Best intraday stocks to watch out for on February 13
Another week of sideways has gone and formed another inside bar as it traded just in the range of the previous day.
The last seven days' price action is limited to the budget day range. The previous day's dragonfly doji did not get any trend change implications. The Nifty has formed another hanging man candle. It closed below 20DMA. The indecisiveness is not limited to the benchmark indices. The broader market and all the sector indices were very flat, and the index breadth and the broader market breadth are not at all encouraging. The benchmark indices are trading with higher volatility, but the VIX has been at the lowest level since December 2022. It declined over 37% pre-budget day to just 12.74. Incidentally, the Nifty has almost formed a minor swing high.
Even the Implied Volatility has declined to 10.79, which is also a historic low. In these low volatile conditions, the market will experience wild swings. On low volatility, approaching the market with the highest caution is required. The VIX and Nifty have an inverse relationship. When VIX is at the lowest level, the Nifty will form a swing high. If the Nifty fails to close above the budget high of 17972, it may resume the downtrend next week. If it trades below this crucial, it is advised to avoid long positions. On the downside, 17774 is going to be a crucial support on Monday. Below this level, it will resume its downtrend in a faster manner. Be with a neutral to negative stance on the marker for now. Wait for a decisive move for a directional trade.
The stock has broken the ascending triangle on the downside, and It also broke the parallel supports on an intraday basis and closed on crucial support. It is below the 20DMA and moving average ribbon. Trading below 1.64% below the 200 DMA and 4.15% below the 50DMA. The MACD has given a fresh bearish signal. The RSI is just on the 40 level and below the prior low. The Elder impulse system has formed strong bearish bars. The stock also broke below the Anchored VWAP support. The KST and the TSI have given bearish signals. In short, the stock is at very crucial support. A move below Rs 1939 is negative, and it can test Rs 1868. Maintain a stop loss at Rs 1989.
The stock is showing signs of ending its five-month long base. It decisively closed above the prior minor high and all key moving averages. The Bollinger bands began to expand, showing an upside move is possible. It is decisively above the moving average ribbon. It closed 5.43% above the 50DMA. The MACD line is above the signal and zero lines. Histogram shows an increased bullish momentum. The Elder impulse system has formed a strong bullish bar. KST and TSI indicators are in the bullish set-up. It is just on the Anchored VWAP resistance. Friday's massive volume shows a fresh buying interest in the stock. In short, the stock is ready to register a breakout. A move above Rs 889 is positive, and it can test Rs 924. Maintain a stop loss at Rs 834.
DisclaimerInvestment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
Copper prices saw a modest 0.33% gain, reaching 722 on Thursday, as worries about a slowdown in Chinese manufacturing loomed large. The November's NBS Manufacturing PMI slipped to 49.4, the second consecutive monthly decline, heightened concerns, emphasizing the need for additional government support to fortify China's economic growth. The NBS Non-Manufacturing PMI at 50.2, reflecting the 11th month of service sector expansion, hinted at a softer pace.
- Dec 01, 2023Read More
Our markets started the truncated week on a positive note and it rallied higher throughout the week. The first day of the December month infact witnessed a new record as the Nifty surpassed its previous high and ended in uncharted territory above 20250 with weekly gains of almost two and a half percent.
- Dec 01, 2023Read More