Best intraday stocks to watch out for on September 08
Nifty on Wednesday opened with a gap down, but it managed to recover most of the losses by the end of the day.
It sustained above the opening low and is trading within the August 30 range. For the past five days, the Nifty oscillated in a range of about 300 points. Most of the price action was limited between 17472-764. The important technical development on Wednesday is, that the Nifty closed below the 20DMA. The Bollinger bands narrowed further. On the hourly chart, it opened below the moving average ribbon but failed to close above the ribbon, even after 100-point recovery. The momentum is completely flattened. As mentioned earlier, the ADX and +DMI are declining.
Nifty is going through a consolidation. The flattened 20DMA suggests the consolidation may continue for another two to three days. In any case, the 20DMA trends down, and in that case probability of a downside breakout is higher. A close below 17400 is negative for the market. The August 30 high of 17778 is crucial for the market for an uptrend to continue. The RRG momentum sharply declined, and the KST line is also falling is a worrying point for now. As weekly expiry on the cards, The volatility may further increase. It is better to cut down the position size and apply a neutral strategy.
The stock has broken the 12-day base with a massive volume. The stock decisively closed above the key moving averages. It closed 2.84% above the 20DMA. It closed above the moving average ribbon. The TSI and MACD are about to give a buy signal. The RS momentum has reached above the 100 zone. The MACD is about to give a bullish signal. RSI is coming out of a squeeze area and above the prior minor high. In short, the stock has registered a bullish breakout. A move above Rs 6775 is positive, and it can test Rs 7000. Maintain a stop loss at Rs 6610.
The stock has broken the descending triangle with a higher volume. It closed below the prior support, which is earlier resistance. It closed below the moving average ribbon along with the MACD line declining below the zero line, is a negative. The RSI closed below the prior low and in the bearish zone. The Elder impulse system has formed strong bearish bars. It closed on the Anchored VWAP support. The KST and RSI are in a bearish set up. It also declined below the 50DMA. The RRG RS and Momentum are below the 100 zone. In short, the stock broke the bearish pattern. A move below Rs 445 is negative, and it can test Rs 421. Maintain a stop loss at Rs 455.
Start Investing in 5 mins*
Rs. 20 Flat Per Order | 0% Brokerage
About the Author
DisclaimerInvestment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
Open Free Demat Account
By proceeding, you agree to the T&C.
Fill in your details below: