Best intraday stocks to watch out for on September 12
Here are some exciting set-ups to watch for on Monday.
There are important technical developments that occurred during the last week. The Nifty has witnessed a 'Golden Crossover"; the 50DMA crossed the 200 DMA. This is an indication of a long-term bullishness. It also closed above the August 30 high and broke out of the seven-day tight range.
More importantly, on a weekly line chart, the Nifty closed above the prior swing high close which is a bullish breakout. It has also closed above the two-week high. The index has cleared another crucial resistance of a sloping trendline drawn from the October 2021 high by connecting the successive swing highs. Although the Nifty oscillated in a range at the beginning of the week, it gained momentum in the latter part of the week. It broke the key resistance of 17778-800. With these technical breakouts, the Nifty is showing strength with a bullish bias and getting ready for a strong rally.
Apart from these strong bullish signals, there are certain cautious signals also evidently visible. On Friday, it formed a bearish belt hold or open high candle at a swing high. This is not a good sign. All the prior swing has formed bearish candles. The cash volumes are still below the average. Another important aspect is that the RRG Relative Strength is still declining.
The stock broke a 14-day tight base with a massive volume. It has formed a strong bullish bar after two indecisive candles. it closed above the moving average ribbon and short averages. The MACD line is about to move above the signal line. The RSI is at the 60 zone and may move into a strong bullish zone. The +DMI is above the -DMI. The Mansfield Relative strength indicator entered above the zero line, and the RS line is improving. The Elder impulse system has formed a strong bullish bar. It is trading above the Anchored VWAP resistance. In short, the stock broke the tight range base. A move above Rs 3755 is positive and can test the prior high of Rs 3945. Maintain a stop loss at Rs 3680.
The stock has broken a 17-month-long consolidation with high volume. In the month of April, it broke the same rectangle but did not sustain above the breakout. Currently, above all key moving averages, all of them are in an uptrend. The MACD is showing strong momentum while the RSI is in a strong bullish zone. The ADX shows a solid strength in the trend. The RRG RS and Momentum are in the above 100 and in a leading quadrant. It is gaining momentum too. The Elder impulse system has formed strong bullish bars. It is also above the Anchored VWAP resistance. In short, it has broken a long consolidation, which may result in an impulsive move on the upside. A move above Rs 907 is positive, and it can test Rs 1005. Maintain a stop loss below the breakout level of Rs 884.
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