Best intraday stocks to watch out for on August 05
On Thursday, over 300 points decline in just two hours has given early signs of the end of the current trend.
Nifty opened with a positive gap, and it oscillated in 329 points range. It was the highest intraday range in recent times. At the end of the day, it has formed a hanging man candle. Though it oscillated in the highest range, the index did not even test the shorter periods average of 8EMA. It looks still strong on a closing basis. The MACD histogram declined for the second day. All the rallies since last October's high are with lower volume, and the declines has attracted higher volume. Our suspicion is, generally, that the low volumes are not trustworthy. The broader market breadth is negative, and only the defensive Pharma and IT sectors protected the index from a big negative close. The exhaustion needs to get a confirmation for bearish implications. The weekly close may give some clarity on the trend continuation. Only a close below the 17160-130 zone will give a reversal signal. If it forms a higher high bar, it better be with the trend.
The stock has ended its counter trend and tested the previous parallel lows. It has also declined below the key moving averages. It is below the moving average ribbon and 20DMA. The MACD is about to give a sell signal below the zero line. The RSI declined sharply to the 45 zones. The Elder impulse system has formed a bearish candle. It is below the Anchored VWAP support. The KST is about to give a sell signal, and the TSI has given the sell signal. The stock is also below the TEMA. In short, the stock has given a bearish signal. A move below Rs 440 is negative, and it tests the previous low Rs 415 and Rs 403. Maintain a stop loss at Rs 450.
The stock has sharply up on the highest volume. It closed above the 20DMA decisively. it is also above the moving average ribbon. The massive volume indicates fresh buying interest. The stock is also 2.79% above the 50DMA. The MACD has given a fresh buy signal. The Elder impulse system has formed a strong bullish bar. It is also above the Anchored VWAP resistance. The KST and TSI indicators have given fresh buy signals. The RSI is near the strong bullish zone. In short, the stock looks strong technically. A move above Rs 364, and it can test Rs 379. Maintain a stop loss of Rs 358.
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