Best intraday stocks to watch out for on October 03
Nifty index has formed a bullish engulfing candle after a 7.5% decline from the recent fall.
Nifty recovered more than 50% of the weekly losses. After the RBI's policy announcement, the index rallied almost 440 points from the day low. The index also closed above the 200DMA after two days. Interestingly, it tested the double top pattern breakdown level. The short-term moving average 8EMA acted as a resistance for the day.
Friday's bullish engulfing needs to get confirmation on Monday for positive strength in the coming day. Another positive technical development was that it closed above the 23.6% retracement level of the prior downtrend. On a weekly chart, it formed a hammer candle. The index closed just above the moving average ribbon on an hourly chart. But, during the last two hours of profit booking, the index declined 126 points and got the confirmation for a shooting star candle. On Monday, the index has to sustain above the 17100 level for a bullish reversal. In any case, if the index sustains above 17100, and the immediate target is 17263. As the slopping trendline resistance was rejected many times and formed the bearish candles in all timeframes, it is better to be on the sidelines unless we sustain above the 17100 level.
The stock has broken the multi-year resistance and closed at a new high, with a higher volume than the previous two days. It has also broken out of a 21-week cup and handle. Along with a price breakout, the Relative Strength line is at a new high. The RRG RS is above 100, and the momentum is very strong. The weekly RSI and MACD are in the strong bullish zone. The daily MACD is about to move above the signal line. The Elder impulse system has formed a strong bullish bar. It cleared the Anchored VWAP resistance. In short, the stock is at a new lifetime high and cleared the multi-year consolidation. A move above Rs 800 is positive, and it can test Rs 837. Maintain a stop loss at Rs 781.
The stock sustained below the 20 DMA on a bullish day and closed below the previous day's low. It took support at moving average ribbon. There is a serious negative divergence in RSI and MACD and the MACD has given a fresh sell signal. The RSI declined below the 50 zone. The last two days of the higher volume show the distribution in the stock. The -DMI just moved above the +DMI. The Elder impulse system has formed two successive bearish bars. The TSI has also given a fresh sell signal while the KST has been in the bearish setup for a long period. In short, the stock is near breakdown. A move below Rs 3329 is negative, and it can test Rs 3275. Maintain a stop loss at Rs 3355.
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