1. Stock name: Suzlon Energy Ltd.

Pattern: Rounding bottom pattern and retest

Time frame: Monthly

Observation:

After hitting its ATH in 2008, the stock experienced a sharp decline but began recovering in 2023, now reaching levels last seen in October 2011. The monthly chart from 2011 to 2023 shows a rounding bottom pattern, with a breakout occurring in November 2023. The stock is currently undergoing a retest of the breakout level. According to technical analysis, a successful rebound from the retest and momentum gain may lead to further upward movement.

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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: Castrol India Ltd.

Pattern: Cup and handle pattern

Time frame: Weekly

Observation:

Since October 2016, the stock has been on a downward trend. Between May 2021 and December 2023, it stabilized and developed a cup and handle pattern on the weekly chart. December 2023 witnessed a breakout from the pattern, backed by substantial trading volume. Following the breakout, the stock trended upward, supported by a positive signal from the MACD indicator. Technical analysis suggests that if the current momentum is sustained, the stock 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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News for the day:

1) RBL Bank sells stressed credit card loans worth ₹800 crore to Kotak Bank, reflecting the bank's effort to address one-fifth of its gross non-performing assets attributed to credit card repayment delays. This move follows RBL Bank's initiative to clean up its books after a leadership change, aiming to recover from a more than 50% loss in market capitalization over the past five years.

2) Torrent Power is set to raise up to Rs 650 crore via non-convertible debentures (NCDs) with possible tranches of two, three, and five years, arranging the issue through Axis Bank and Barclays. The Ahmedabad-based company aims to utilize the funds, considering its expansion into the green energy sector.

3) A shortage of engineering, procurement, and construction (EPC) players is impeding wind energy projects, with the wind energy sector witnessing a reduction from 32 to 12 players since 2016-17, including bankruptcies and business model changes. The shift from feed-in-tariff to auction regime by the government in 2017 altered the business dynamics for these companies, contributing to the scarcity, according to industry officials.