Best intraday stocks to watch out for on August 12
On Thursday, the Nifty had opened at the sloping trend line resistance, with a big positive gap of 185 points.
For the second consecutive, the open was almost the highest point of the day. As we projected earlier, the current rally extended till 17720. But the question now is, will it sustain at the current levels?
The prior major swing high is at 18115. The Nifty just traded within 87 points range. On a weekly derivative expiry, this small intraday range is a surprise. On lower time intraday charts, the Nifty has formed lower high and lower low bars. The Nifty is moving higher, but the Elders impulse system has not formed a bullish bar. Currently, the rally has extended 8.2% above the 50 DMA.
The negative divergence persists in major indicators. The daily RSI tested the 80 level. Historically, the Nifty never sustained above 80 zone. The MACD histogram further declines on a bullish day is, showing the loss of momentum in the trend. After a 16.65% rally, when the index is trading at the strong resistance zone, it is better to have a cautious approach. It is important to cross the 17720 zone for an uptrend to continue.
The stock has broken out of a bullish pennant pattern with high volume. They consolidated for six days and moved higher. It is above all key moving averages. It is 5.39% above the 20 DMA and 13.3% above the 50DMA. The moving average ribbon is in a clear uptrend. The MACD line is above the zero line and the signal line. The KST is in a bullish setup. The RRG RS is above the 102. and the ADX (40.87) shows solid strength in the trend. In short, the stock has broken out of a bullish continuation pattern. A move above Rs.49400 is positive, and it can't test Rs 52100. Maintain a stop loss at Rs 48500.
The stock closed above the prior pivot, breaking the 86-day-long cup pattern with higher volume. The cup depth is almost 27%. It is trading above all key moving averages. Trading 6.44% above the 20DMA and 15.84% above the 50DMA. The MACD and TSI have given fresh bullish signals. The stock has formed a bullish bar in the Elder impulse system. The stock is also above the TEMA. In short, the stock has broken out of a long bullish pattern. A move above Rs 123 is positive, and it can test Rs128. Maintain a stop loss at Rs 119.
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