Tanushree Jaiswal Tanushree Jaiswal 7th September 2023

Best intraday stocks to watch out for on 25-May-2023

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On Wednesday, Nifty formed a shooting star-like candlestick pattern as a result, it led to the formation of a back-to-back shooting star candle at the swing hinting a caution for the traders. 

It is undoubtedly time not to be complacent. The VIX is slowly going up, and on Tuesday it shot up by 4.03%. It shows an inverse relation with the benchmark index after many days. This scenario will change the trend bias sooner or later. The Nifty opened with a gap down and recovered in the first hour itself. But, during the afternoon session, it witnessed fresh selling pressure at the day's high and declined sharply by over 130 points. Two consecutive shooting star candles at the near to previous swing high will have strong implications. 

The first shooting star formed on Tuesday got its confirmation of bearish implications as the Nifty closed below its low. Wednesday's low has the many supports and resistances earlier. So, Wednesday's low is its paramount importance. The next meaningful support is at 18198, which is 20DMA. The Nifty has registered a distribution day, as it declined over 0.25%, and the volumes are more than the previous day. The RSI closed just on the 60 and formed another minor high. The negative divergence is still valid in this major indicator. The MACD histogram further increased, showing the increased bearish momentum. On an hourly chart, the Nifty decline below the moving average ribbon and the MACD line is just on the zero line. A move below 18262 will give a clear bearish signal. The expiry day will definitely be a highly volatile day. 

HDFCBANK 

The stock closed below the prior swing low and below all key moving averages. It opened with a gap down, and all recovery efforts failed. It is below the moving average ribbon and below the 50DMA too. It is trading 1.94% below the 20DMA. The MACD line below the zero line and an increased histogram show strong bearish momentum. The RSI is just at the doorstep of the bearish zone. The Elder impulse system has formed strong bearish bars. The decline with higher volume shows the distribution. The stock declined below the Anchored VWAP support. The KST and the TSI indicators have been in a bearish set-up. In short, the stock broke the support. A move below Rs 1615 is negative, and it can test the Rs 1575. Maintain a stop loss at Rs 1634.

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