Best intraday stocks to watch out for on March 08
As we expected, Nifty tested the gap area resistance and filled it to close above the 20DMA too.
After opening with a positive gap, the Nifty sustained the initial gains. But it did not stay at the higher levels and declined by almost 90 points from the day's high. It formed a shooting star candle, which is bearish in nature when it forms at a swing high. As forecasted, the index has tested the 61.8% retracement level. Generally, the pullback rallies in a downtrend end at 61.8% retracement levels. Only in case of moving above today's high of 17800 will be positive. If the Nifty closes negative in the trading session, the shooting star candle will get a confirmation for its bearish implications. The RSI is back to the above 50 zones, and the MACD line is about cross the signal line. A move below 17644 will be more negative.
On Monday, the index faced resistance at a 10-week average also. As mentioned earlier, the confluence of resistance worked well for now. We need to get the confirmation for a reversal now by closing below Monday's gap area.
The stock closed at the prior pivot level, and it is also near the lifetime high. Its Relative Strength line is at a new high, showing an outperformance compared to the broader market. It is about to complete the 8-week consolidation. Trading above all key moving averages. The moving average ribbon is in an uptrend. It is 11.44% above the 20DMA and 12.4% above the 50DMA. The MACD shows strong bullish momentum.
The RSI is in a strong bullish zone and the Elder impulse system has formed bullish bars. The KST and TSI have been in a bullish set-up. In short, the stock is about to break out a bullish pattern. A move above Rs 162 is positive, and it can test Rs 169. Maintain a stop loss at Rs158.
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