Technical Analysis of RAYMOND & RATTAN INDIA

1. Stock name: Raymond Ltd.

Pattern: Cup and handle pattern and retest

Time frame: Weekly

Observation:

The stock's overall trend remains positive. Between January 2018 and June 2023, a cup and handle pattern emerged on its weekly chart. A breakout from this pattern occurred in June 2023 with average trading volumes. Following the breakout, the stock has experienced an upward trajectory. Presently, the stock is undergoing a retest of this breakout level, with the RSI hovering around 50, suggesting room for RSI growth. According to technical analysis, a successful rebound from this retest may move 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.

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2. Stock name: RattanIndia Enterprises Ltd.

Pattern: Cup and handle pattern and retest

Time frame: Daily

Observation:

Following a rapid upward movement, the stock entered a consolidation phase, exhibiting sideways movement. During the period from January 17, 2023, to August 25, 2023, a cup and handle pattern formed on the daily chart. Breakout from this pattern was seen with the candle of August 25, 2023, characterized by substantial trading volume. Post-breakout, the stock experienced an upward trajectory. Presently, it is undergoing a retest of the breakout level. The RSI of the stock has stabilized around 50, indicating sustained price strength and room for further RSI growth before entering the overbought territory. According to the technical analysis, if the stock is able to successfully bounce from the retest, it may move in an upward direction.

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) Following the GST rate hike to 28%, DGGI issues Rs 55,000-cr tax demand to eGaming firms, including a record Rs 25,000-cr notice to Dream11. More notices are expected, and the total GST demand from RMG companies could reach Rs 1 lakh crore. The companies have the option to appeal the notices.

2) The RBI has imposed penalties on SBI, Indian Bank, and Punjab & Sind Bank, amounting to Rs 1.3 crore, Rs 1.62 crore, and Rs 1 crore, respectively, for various regulatory non-compliance issues. Additionally, Fedbank Financial Services Limited faces a penalty of Rs 8.80 lakh for not complying with certain fraud monitoring directives in NBFCs.

3) Delta Corp Ltd. shares plunged by 20% to a 33-month low following the receipt of GST-related tax notices amounting to Rs 16,822 crore, issued by the Directorate General of GST Intelligence. The demands cover the period from July 2017 to March 2022, with the first notice of Rs 11,140 crore directed at Delta Corp and the remaining Rs 5,682 crore targeted at three of its subsidiaries.