Blog posts of '2024' 'May'

Stock name: Reliance Industries Ltd.

Pattern: Double top pattern

Time frame: Daily

Observation:

Since October 2023, the stock has seen a consistent upward trend. Between January 2024 and May 2024, it stabilized, forming a double top pattern on its daily chart. A breakout from this pattern occurred on May 07, 2024, backed by higher-than-average trading volume. Presently, the stock's RSI levels are in a low zone. According to technical analysis, sustaining this breakout momentum may lead the stock to move downwards.

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.

Stock name: Teamlease Services Ltd.

Pattern: Cup and handle pattern and retest

Time frame: Weekly

Observation:

Between August 2022 and April 2024, the stock stabilized, shaping a cup and handle pattern on its weekly chart. A breakout occurred in April 2024, accompanied by above-average trading volume and a bullish MACD indicator. However, the stock retraced to retest breakout levels, closing slightly below. Presently, the stock's RSI levels indicate a favorable zone. According to technical analysis, if the stock rebounds from the retest, it could 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:

• Tata Motors plans to merge its NBFC arms with Tata Capital ahead of the latter's IPO, aiming to streamline operations and reduce debt. This strategic move, advised by Bank of America, aligns with RBI requirements for NBFCs. Tata Motors seeks to unlock value through the IPO by monetizing its shares in Tata Capital.
• IREDA, a state-owned entity under MNRE, has established a subsidiary named IREDA Global Green Energy Finance IFSC Limited at the International Financial Services Centre (IFSC) in GIFT City, Gujarat. This move aims to enhance IREDA's global reach and secure competitive funding for renewable energy projects. Pradip Kumar Das, Chairman & Managing Director of IREDA, anticipates that this venture will unlock fresh business opportunities and establish a global presence for IREDA in the renewable energy sector.
  
  
• Asian Paints foresees increased rural market demand in Q1 of the fiscal year, with B2B growth expected in Q2 post-elections. However, challenges in Nepal and Egypt may affect near-term performance. Q4 earnings showed a slight rise in net profit, surpassing Rs 35,000 crore in revenue for FY2024, with resilient international business despite regional macroeconomic headwinds.

Stock name: AU Small Finance Bank Ltd.

Pattern: Cup and handle pattern and retest

Time frame: Daily

Observation:

From January 2024, the stock experienced a downward trend but later stabilized, forming a cup and handle pattern on its daily chart. It broke out from this pattern on April 29, 2024, with substantial trading volume and a positive MACD indicator. However, following the breakout, the stock underwent a significant retest, closing below the breakout level. Presently, the RSI levels of the stock remain favourable. According to technical analysis, if the stock manages to rebound from the retest, it may witness further upward movement.

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.

Stock name: Saregama India Ltd.

Pattern: Double bottom pattern

Time frame: Daily

Observation:

Since December 2021, the stock has been on a downward trend but stabilized from July 2023 to April 2024. During this time, it formed a double bottom pattern on its daily chart. On April 18, 2024, the stock broke out from this pattern with above-average trading volume. Following the breakout, there has been a slight upward movement in the stock. Additionally, the RSI level of the stock is in a favourable zone. As per technical analysis, the stock may see further upward movement if the breakout momentum is maintained.

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:

• TVS Supply Chain Solutions clinched a three-year deal to manage in-plant warehousing and logistics at VE Commercial Vehicles' Baggad plant in Madhya Pradesh. This extends their existing partnership since 2006. Both companies emphasize the importance of efficient logistics in maintaining production efficiency.
  
  
• The Reserve Bank of India (RBI) has lifted restrictions on Bank of Baroda's BoB World app, permitting immediate customer onboarding through the application. Bank of Baroda confirmed the RBI's decision, stating it can now onboard customers in compliance with guidelines and regulations. This follows earlier directives in October 2023, where RBI had directed the suspension of customer onboarding on the 'BoB World' mobile app due to supervisory concerns, which Bank of Baroda addressed with corrective actions.
  
  
• Larsen & Toubro's power transmission and distribution division has secured multiple orders in India and abroad. Projects include floating solar plants in India, transmission lines, and substations to integrate solar energy zones in Rajasthan and Karnataka. Overseas, L&T will build a gas insulated substation in Oman and substations in the United Arab Emirates, contributing to grid strengthening initiatives.

Stock name: Indiamart Intermesh Ltd.

Pattern: Double bottom pattern and retest

Time frame: Daily

Observation:

Since September 2023, the stock has undergone a downward trend. Between December 2023 and May 2024, it stabilized, forming a double bottom pattern on its daily chart. On May 2, 2024, the stock broke out from this pattern, backed by significant trading volume. Yet, subsequent to the breakout, it underwent a substantial retest, closing below the breakout level. This retest caused a decline in the stock's RSI level. According to technical analysis, a rebound from this retest may prompt an upward movement in the stock.

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.

Stock name: Laurus Labs Ltd.

Pattern: Cup and handle pattern and retest

Time frame: Weekly

Observation:

Since August 2021, the stock experienced a decline before stabilizing post-November 2022. Notably, it formed a cup and handle pattern on the weekly chart. In April 2024, the stock broke out from this pattern with strong trading volume and a bullish MACD indicator. Presently, it is undergoing a retest of the breakout level, coinciding with a favourable RSI level. Technical analysis suggests that if the stock rebounds from this retest, it may potentially ascend further.

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:

• The government is considering RBI's proposal for higher infrastructure provisioning, sparking concern among lenders and NBFCs. Draft rules suggest raising provisions from 0.4% to 5%, prompting fears of increased interest rates and project viability issues. Stakeholders plan to lobby against the steep increase, emphasizing the need to balance risk in infrastructure financing.
  
  
• Aditya Birla Finance and other lenders have invoked Paytm's loan guarantees due to customer defaults, signalling strain in Paytm's lending business post central bank's ban on Paytm Payments Bank. Paytm faces challenges with reduced consumer loan portfolio and halted disbursals, prompting management changes. Amidst this, Paytm may seek new partnerships to revive loan issuance, while NBFCs express caution about unsecured consumer lending.
  
  
• State-owned Power Finance Corp (PFC) is seeking legal advice on a proposed ₹15,000 crore loan to Shapoorji Pallonji (SP) Group promoters, leveraging their Tata Sons shares. The Mistry family, SP Group's promoters, aims to secure funds against real estate business cash flows and Tata Sons shares.

Stock name: Anupam Rasayan India Ltd.

Pattern: Double top pattern

Time frame: Weekly

Observation:

Since its listing in 2021, the stock witnessed an upward trajectory before consolidating and forming a double top pattern on its weekly chart. April 2024 saw a breakout from this pattern, accompanied by above-average trading volume. Subsequently, the stock has been trending downwards, with the RSI at a low level. Technical analysis suggests that if the stock maintains its breakout momentum, it may continue its downward movement.

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.

Stock name: Birlasoft Ltd.

Pattern: Head and shoulders pattern

Time frame: Daily

Observation:

Since January 2023, the stock has been on an upward trend. Between December 2023 and April 2024, it stabilized, forming a head and shoulders pattern on its daily chart. On April 15, 2024, the stock broke out from this pattern, backed by a bearish MACD indicator. Following the breakout, the stock has descended. Technical analysis suggests that if the current momentum persists, further downward movement may be expected.

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:

• Tata Electronics, based in Bengaluru, has begun exporting semiconductor chip samples, enhancing India's semiconductor capabilities. These chips, packaged at the company's R&D center, are being sent to partners globally. Tata Electronics is also advancing in chip development, reportedly securing a deal with Tesla, and aims to establish itself as a comprehensive semiconductor design and manufacturing hub in India.
  
  
• Adani Green Energy, led by Gautam Adani, has secured a deal with the Sri Lankan government to build wind power stations in Mannar and Poonerin. A negotiation committee will assess Adani's proposal, leading to a 20-year power purchase agreement. This agreement marks a significant step towards renewable energy development in Sri Lanka.
  
  
• Sebi rejects NSE's bid to extend trading hours for index derivatives due to broker protests. NSE CEO cites lack of feedback, shelving the plan for now. The proposal aimed to introduce an evening session from 6 pm to 9 pm for index futures and options trading, but concerns over work-life balance and operational issues were raised.

Stock name: J.K. Cement Ltd.

Pattern: Double top pattern

Time frame: Daily

Observation:

Since June 2022, the stock displayed a notable upward trend, but in 2024, it stabilized, forming a double top pattern on its daily chart. A breakout from this pattern materialized on April 30, 2024. Following the breakout, the stock is descending, accompanied by a low RSI level. Technical analysis suggests that if the current momentum persists, the stock may see further downward movement.

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.

Stock name: Balkrishna Industries Ltd.

Pattern: Cup and handle pattern

Time frame: Daily

Observation:

Towards the end of January 2024, the stock experienced a downward trend, which later stabilized and formed a cup and handle pattern on its daily chart. A breakout from this pattern occurred on May 02, 2024, backed by a bullish MACD indicator. Presently, the RSI level of the stock is within a favourable range. According to technical analysis, if the breakout momentum persists, it may move further in the upward direction.

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:

• The Hinduja Group's investment arm, IIHL, aims to raise its stake in IndusInd Bank to 26%, seeking to boost its valuation to $50 billion by 2030. With RBI's nod secured, IIHL plans a significant investment of over Rs 11,500 crore for the additional stake. IIHL's broader strategy includes diversifying into various sectors, such as insurance and asset management, despite pending regulatory approvals and legal challenges.
  
  
• REC Ltd, a leading NBFC under the Ministry of Power, has obtained RBI's approval to establish a subsidiary in GIFT City, Gujarat. The subsidiary will engage in various financial activities, including lending and investment. This move reflects REC's strategy to diversify its portfolio and tap into the opportunities offered by GIFT City's growing stature as a financial hub. Vivek Kumar Dewangan, CMD of REC Ltd, expressed confidence in leveraging GIFT City's international lending platform to expand REC's presence in the global market.
  
  
• Kotak Mahindra Bank shares rose 4% post Q4 results beating expectations, despite RBI concerns and management departures. Nomura and JP Morgan upgraded the stock citing strong performance and favourable valuations. However, Jefferies and Axis Securities remain cautious due to uncertainties.

Once, you are done with the immense task of filing your ITR, you might think that the job is done. But wait, there is more to it. There are still a few things on the checklist that you may need to tick off first. What are these things? Let’s find out

1. Verify your ITR

To complete the return filing process, it is mandatory to verify your Income Tax Return (ITR). If you fail to verify it on time, your ITR will be considered invalid, meaning it is as good as you have not filed your return.

The CBDT (Central Board of Direct Taxes) has reduced the time limit of ITR verification to 30 days (from 120 days) from the date of return submission. The new rule is applicable for the returns filed online on or after 1st August 2022.

E-verification is the most convenient and instant method for verifying your ITR. However, if you prefer not to e-verify, you have the option to verify it by sending a physical copy of the ITR-V.

There are several methods available for e-verifying your ITR:

• Generate Aadhaar OTP
• Existing Aadhaar OTP
• Existing EVC
• Digital Signature Certificate (DSC)
• Generate EVC through a bank account
• Generate EVC through the Net Banking
• Generate EVC through DEMAT account
• Generate EVC through bank ATM option (offline)

2. Keep an eye out for notices and intimations

No, this is not to scare you into thinking that a scary notice from the Income Tax Dept. (ITD) is on its way once you have filed your ITR. However, it is important to stay alert.

You will receive an Intimation under section u/s 143(1) which will include details about your TDS deducted, Total tax paid, and any deductions that you may have claimed. If there’s no mismatch in the calculation made by you and the one made by the ITD, you have nothing to worry about. However, in case there’s a mismatch, the intimation will let you know about the same and you will have to make correction actions within the stipulated timeline.

One of the most common scenarios of mismatch is when you may have more tax liability than you thought. If you agree with the calculation of the ITD you can go ahead and pay the remaining tax. However, if you disagree with the calculation, you can respond accordingly on the new Income Tax Portal.

This year, the ITD is also sending an intimation regarding refund and if it feels that you have claimed more deductions than what you had declared to your employer. In such a scenario, you can either agree with the intimation and revise your return or you need to confirm that the deductions you have claimed are correct.

3. File Revised Return

If you find any error or discrepancy in your original return, you can rectify the same and file a revised return u/s 139(5). Such errors can include

• Any mistake in personal information like address, residential status etc
• Wrong ITR Form
• Missed reporting income sources
• Errors in carrying forward losses
• Mistakes in deductions claimed and so on.

Once you file a revised return, it will substitute your original return, and don’t forget that you also need to verify your revised return as well within 30 days of filing it. Alternatively, if you receive a notice from the ITD regarding any errors that you may have made in your original ITR, you will have to correct the same and file a revised ITR. You can file a revised return before the completion of three months of the relevant Assessment Year. So, for AY 2023-24, you need to file your revised return on or before 31st December 2023.

Track your ITR

Once you have filed and verified your ITR, you can track its status on the Income Tax Portal to check whether it has been processed or not. Processing of ITR can take anywhere from 1 day to 45 days, however, in some cases it can take longer too. If you feel that it is taking too long for your ITR to get processed, you can raise a grievance on the Income Tax Portal.

File Belated Return

This is for all those who snoozed through the due date of filing ITR. In case you’re one of them, it is time for you to buckle up and file your belated return u/s 139(4). You can file a belated return till 31st December of the relevant Assessment Year.

So, if you haven’t filed your ITR for AY 2023-24, you can file a belated return by 31st December 2023. But wait! Remember that filing a belated return comes with consequences. What are they? Let’s take a look

• Interest u/s 234A
• Late Filing Fees u/s 234F
• Inability to carry forward losses
• Inability to claim certain deductions/exemptions
• Inability to change tax regime while filing ITR

So, there you go, your to-do list after filing your ITR. And hey, if you are yet to file your ITR, do it at the earliest to minimize your penalty.

Stock name: Ratnamani Metals & Tubes Ltd.

Pattern: Inverse head and shoulders pattern

Time frame: Daily

Observation:

Since December 2023, the stock has experienced a decline, followed by stabilization and the formation of an inverse head and shoulders pattern on its daily chart. On April 29, 2024, the stock broke out from this pattern with average trading volume. Subsequently, it trended upward, accompanied by favourable RSI levels. According to technical analysis, if the current momentum persists, the stock may continue its ascent.

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.

Stock name: Aarti Industries Ltd.

Pattern: Cup and handle pattern

Time frame: Weekly

Observation:

Between November 2022 and April 2024, the stock's weekly chart reveals the emergence of a cup and handle pattern. In early April 2024, the stock experienced a breakout from this pattern, supported by a bullish MACD indicator. Following the breakout, the stock trended upwards. Additionally, the stock's RSI level indicates a favourable position. Technical analysis suggests that if the stock sustains its breakout 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:

• Six Adani Group firms received Sebi show-cause notices over related party transactions and listing rule breaches following allegations by Hindenburg Research. Adani Enterprises disclosed two notices for the quarter ended March 31. Although firms believe limited impact, auditors (except Adani Wilmar and Adani Total Gas) issued qualified opinions indicating potential future financial statement effects pending Sebi investigation outcomes. Sebi's scrutiny, prompted by Hindenburg Research's allegations, focuses on specific related party transactions.
  
  
• The Reserve Bank of India (RBI) has lifted restrictions on Bajaj Finance's eCOM and online 'Insta EMI Card' with immediate effect, following remedial actions by the company. Bajaj Finance announced the RBI's decision via an exchange filing, allowing it to resume loan sanctioning and disbursal in these segments, including EMI card issuance. Last November, the RBI had barred Bajaj Finance from advancing loans under these products due to non-compliance with digital lending guidelines, citing issues like non-issuance of key fact statements to borrowers.
  
  
• Dabur India CEO, Mohit Malhotra, confirmed compliance with FSSAI regulations for Indian markets and Spice Board guidelines for overseas markets for all its spices. Export consignments undergo rigorous testing by the Spice Board before shipment. The company employs steam sterilization and an in-house micro lab for quality assurance. This assurance follows recent concerns over spice blends in Hong Kong and Singapore, prompting investigations by FSSAI, FDA, and inspections at major spice companies' facilities.

Stock name: United Breweries Ltd.

Pattern: Cup and handle pattern

Time frame: Weekly

Observation:

From December 2022 and April 2024, the stock displayed a cup and handle formation on its weekly chart, forming in a breakout in April 2024, backed by substantial trading volume and a bullish MACD indicator. Presently, the stock's RSI level indicates overbought conditions. Technical analysis suggests that should the stock sustain its breakout momentum, it may potentially ascend further.

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.

Stock name: Firstsource Solutions Ltd.

Pattern: Cup and handle pattern

Time frame: Weekly

Observation:

Between July 2021 and April 2024, the stock exhibited a cup and handle formation on its weekly chart. April 2024 saw a significant breakout from this pattern, accompanied by substantial trading volume. Presently, the stock's RSI level resides within a favourable range, while also displaying a bullish MACD indication. Technical analysis suggests that if the stock sustains its breakout momentum, it may potentially ascend further.

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:

• The Godrej family has agreed to split their conglomerate, with Adi and Nadir Godrej retaining control of listed firms, while cousins Jamshyd and Smita oversee unlisted businesses and a land bank, including prime Mumbai property. This division aims to streamline operations and focus on core strengths, with Pirojsha Godrej set to succeed Nadir in 2026. Regulatory approval is pending for the realignment.
  
  
• Vedanta Group, led by Anil Agarwal, aims to invest $20 billion in Indian sectors like technology and electronics. Agarwal stresses the importance of selling the steel business at the right price and expresses commitment to its profitability. He also emphasizes philanthropic initiatives and hints at potential investments in the entertainment sector for cultural values.
  
  
• Jindal Stainless announces a Rs 5,400 crore expansion plan, including a joint venture in Indonesia for a stainless steel melt shop, set to boost melting capacity by 40%. Investments in Odisha's downstream capacities and acquisition of Chromeni Steels aim to enhance operations and strengthen presence in value-added segments.