Best intraday stocks to watch out for on 17-May-2023
Nifty50 index had given up the previous day's gains and ended lower by 0.61%.
The Nifty has formed the most bearish candle, where open is high and close is almost at the day's low. The candle formation on the daily chart resembles to a bearish engulfing candle. At swing high, this is the second bearish engulfing candle formation in the last four days. In the last six trading sessions, the index has been moving higher with indecisive or bearish candles. After May 05, it closed below the 5EMA and took support at 8EMA. The Nifty took support at the rising trend line. The Nifty has also formed a rising wedge, which is bearish. If the index closes below Tuesday low of 18264, it means a breakdown. The MACD line began to decline, and the histogram shows a further decline in bullish momentum.
The RSI clearly developed a negative divergence in the bullish zone; a decline below the 60 zone will result in a sharp sell-off. On an hourly chart, the Nifty failed to close above the prior bar high. It also closed below the hourly moving average ribbon. The Elder impulse system has formed five consecutive bearish bars on the hourly chart. This is the first time after March 2023. For now, only in case moving above today's high of 18432 is positive. Below 18264 is negative, and it can test the 20DMA of 18026. There is a lesser possibility of forming an inside bar. Avoid long positions, and look for a breakdown for short positions.
The stock closed above the 10-day tight flat base. Volume was higher in the last five days. The stock also closed above the November 15 gap area. It has broken out of a 122-day cup pattern. The stock is trading above the moving average ribbon and above all key moving averages. It is 2.96% above the 20DMA and 6.92% above the 50DMA. The MACD has given a fresh buy signal. The RSI is in the strong bullish zone. The Elder impulse system has also formed strong bullish bars. It is above the Ichimoku cloud and the Anchored VWAP resistance. In short, the stock has registered a tight base breakout. A move above Rs 242 is positive, and it can test Rs 255. Maintain a stop loss at Rs 237.
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