Vesuvius India | Rounding bottom | Latest stock market news(3 minutes read)

Stock name: Vesuvius India

Pattern: Rounding bottom

Time frame: Weekly

Observation:
The stock has broken out of a very long rounding bottom consolidation on a weekly time frame. Once the stock breaks out of such a pattern, the stock travels the distance equal to the difference between the neckline and the bottom of the rounding bottom pattern. Here the neckline is around 1500 and the bottom is around 750, which implies that the stock may touch 2250.

Since this is a weekly time frame, it is usually perceived that these positions can take many weeks / many months of time to move.

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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.

News for the day:

1) Shares of Mahindra and Mahindra Financial Services fell as much as 14% in today’s trade after the RBI yesterday ordered it to immediately stop loan recoveries via external agents till further orders.

2) The Indian rupee today fell 41 paise to all-time low of 81.20 against US dollar in early trade on the back of US Treasury yields climbing to fresh multi-year highs and dollar demand from importers.

3) The Union Cabinet on Wednesday approved the Ministry of New & Renewable Energy's proposal for implementation of the PLI Scheme (Tranche II) on 'National programme on High Efficiency Solar PV Modules', with an outlay of Rs. 19,500 crores. The national programme on High Efficiency Solar PV Modules aims to build an ecosystem for manufacturing of high efficiency solar PV modules in India, and thus reduce import dependence in the area of Renewable Energy.