1. Stock name: Persistent Systems Ltd.

Pattern: Cup and handle pattern

Time frame: Weekly

Observation:

Over the period spanning from April 2020 to January 2022, the stock displayed a substantial upward trend. However, from January 2022 to August 2023, it underwent a consolidation phase, shaping a cup and handle pattern on its weekly charts. Toward the conclusion of August 2023, the stock experienced a breakout, notably accompanied by higher-than-average trading volumes. Following this breakout, the stock has sustained its upward trajectory. Based on technical analysis, if the stock can persist with the same momentum it may continue its ascent.

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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: Sumitomo Chemical India Ltd.

Pattern: Head and shoulders pattern

Time frame: Weekly

Observation:

At the beginning of 2020, the stock made its debut on the NSE. From the outset, it embarked on an upward trajectory, maintaining this trend until September 2022. However, between May 2021 and October 2023, the stock exhibited a head and shoulder pattern on its weekly charts. Then, in October 2023, the stock broke out of this pattern, accompanied by above-average trading volume. The stock has continued to follow this breakout direction into the first week of November. Furthermore, both MACD and RSI indicators are indicating a potential downward movement. In light of this technical analysis, if the stock can sustain its current momentum, it may experience further declines.

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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.

News for the day:

1) Elon Musk's Starlink is poised to obtain a license for satellite communication operations in India, as the government is content with its responses regarding data storage and transfer regulations. This license will enable Starlink, a subsidiary of SpaceX, to provide satellite broadband, voice, and messaging services to both individuals and organizations, making it the third company to secure such a license after OneWeb and Reliance Jio's satcom arm. Amazon has also applied for a license, pending government consideration. The Indian space economy is projected to reach $13 billion by 2025, growing at a CAGR of 6%.

2) The US is investing $553 million in a port terminal in Sri Lanka being developed by Indian billionaire Gautam Adani, aiming to counter China's influence in the region. This marks the largest infrastructure investment by the US government's International Development Finance Corp. in Asia and is seen as an effort to reduce China's sway in Sri Lanka, where it had invested significantly in port and highway projects. The investment seeks to bolster Sri Lanka's economic growth and enhance regional economic integration, particularly with India.

3) The Competition Commission of India (CCI) has approved Bharti Group's acquisition of a 49% stake in Bharti AXA Life Insurance. The deal involves the purchase of shares from AXA India Holdings, enabling Bharti Life Ventures Pvt Ltd to own 100% of the life insurance company.