Best intraday stocks to watch out for on September 16
On Thursday, the Nifty declined over 200 points from the day’s high and settled below the 17,900 mark with a loss of 0.70%.
For the last three days, the efforts to cross 18,100 have failed. Though the price is above the 17,704 level i.e. the 20-DMA yet the latter has been turned down, which is negative. On the weekly chart, Nifty has formed a long-legged small body candle. It resembles the bearish candle made in the second week of August. The indecisiveness at the swing high is not a good sign. The index formed a dark cloud cover-like candle, which is negative for the index. It is holding the 8-EMA support for the day. The MACD line is moving flat for the last three days. The negative divergence in RSI is clearly visible now as the index is struggling to move higher.
On the hourly chart, the index failed to close above the previous bar's high, which is also a negative factor. The broader market and the index breadth are negative. The sharp decline with higher volume indicates that distribution is taking place. In any case, if the index closes below 17,704, it will register a failed breakout and it will lead to the formation of a serious bearish candle on the weekly chart. It is better to avoid aggressive positions at the current levels.
The stock has broken an ascending triangle with a higher volume. It formed a new pivot. It is above the prior highs and Anchored VWAP, and also trading above the moving averages. MACD has given a fresh buy signal. The RSI is above the prior high and in the strong bullish zone. It formed a strong bullish candle on the Elder impulse system. The KST and TSI have given a bullish signal. In short, the stock has registered a bullish breakout with a higher volume. A move above Rs 9234 is positive, and it can test Rs 9600. Maintain a stop loss at Rs 9250.
The stock has broken the key supports. It violated the parallel and rising trendline support. It has broken the head and shoulders kind of pattern with higher volume. For the last two days, the volumes are massive recording is a sign of breakdown with a distribution. It is also below all short and long-term averages. The MACD has given a fresh sell signal. RSI entered the bearish zone. It formed big bearish bars on the Elder impulse system. It declined below the Anchored VWAP. The KST and TSI are already in bearish mode. In short, the stock broke the key supports. A move below Rs 1432 is negative, and it can test Rs1367. Maintain a stop loss at Rs 1448.
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