Best intraday stocks to watch out for on July 04
The equity benchmarks are reluctant to take a decisive directional bias. The gap opening has become a new norm of the market.
Almost all five days market opened with a gap and moved against the opening levels. It opened with a huge gap on Monday, but it did not sustain and formed a bearish belt hold candle. The Nifty failed to move above the weekly opening high. Even on the weekly chart, the bearish belt hold like candle structure is intact, though it registered a smart recovery on Friday from the low. In a major downtrend, the intermediate trend is up, and the minor trend is waiting for a decisive direction. So, the breakout will take place when the Nifty decisively crosses the 20DMA, which is currently placed at 15827. It also acts as resistance. On Thursday and Friday, the Nifty formed two contradictive candles. On Thursday, it formed a long upper shadow Doji candle, and On Friday, it formed a long lower shadow small body candle. This contradicting behaviour of the price is nothing but a wavering psychological mindset of market participants.
The Nifty has to fill the gap 13th June Gap and needs to sustain above the gap area. In other words, the Nifty must cross the 61.8% retracement of the prior downswing. Currently, this level is at 16178. Before this level, there is another resistance in the gap area at15989, which is 50% retracement. Only above this level expect some strong bullish case scenario. On the downside, the 100-week average has been acting as strong support for the last three weeks. Currently, it is placed at 15405.The previous week's low of 15511 and 15405 zone will be a crucial support zone for the market now. In any case, if the Nifty decline below 15405 decisively, the market will resume the downward move in a faster manner.
The stock has formed a bullish flag pattern and closed at the resistance. It took support at 20EMA on Friday and bounced. The pattern formation at the very long parallel resistance line has importance. During the pattern formation, the declining volume is a normal phenomenon. It is trading above all key moving averages. The MACD is above the zero line and has a bullish momentum. The RSI is in a strong bullish zone. The +DMI line is above the -DMI, and rising ADX shows the pickup in the trend strength. The KST and TSI indicators show bullishness. It is also trading above the Anchored VWAP resistance. In short, the stock has formed a bullish pattern and the breakout will lead to a sharp upside move. A move above Rs 2771 is positive, and it can test Rs 2870. Maintain a stop loss at Rs 2715.
The stock has formed a base at Rs 473, and for the past 10 days, it is trading in a range of Rs 473-490 zone. It closed at the base resistance and above the 20DMA. It broke the sloping trendline resistance, giving an early sign of a pattern breakout. The MACD has given a fresh buy signal. The +DMI rose above the ADX. The declining -DMI shows weakening bears. The RSI is at 40 and it has broken out of the squeeze area. It has formed a strong bullish bar in the Elder impulse system. The KST is about to give a buy signal, and the TSI has already given the buy signal. In short, the stock has formed a base, and a breakout will lead to a sharp upside move. A move above Rs 491 is positive, and it can test Rs 511. Maintain a stop loss at Rs 485.
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