Best intraday stock to watch out for on July 08
The Nifty has reached near the 61.8% retracement level. For now, it almost filled the June 13 gap. It just managed to put its head above 50DMA, which is placed at 16121. Now, sustaining decisively above this will be an added positive for the Nifty. The Nifty has formed a small body candle with long lower shadow at gap area resistance. After a volatile session, this formation at a near resistance area shows exhaustion.
On Thursday, after opening with a big gap up on the weekly expiry day, the index is struggling to move further high. In any case, failure to sustain above 16130-178 zone, will not be good for the markets. A move in this zone, followed by a follow-through day, can extend the rally. The RSI above the 55 zone is one of the important technical events for a bullish move. In any case, the rally continues, and a weekly close the 16178 is a very big positive for the market. The index trading above the Anchored VWAP for the last two days, currently placed at 15984, will be a key support for now. Below this level, the 20DMA 15772 is major support. On a lower time frame chart, the momentum is low at the higher levels. There are no short opportunities for now and wait for a close below Thursday low for a reversal.
The stock has broken out of a 26-week consolidation with above-average volume. As it is trading above the prior pivot level, it is also trading above all the key moving averages. It is 21% above the 50-DMA and 23% above the 200-DMA. The short and long-term moving averages are in the uptrend in ascending order. It is also meeting Daryl Guppy’s multiple moving averages (GMMA) setup.
The weekly RSI is in a strong bullish zone while the MACD has given a fresh buy signal. The +DMI is above the -DMI and ADX. The Elder impulse system has formed two strong bullish bars.
Buy this stock above Rs 2016 with a stop-loss of Rs 1,970 for a target of Rs 2075-2100.
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