Best intraday stocks to watch out for on September 14
The Nifty cleared the resistance of 17792 resistance and it closed above the important psychological mark of 18000. It once again opened with a gap up and sustained its early gains till the end and closed near the day's high.
By closing above the prior high, Nifty has negated the previous bearish implications. It has also negated the probable double-top pattern. The RSI is in a strong bullish zone. The daily MACD has given a fresh buy signal by moving above the signal line. On the face of it, there are no weakness signs. The index is just arm's length from the prior swing high.
However, there are some cautions available at the current level. The index has moved higher, the RSI much below the previous high. This divergence needs confirmation. The daily trading ranges have shrunk. Indecisive small-range candles on intraday charts are not giving any strong entry signals. Except for the Metal index, none of the sector indexes gained much. The index is still in the lagging quadrant, as the RRG RS and momentum are below 100. The volume is still below the average. These are giving strong cautious signals. Now, a move above 18115 will continue the rally. Only a move below the 20DMA (17698) will give the first sign of reversal.
After a 62.5% rally, the stock consolidated for seven days. This tight-range breakout was rejected from the previous high and formed a shooting star doji or a gravestone doji. The decline from the high with a higher volume is indicating severe profit booking. The stock closed below the 8EMA support. The MACD has given a fresh sell signal. The RSI is in the overbought area. It is losing its momentum. The TSI has given a sell signal, and the KST is about to give a sell signal. In short, the stock failed to sustain at the higher levels and formed a bearish candle. A move below Rs 3350 is negative, and it can test Rs 3229. Maintain a stop loss at Rs 3400.
The stock closed below the prior lows and broke the rounding-top pattern with a higher volume. It has been trading below the 20DMA for the past four days. The 20DMA enters into a downtrend. It also closed below the 34EMA. Took support at 23.6% level of the prior up trend. The RSI declined to 51. The MACD line shows a negative signal, and the histogram shows an increased bearish momentum. The Elder impulse system has formed five consecutive bearish bars. The KST and TSI indicators are in the bearish phase. The stock is in the weakening quadrant. In short, the stock broke the crucial supports. A move below Rs 48270 is negative, and it can test Rs 46750. Maintain a stop loss at Rs 48800.
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