Blog posts of '2024' 'May'

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.