Best intraday stocks to watch out for on August 10
The Nifty negated the inside bar's bearish implications by closing above Thursday's high. It formed another higher high and higher low candle. Metal and Private sector banks drove the rally. Considering it is a truncated week lowest volume in the last two months has been recorded on Monday.
The Nifty has not breached the prior day low and has not given any kind of weaker signal. As it closed above 17491, the targets are open towards the 17625-700 zone. The only suspicion is about the rally on the low volume. The momentum also declined for the fourth day. The strong price action on low volume and declined momentum are not trustworthy. On a 75-minute chart, the RSI and MACD lines decline when the price moves higher. This negative divergence also gives some weaker price internals. It needs confirmation for the bearish implications by closing below the prior day's low. For now, the 17286-264 zone of support is key. If the Nifty trades above this zone, be with the trend.
The stock has been consolidating in a tight range for the past seven days. It closed at the resistance. A close above the moving average ribbon along with the MACD line above the zero line, is a bullish signal. It has also closed above the 50DMA. The RSI is clearly above the prior swing highs and near a strong bullish zone. The RS momentum has reached above 100 zone, and the Elder impulse system has formed a bullish bar. The KST and TSI indicators have given a bullish signal. The stock has also closed above the sloping trend line resistance. In short, the stock is poised for a sharp-up move. A move above Rs 970 is positive, and it can test Rs 1010. Maintain a stop loss at Rs 945.
The stock has broken the rising channel and the prior low. It declined below the moving average ribbon. It is also decisively below the 20 and 50DMA. The MACD line is very near to the zero line, and the histogram shows an increase in bearish momentum. The RSI has closed below the prior lows and entered the bearish zone. The Elder impulse system has formed a series of bearish bars. The 200DMA acted as a strong resistance. It also closed below the Anchored VWAP. The KST and TSI indicators have given a sell signal. The Relative Strength and Momentum are lagging. In short, the stock broke the key supports. A move below Rs 794 is negative, and it can test Rs 765. Maintain a stop loss at Rs 811.
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