Best intraday stocks to watch out for on 22-May-2023
Nifty has formed a dark cloud cover like candle on the weekly chart, which indicates the exhaustion of a trend.
The weekly RSI is still in the neutral zone and declining. On a daily chart, the Nifty took support at 20DMA and bounced back as expected earlier. It formed a hammer candle at a lower volume than yesterday. It formed a lower low and lower high candle. A close above the prior bar high will be positive, and it can test the previous high. The Daily MACD is still bearish, and the histogram shows an increased bearish momentum. On an hourly chart, the index has formed two lower highs and two lower lows, which is a downtrend character. The India VIX is again at a historical low.
On Friday, it declined by 3.85%. This prolonged low VIX period is not good for the trending market. Friday's recovery is mainly because of the IT stocks rally and the recovery in the banking and financial stocks. Adani Enterprises and Adani Ports also contributed gains in the afternoon session. As the weekend was in place, traders covered short positions in many stocks to protect their profits. For a longer time frame, the Nifty has to close above the bearish engulfing candle for an uptrend to continue. The mean reversion is almost done. If the index declines below 20DMA (18107) on a closing basis, the downtrend will continue. Stay cautious for now on both sides.
The stock has broken out of a 13-day base with higher volume. It formed a strong bullish bar and closed above the 50DMA. On a lower time frame, it has broken out of an ascending triangle pattern. The 20DMA and the moving average ribbon are in an uptrend. The MACD line just closed above the zero line. The RSI is near the bullish zone and about to come out of the squeeze. The Elder impulse system has formed a strong bullish bar. It is in the leading quadrant in RRG charts, as relative strength and momentum are above 100. The stock also cleared the Anchored VWAP resistance. In short, the stock is above the crucial resistance. A move above Rs 1072 is positive, and it can test Rs 1100. Maintain a stop loss at Rs 1062. Above Rs 1100, continue with a trailing.
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