Technical Analysis of NBCC & MCX

1. Stock name: NBCC (India) Ltd.

Pattern: Double bottom pattern and retest

Time frame: Weekly

Observation:

Since November 2017, the stock has been on a downward trajectory. Between July 2019 and August 2023, it exhibited sideways movement, resulting in the formation of a bullish double bottom pattern on its weekly chart. A breakout candle emerged during the first week of September 2023, accompanied by substantial trading volume. Currently, the stock is in the midst of retesting this breakout level, and its RSI stands at approximately 65, indicating strength in its price movement. According to technical analysis, if the stock manages to maintain this breakout level and successfully rebounds from the ongoing retest, it may embark on an upward trajectory.

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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: Multi Commodity Exchange of India Ltd.

Pattern: Double bottom pattern and retest

Time frame: Weekly

Observation:

Since October 2021, the stock has been on a downward trend, followed by a period of stabilization around February 2022, transitioning into a sideways movement. During this time frame, a bullish double bottom pattern formed on its weekly charts. A significant breakout candle emerged during the last week of August 2023, accompanied by substantial trading volume. Presently, the stock is in the process of retesting this breakout level, and its RSI sits at around 60, indicating strength in its price movement. According to technical analysis, if the stock can maintain this breakout level and recover from the ongoing retest, it may embark on 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) Maruti and Hyundai anticipate a decrease in diesel passenger vehicle sales due to stricter emission regulations, coinciding with discussions about potential additional taxes on diesel vehicles to reduce emissions, although no such proposal is currently under government consideration.

2) Tata Electronics, a recent entrant in the electronics manufacturing services sector, reported manufacturing mobile components worth Rs 463 crore in FY23. The company has introduced new technologies to India, building indigenous capabilities around these technologies, to compete with established players like Foxconn and Dixon.

3) Hindalco Industries is set to invest approximately ₹2,000 crore in a partnership with Italian firm Metra SpA, known for its expertise in aluminum extrusion, to manufacture lightweight and eco-friendly railway coaches for projects like Vande Bharat, aiming to enhance speed and reduce carbon emissions. This aligns with Hindalco's strategy to strengthen its aluminum capabilities across various applications, including commercial vehicles, electric vehicles, freight wagons, and passenger trains.