1. Stock name: Sun Pharmaceutical Industries Ltd.

Pattern: Rounding bottom pattern

Time frame: Monthly

Observation:

Over the past 7-8 years, the stock has first seen a downtrend and then recovery in its price and it's presently trading at a level similar to that of March 2015. From March 2015 to July 2023, the stock's monthly charts display a rounding bottom pattern, and the July candle signifies a breakout from this pattern with average trading volumes. Currently, the stock is in the process of retesting this breakout level. The stock's RSI sits comfortably at 65, and the MACD indicator exhibits positive indications. According to technical analysis, if the stock can recover from the retest and gain momentum, it may trend upward.

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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2. Stock name: Indian Overseas Bank

Pattern: Cup and handle pattern

Time frame: Monthly

Observation:

Since January 2008, the stock has generally been on a downward trajectory. However, between May 2016 and September 2023, a cup and handle pattern emerged on the monthly charts. The candle for September 2023 indicates a significant breakout. This breakout candle was accompanied by substantial trading volumes. According to technical analysis, if the stock can sustain this momentum, 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) L&T's power business has secured a "significant" order worth up to Rs 2,500 crore from West Bengal Power Development Corp to set up wet Flue Gas Desulphurization systems for a thermal power plant. This marks L&T's first FGD project from a state-owned power utility and contributes to the government's efforts to reduce SO2 emissions.

2) Indus Towers warns it may limit services to Vodafone Idea (Vi) and take legal action to recover unpaid dues due to Vi's continuous failure to make contractual payments, causing financial and operational challenges for the tower company. This could potentially disrupt mobile coverage for Vi's 228.33 million customers and result in further market share losses.

3) Reliance Brands is set to acquire a majority stake in Superdry for the Indian market, with a £40 million deal involving Superdry's intellectual property assets in India, Sri Lanka, and Bangladesh. Superdry will invest £9.6 million in the partnership, offsetting it against the £40 million receivable from Reliance.