Best intraday stocks to watch out for on December 9
The index traded on a dull note on the weekly expiry. It traded within the previous day's range and sustained below the 5EMA.
Volumes were low, and the trading activity was limited to the stock specific. After the monetary policy, the banks were in the limelight. Because the Nifty traded in the range, there is no major technical development that occurred on Thursday in the Nifty. The RSI took support just below the 60 zone and bounced. Wednesday support on the RSI 59.89 will be crucial for Nifty to sustain itself in the green. The index snapped its four-day negative closings. It took support at the 38.2% retracement level of the prior upswing. The daily range was shrunk. The nifty formed an inside bar, hence, the prior day's high of 18668 will become a crucial resistance. In any case, the Nifty closes above the 18625-668 zone of resistance; we can assume that the counter-trend consolidation is over. On other hand, the level of 18520 is likely to act as an immediate support. Only in case of declining below the level of 18520 zone of support will be negative for the index.
The weekly closing is also an import for the future direction. On the weekly chart, it has formed an open high candle and retraced 50 per cent of the prior weekly bar. Let us wait for resistance to be cleared for fresh long positions, until then focus on stock specific action.
The stock has formed a symmetrical triangle and closed near to the breakout line. It also closed above the moving average ribbon. It moved above the 200DMA and trading 3.25% above the 20DMA and 3.75% above the 50DMA. The RSI is near the prior high and about to enter the strong bullish zone. The MACD is above the zero line and signal. KST and TSI are in the bullish set-up. It also cleared the Anchored VWAP setup. The Elder impulse system has formed a strong bullish bar. In short, the stock is near the resistance for a bullish breakout. A move above Rs 523 is positive, and it can test Rs 534. Maintain a stop loss at Rs 503.
The stock has broken down the rectangle and double top pattern with a massive volume. It also closed below the key moving averages and moving average ribbon. It closed 1.64% below the 50DMA and 4.33% below the 20DMA. The stock entered the lagging quadrant as RS and Momentum are below the 100 zone. The KST and TSI have been in the bearish setup. The Elder impulse system has formed strong bearish bars, and it declined below the Anchored VWAP support. The RSI entered the bearish zone, and the MACD histogram shows a strong bearish momentum. In short, the stock has broken down the bearish pattern. A move below Rs 980 is negative, and it can test Rs 940. Maintain a stop loss at Rs 995.
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