Best intraday stocks to watch out for on 10-April-2023
Nifty closed positively for the second successive week.
With a long weekend, the traders were cautious in the last two hours on Friday. The index closed at the sloping trendline resistance and the last four days' rally was seen on the back of the lower volume.
Currently, the index is closed above the 200DMA, 200DMA and 50DMA. The index met the measured target of double bottom pattern breakout. It filled the March 10, gap. The price structure does not show any weakness. But, there are several concerns about ongoing trends. The low volume in the last three days is a matter of concern. Even though the Nifty is 2.26% above the 20DMA and 0.44% above the 50DMA, both moving averages are in the downtrend. The index has retraced and faced resistance at the 38.2% retracement level of the prior downtrend since December 2022.
The index has bounced 725 points from the recent low in just five days. Normally, all the impulse moves will attract counter-trend consolidations. Let us wait for that. The Relative Strength Index (RSI) is still below the strong bullish zone(above 60). After the 14th of December, it sustained below the 60 zone. The MACD line is still below the zero line on daily and weekly charts.
The India VIX is at the lowest level in recent history. The VIX and the benchmark index have an inverse relationship. All the tops were made at the lowest VIX levels. A spike in the VIX will hurt the uptrend. Almost all the sectors are losing their relative strength and momentum. For the next two weeks, keep risk management as the top priority in trading decisions, and keep exposures at modest levels, adopt a cautious outlook.
The stock closed at the Flat Base resistance. It closed above the 38.2% retracement level of the prior downtrend. The recent upswing is with higher volume. The 20DMA is about to cross the 50DMA, which will be a short-term positive. It is trading 3.85% above these moving averages. The MACD is above the zero line, and the histogram shows a strong bullish momentum. The RSI is in a strong bullish zone, while the elder impulse system has formed strong bullish bars. The stock closed above the Anchored VWAP and in the Ichimoku cloud. The KST and the TSI indicators have been in a bullish set-up. In short, the stock is about to breakout a base. A move above Rs 1669 is positive, and it can test Rs 1728. Maintain a stop loss at Rs 1650.
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