Technical Analysis of RENUKA SUGAR & SAPPHIRE FOODS

1. Stock name: Shree Renuka Sugars Ltd.

Pattern: Cup and handle pattern and retest

Time frame: Monthly

Observation:

Since January 2010, the stock has experienced a persistent downtrend. However, from September 2012 onward, it underwent a consolidation phase, followed by an upward trajectory post-COVID. During this ascent, the stock formed a cup and handle pattern on its monthly chart and saw a breakout candle in April 2022, accompanied by substantial trading volumes. Subsequently, the stock moved upwards and successfully retested the breakout level. The stock's RSI currently stands at approximately 60, indicating a positive outlook. According to technical analysis, if the stock can sustain this momentum, it may continue its 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: Sapphire Foods India Ltd.

Pattern: Cup and handle pattern and retest

Time frame: Daily

Observation:

The stock made its debut on the NSE on November 18, 2021. Since then, it has been trading in a sideways trend. Between November 3, 2022, and September 5, 2023, the stock formed a cup and handle pattern on its daily chart. On September 5, 2023, it experienced a breakout candle from this pattern, with average trading volumes accompanying the breakout. Subsequently, the stock began to move upwards, although it is presently undergoing a retest of the breakout level. The stock's RSI currently hovers around 50, indicating substantial potential for upward movement. According to technical analysis, if the stock can rebound strongly from the retest, it may continue its 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) G7 eases restrictions on Indian diamond trade, allowing purchases of roughs from Russian mines. This development provides relief to India's diamond industry amid challenges from sanctions and economic slowdowns. There are however still restrictions on cut and polished Russian-origin stones of one carat and above.

2) The Godrej Group, a ₹1.76-lakh-crore conglomerate, is nearing the finalization of a formal division of its business segments between two factions of the family, including engineering, appliances, security solutions, agriculture, real estate, and consumer products. The split, led by Adi and Nadir Godrej's faction and involving cousins Jamshyd Godrej and Smitha Godrej Crishna, aims to reorganize the conglomerate's diverse operations.

3) Mumbai will receive an additional 1,000 MW of power as Adani Energy Solutions completes the Kharghar-Vikhroli transmission line. This development will enhance the city's power import capacity, improve reliability, and support sustainable transportation infrastructure like bullet trains and metro rail.