Best intraday stocks to watch out for on September 23

Nifty has formed another lower low and a long-legged or a high wave-like candle. It closed below the 20-DMA. However, during the day, it recovered from the rising trend line support. Federal Reserve’s 75-bps interest rate hikes and Powell’s hard commentary, signalling tough times, made the market participants jittery across the globe. The recovery in US Futures has led to intraday recovery from the lower levels in the Indian benchmark indices.

On the weekly chart, Nifty is forming a shooting kind of a pattern. The 34-EMA is acting as strong support for now. The rising trend line drawn from June low also acted as a support today. During this consolidation, the 34-EMA acted as crucial support not once but thrice and currently, stands at 17,532. Nifty also registered a distribution day. Currently, Nifty holds four distribution days. Any further increase in the distribution will confirm the trend reversal.

As it formed an indecisive candle within the range, the zone of 17,400-429 is crucial for the consolidation to continue. Below this zone, the prior swing lows that are placed at the level of 17,345 and 17,166, will act as strong supports. In any case, if Nifty closes below these levels, the double top breakdown with long-term bearish implications will take place.

HINDUNILVR

The stock closed at a prior pivot level with the highest volume. It is trading above the key moving averages. It is 3.67% above the 50DMA and 3.93% above the 20DMA. The MACD and TSI have given fresh buy signals. The KST is also about to give a bullish signal. The Elder impulse system has formed four consecutive bullish bars. It cleared the Anchored VWAP resistance. The RS momentum is above the 100 zone. The Relative Strength line is rising. The stock is in an improving quadrant in RRG charts. In short, the stock is ready to register a bullish breakout. A move above Rs 2700 is positive, and it can test Rs 2750 and Rs 2790. Maintain a stop loss at Rs 2645.

HDFCBANK 

The stock decisively closed below the 20DMA with a higher volume than the previous day. It also closed below the recent lows. It declined into the moving average ribbon. The 50DMA support is at 2.28% away. The Elder impulse system has formed a strong bearish bar. The MACD and TSI have given fresh sell signals. The RRG chart shows that the stock is losing its momentum. The RSI has confirmed the implications of bearish divergence by a decline below the prior low, and it is below the 50 zone. It also declined below the first leg of the trend line support. In short, the stock is lost its bullish momentum. A move below Rs 1480 is negative, and it can test Rs 1440. Maintain a stop loss at Rs 1492.