Best intraday stocks to watch out for on March 06
Nifty rallied after four days of oscillation around 200 DMA. It retraced just above the 38.2% of the prior downswing and moved above the 200EMA, but with a last-hour profit booking, it declined and closed below it.
On a weekly basis, the index closed above the 40-week average and form a hammer kind of pattern. On an hourly chart, it looks like a double-bottom breakout. It may retrace towards 17695 and 17800 levels in the coming days. The rally with higher volume validates the upside move. After the budget day, the Nifty recorded the highest volume. But the open interest declined by 3.82%, which is a concern and shows the unwinding of the positions. The rally was mainly led by the metal and banking stocks. The RSI went back to the above 45 zone, and the MACD line turned up.
As mentioned above, the immediate target and resistance are placed at the 17695-704 zone, which is 50% retracement level and the 20 DMA. The 50DMA is placed at 17857. Depending on the follow-through days, the Nifty may test this strong resistance in the next 3-4 four days. If it once again fails to attract the follow-up buying interest and closes below 17460 means, the bull power is just a short covering. For now, there is no sense in holding any short positions. But stay cautious; the bears can attack any moment as long as it trades below the 17950, which is a sloping channel resistance line.
Here is the best intraday stock to watch out for on Monday
The stock closed at crucial support of 11-day counter-trend consolidation. It closed just below the 20DMA support and on the parallel lows. It also formed lower highs during the consolidation. The MACD has given a fresh bearish signal by moving below the signal line. The RSI is below its 9-period average. The Narrowing Bollinger bands indicate the upside potential is limited, and it may test the lower band. The Elder impulse system has formed a bearish bar. TSI has given a sell signal, and the KST is about to give a bearish signal. In short, the stock is ready to end its consolidation. A move below Rs 459 is negative, and it can test Rs 442. Maintain a stop loss at Rs 466.
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