Best intraday stocks to watch out for on July 13
The Nifty has closed below its prior day and tested the four days low. As suspected earlier, the shorts were further increased.
On Tuesday, the index has taken support at 8EMA and 34 EMA. As it formed two consecutive lower highs and lows candles, the upside swing has matured. It took support at the 23.6% retracement level of the current upside move. The stochastic oscillator gave an early signal on Monday, and on Tuesday we saw it sharply coming down from an extreme overbought condition. Importantly, the index closed marginally below the 50DMA. The RSI is also slipped to an almost neutral zone and the histogram also shows a decline in bullish momentum. In fact, on a lower time frame, the Nifty has witnessed breakdown of the double top pattern. Tuesday's selling pressure with high future volume and an increased open interest shows that fresh shorts were built up. The daily Heiken Ashi candle turned red, which is an early indication of a reversal. The last two day's move confirms that the counter-trend rally is in the matured stage.
In any case a close below the prior low would result into breach of the bearish pattern on the hourly chart. A move below 16046 is negative, and it can test 15930.
The stock has closed at very crucial support. The 20DMA has been acting as a resistance. It is also trading below the key moving averages. It is 16.14% below the 50DMA. The RSI is in the strong bearish zone. The MACD line is below the zero line, and the histogram shows the decline in positive momentum. The -DMI is much above the +DMI, showing the dominance of the bears. The Elder impulse system has formed three consecutive bearish bars. In short, the stock is about to break the consolidation on downside. A move below Rs 101.50 is negative, and it can test Rs 91. Maintain a stop loss at Rs 105.
The stock has broken the upward channel. It is forming a head and shoulder pattern on the longer time frame and approaching the neckline. It has decisively closed below the 20DMA, and the 50 DMA acted as a resistance for the last two months. It is also trading below the moving average ribbon. The narrowed Bollinger bands indicate an impulsive move on the cards. The MACD is about to give a sell signal below the zero line. The RSI faced resistance at the 52 zone and declined. A move below Rs 620 is negative, and it can test Rs 600. Maintain a stop loss at Rs 634.
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