Best intraday stocks to watch out for on October 06
The Nifty erased all the losses of the last six days and almost filled the gap area.
After opening with a positive gap, the index had formed higher lows and higher high candles on an hourly chart. As the Nifty sustained above Friday's low and erased all losses of six days, the market status has changed to a rally attempt.
As the open interest declined, the rally mainly could be attributed to short covering. After a big gap-up opening, the Nifty mostly traded around the level of 17250. Most of the indicators are bouncing from the oversold conditions. As we said in the previous column, the Nifty closing above the Friday high and above the outside bar will be given a directional bias on the upside, which seems to come true. It also closed above the 38.2% retracement level, which is a positive indicator for the index. The next level of resistance is at 50DMA or 50% retracement level of 17445-422 zone. Above this zone, the market may retest the slopping trend line resistance.
But, the probability is that the index may consolidate between the 16747-17445 zone for some period. The RSI is back to near the 50 zone. The Elder impulse system has formed a bullish bar. The Relative momentum is above the 100 zone, and RRG RS is rising. With these technical developments, the market may sustain the positive bias for some time.
The stock has cleared the tight range resistance. After forming a strong base of around Rs 2960, the stock is bouncing strongly. It closed above the 20DMA. The MACD has given a fresh buy signal. The RSI reached near the 50 zone. On an hourly chart, the moving average ribbon is in an uptrend, and the MACD line is above the zero line. The Elder impulse system has formed a strong bullish bar. The KST is about to give a bullish signal. TSI has already given a buy signal. The RS Momentum is above 102 and showing strong momentum. In short, the stock has broken a tight range. A move above Rs 3098 is positive, and it can test Rs 3147. Maintain a stop loss at Rs 3070.
The stock closed above the 20DMA with a higher volume than the previous day. It closed at the prior minor high resistance, and eight-day tight consolidation resistance. The MACD has given a fresh buy signal. The RSI is above the prior swing high and moves above the 50 zone. It also closed at the Anchored VWAP resistance. The Elder impulse system has formed a bullish signal, while the KST is about to give a buy singal. The RRG RS and Momentum moved above the 100 zone. In short, the stock is about breakout a tight eight-day range. A move above Rs 3268 is positive and can test Rs 3372. Maintain a stop loss at Rs 3200.
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