Technical Analysis of MRPL & GLAXO

1. Stock name: Mangalore Refinery & Petrochemicals Ltd.

Pattern: Double bottom pattern

Time frame: Monthly

Observation:

Starting in November 2017, the stock embarked on a downtrend that persisted until April 2020. As the market began recovering from the COVID-19 lows, the stock exhibited consolidation and moved in a sideways price pattern. Remarkably, we can observe a bullish double bottom pattern on its monthly charts, and in August 2023, a breakout from this pattern materialized. As per technical analysis, if the stock maintains this momentum, it may move in further upward direction.

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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: Glaxosmithkline Pharmaceuticals Ltd.

Pattern: Cup and handle pattern

Time frame: Daily

Observation:

Since December 2021, the stock has experienced a downward trend upto Feb 2023. The prices began consolidating from there, leading to a sideways movement. Notably, from September 2022 until September 5th, 2023, the stock formed a bullish cup and handle pattern on its daily charts, and a breakout occurred on September 5th. The Relative Strength Index (RSI) for the stock is approximately 65, indicating robust price strength. Additionally, the MACD line recently crossed above its baseline. According to technical analysis, if this momentum is sustained, the stock 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) Dr. Reddy's has responded to speculation about a joint bid with Bain Capital for Cipla, stating that it won't comment on market rumours regarding this matter. This clarification follows ET reports of Bain Capital approaching Dr. Reddy's to potentially collaborate on a bid for Cipla's promoters' stake.

2) SBI Chairman Dinesh Kumar Khara revealed that the Yono app generates Rs 100 crore in fee income every quarter, primarily by selling products from SBI's subsidiaries, and it accounts for 85% of the bank's banking transactions. Additionally, Yono has facilitated the sale of Rs 21,000 crore in pre-approved personal loans over the past two fiscal years.

3) The Indian Ministry of Food Processing Industries is planning to launch a second Production-Linked Incentive (PLI) scheme, with an allocation of Rs 1,000 crore, to support the processing of millet-based foods. This decision follows the full subscription and positive response received in the first phase, which garnered applications from 30 units.