Technical Analysis of NMDC & NLC INDIA

1. Stock name: NMDC Ltd.

Pattern: Inverse head and shoulder pattern

Time frame: Weekly

Observation:

Beginning in 2010, the stock has seen a continuous downward trajectory but later found stability. Notably, between August 2021 and August 2023, it displayed a bullish inverse head and shoulders pattern on its weekly chart, with a breakout candle in the final week of August 2023. This breakout was supported by substantial trading volume. In the subsequent two weeks of September, the stock continued to ascend. According to technical analysis, the stock may extend its upward trajectory if it sustains this momentum.

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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: NLC India Ltd.

Pattern: Double bottom pattern

Time frame: Daily

Observation:

Since 2008, the stock has experienced a consistent downward trajectory. Notably, between 2011 and 2023, it displayed a bullish double bottom pattern on its monthly chart. A significant breakout candle emerged in July 2023, accompanied by average trading volumes. In the subsequent months of August and September 2023, the stock sustained this breakout momentum, exhibiting an upward trend. Based on technical analysis, the stock may extend its upward trajectory if it maintains this 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.

News for the day:

1) Maruti Suzuki has partnered with Indian Bank to provide financing solutions to its dealerships, benefiting over 4,000 outlets. This collaboration aims to enhance dealer relationships and the customer car-buying experience while offering favorable working capital options. Indian Bank's supply-chain finance will support Maruti Suzuki dealers' business growth.

2) Reliance-owned Hamleys debuts its Milan store through a partnership with Italian franchisee GIOCHI PREZIOSI S.P.A (GP), with plans to open a flagship store in Rome. The iconic toy retailer, part of Reliance Brands since 2019, aims to become a Milan landmark and currently operates in 15 countries with 191 stores globally.

3) The Securities Appellate Tribunal (SAT) has raised concerns about the credibility of the Securities and Exchange Board of India (SEBI) in completing its investigation into alleged fund misappropriation by Zee Entertainment Enterprises within a stipulated time frame. SAT questioned SEBI's track record of extending investigation periods and lack of credibility in timely completion. This development comes as Zee Entertainment Enterprises challenges SEBI's order barring its key executives from holding managerial positions, with the matter set for further hearings on September 27. The Zee-Sony merger, approved by the National Company Law Tribunal (NCLT), remains a key focus amid these proceedings.