Best intraday stocks to watch out for on March 21
Domestic benchmark NSE index, Nifty50, opened with a negative gap and declined below the previous week's low yesterday.
The late recovery of 160 points from the day's low has developed a positive divergence in RSI. The Nifty once again took support at the downward channel's support line. Except for the bounce from the lower levels and positive divergence, no other positives are visible now. The index has formed an open=high candle, which is negative. Friday's Doji candle failed to get the confirmation for a bullish reversal. It also formed a lower high and lower low candle, which carries a negative implication. The short-period average, 5EMA, has been acting as a resistance for the last seven days. Only a close above the prior day's high of 17067, and 5EMA (17070), the Nifty can test 17255. On an hourly chart, it formed a double bottom pattern, with a valley point at 17145. Above this, it can test the 17255-314 zone of resistance. As the Nifty retraced more than 62% of the day's losses, the selling pressure may recede.
Only in case of negative global cues the indices may decline further. The hourly RSI indicates a possible bounce. For now, play a safe game with hedged positions. Neutral strategies may work for the next 2-3 days.
The stock has broken out of an ascending triangle or a cup and handle pattern. It closed at the new 52-week high. Trading above all key moving averages. The moving average ribbon is in an uptrend. It is 3.76% above the 50DMA and 3.91% above the 20DMA. Its Relative Strength line is at a new high, showing an outperformance compared to the broader market. For the last two weeks, volumes were above average. The Elder impulse system has formed strong bullish bars. The stock cleared the Anchored VWAP resistance. It is also trading above the Ichimoku cloud. In short, the stock has registered a bullish breakout. A move above Rs 962 is positive, and it can test Rs 984. Maintain a stop loss at Rs 950.
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