1. Stock name: Vaibhav Global Ltd.

Pattern: Rounding bottom pattern

Time frame: Daily

Observation:

Since May 2021, the stock has consistently displayed a downward trend. Between September 2022 and August 2023, a rounding bottom pattern materialized on its daily charts. In August 2023, a breakout candle emerged, supported by substantial trading volume. Currently, the stock is in the process of retesting this breakout level, while its RSI remains at a favorable level. According to technical analysis, a successful rebound from this level and gaining momentum may propel 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: Varroc Engineering Ltd.

Pattern: Double bottom pattern

Time frame: Weekly

Observation:

Since being listed on the NSE, the stock initially experienced a downward trend. However, it has found some respite and has been consolidating in price since February 2021. Between February 2021 and September 2023, the stock has notably formed a double bottom pattern on its weekly chart. In September 2023, it exhibited a breakout candle accompanied by strong trading volume. As of now, the stock appears to be following the direction of the breakout, and according to technical analysis, maintaining this momentum may propel it further 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.

News for the day:

1) Maruti Suzuki will issue shares worth Rs 12,800 crore to Suzuki to buy the Gujarat plant, making Suzuki Motor Gujarat a wholly-owned subsidiary of Maruti Suzuki. This will help in streamlining manufacturing operations.

2) India has reduced the windfall tax on domestic crude from Rs 12,100/tonne to Rs 9,050/tonne, along with reductions in diesel export duty from Rs 5 to Rs 4 per liter and jet fuel tariff from Rs 2.5/liter to Rs 1/liter, effective October 18, as part of an ongoing assessment based on global oil prices. This move is part of the Finance Ministry's efforts to adjust these duties and taxes to economic conditions and market dynamics.

3) Promoter CK Birla is in talks with Gautam Adani to sell his 37.9% stake in Orient Cement, seeking a buyer after turning down previous offers; however, Birla's high valuation demand, twice the current market price, may pose challenges to the transaction. Adani Cement, which recently acquired Sanghi Industries, is actively expanding its cement portfolio with a total capacity of 110 MTPA.