Best intraday stock to watch out for on 15-March-2023

resr 5paisa Research Team

Last Updated: 7th September 2023 - 05:09 pm

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As we forecasted, the Nifty exactly took support at channel support 16987 and bounced by 56 points. As it declined by 4.41% or 785 points in just four trading sessions, it consolidated for some time. Generally, this kind of sharper decline takes a rest before resuming the preceding trend. If Tuesday low is protected, the Nifty can bounce towards the level of 17178 and 17297. In present situations, these levels may be the most optimistic forecast to be achieved. The broader market is weaker as almost 60% of the Nifty 500 index stocks are below 200DMA. The Advance-Decline ratio is very poor. No sector is in a position to lead the market. 

The logic behind the bounce is simple. First, it has tested the key support of the slopping channel. Secondly, it has tested the 88% Fibonacci extension level of the prior two swings. Third, it formed a lower low in a faster manner and will attract consolidation, normally. Fourth, positive divergences are developing in daily RSI, which is also in the oversold condition on an hourly chart. Fifth, It retraced 50 per cent (17035) of the June-December 2002 rally. Corrections take a pause between 50 and 61.8% levels. The 61.8% level is at 16598. The 200 DMA is at 17444. With the above factor, we better stay neutral to a positive instead of a strongly bearish view. In other terms, limited downside, limited upside. As stated above, the Nifty may consolidate between the 16920-17472 zone. To halt the fall, Nifty must protect today's low 16987 and close positively tomorrow. But, expect the unexpected with negative newsflow from the global markets. 

CUMMINSIND 

Even in the weak market, the stock has been consolidated for the last four days above the prior pivot level. It is trading in a very tight range and forming indecisive candles. The stock is trading above all moving averages. It is clearly above the moving average ribbon. It is 12.14% above the 50DMA and 4.77% above the 20DMA. The MACD and RSI are in a strong bullish momentum. The Elder impulse system has formed a fresh bullish bar. KST and the TSI have been in a bullish set-up. In short, the stock has higher relative strength and is near the pivot level. A move above Rs.1694 is positive, and it can test Rs.1740. Maintain a stop loss at Rs.1666. 

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