustain this breakout and maintain its positive price momentum, it may continue to ascend in an 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) IT hardware imports witnessed a significant surge in August following the DGFT's announcement of new licensing requirements, with concerns looming over potential supply disruptions and price hikes when the restrictions come into effect on November 1.

2) Exide Industries has invested over Rs 100 crore in its subsidiary Exide Energy Solutions, focused on advanced chemistry battery cells manufacturing. This investment was made through a rights-based subscription and doesn't alter the company's shareholding percentage in EESL.

3) ONGC plans to inject around Rs 15,000 crore into ONGC Petro-additions Ltd (OPaL) as part of a financial restructuring effort, leading to GAIL losing its stake in the petrochemical company. ONGC, currently holding a 49.36% stake in OPaL, aims to increase its ownership to about 95% through share warrant conversion, debenture buybacks, and additional equity investments, addressing OPaL's financial troubles and making it a subsidiary of ONGC.