Technical Analysis of PNB & COROMANDEL

1. Stock name: Punjab National Bank

Pattern: Rounding bottom pattern

Time frame: Monthly

Observation:

The stock has seen a prolonged downward trajectory before stabilizing and recently showing signs of an upward trend. By January 2024, it had surpassed its 2019 levels, shaping a rounding bottom pattern spanning from April 2019 to January 2024. The breakout in 2024 was accompanied by above average trading volume, and post-breakout, the stock maintained its upward trajectory. Presently, the stock's RSI indicates overbought conditions, potentially signalling a retest. According to technical analysis, sustained breakout momentum may drive the stock further upward.

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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.

2. Stock name: Coromandel International Ltd.

Pattern: Double bottom pattern

Time frame: Daily

Observation:

Since December 2023, the stock has experienced a downward trend. Subsequently, it consolidated and established a double bottom pattern on its daily chart. On April 2, 2024, the stock broke out from this pattern, backed by a positive MACD signal. Following the breakout, the stock has exhibited upward momentum, accompanied by high RSI levels. According to technical analysis, if the current momentum persists, further upward movement may be anticipated.

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.

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News for the day:

1) HUL considers separating its ice-cream business for potential sale, mirroring Unilever's strategy. Amid competition from Magnum, Amul, and Kwality, unique manufacturing and distribution approaches are crucial. The move aims to align with Unilever's focus on improving gross margins in similar segments.

2) Bajaj Auto aims to revolutionize the entry-level motorcycle market by introducing the world's first CNG-run motorcycle, with plans to slash monthly fuel costs in half. Priced at a premium, these bi-fuel motorcycles will challenge the dominance of Hero MotoCorp. Leveraging its 8% share in the mileage-conscious entry-level segment and expertise in CNG three-wheelers, Bajaj aligns with government carbon reduction goals. Initial launch in Maharashtra and Gujarat precedes plans for expansion into other Indian regions and select international markets.

3) RBI Governor Das reminds banks and NBFCs to handle public funds responsibly during MPC meeting. Recent actions against entities like Paytm, IIFL Finance, and JM Financial underscore regulatory scrutiny. S&P warns of higher capital costs due to stringent measures, with RBI emphasizing compliance and customer protection.