Best intraday stocks to watch out for on 2-May-2023

The Nifty rallied for all five days in the week and it managed to reclaim its important psychological mark of 18000. As it has reclaimed its important psychological level of 18000, it has met our forecasted target of 18000-18100. 

 Before analysing the Nifty, we need to focus on the India VIX, which has declined below 11. This is not a good sign for a trending market. Low VIX may lead to a sharp reversal in an unexpected manner as low VIX indicates complacency among the market participants. Currently, the VIX is below the December 2019 low. This low level of VI has led to several bear attacks in the past. It is not the case for the Indian market; all the world markets experienced a similar pattern. All the market tops formed on a low VIX. It is advised not to be complacent about the positions. Traders must be cautious and vigilant and prepare for possible changes in the market direction. 

The benchmark indices met the pattern target. The Nifty reached the 61.8% retracement level (18111) of the prior downtrend. It also reached the previous swing high of 18134. It is also extended by 50% of the recent swings. The RSI has reached an overbought zone. Market moves may be euphoric, but staying cautious and protecting the profits and capital is more important for traders. If the Nifty extends its rally beyond 18134, it can test the level of 18300 followed by the level of 18503. These are the maximum level we can forecast at this juncture. But Only a decline below the previous day's low with high volume indicates the reversal. Until then, avoid short positions, and stay cautiously optimistic. 

SBI 

The stock has broken out of a two-month base. It also broke the double bottom pattern. It is trading above all moving averages, and they are in the uptrend. The 20DMA crossed above 50DMA, which is short-term bullish. It is 7.23% above the 20DMA. The MACD line is above the signal and has zero lines. The RSI is in a strong bullish zone. It cleared the Anchored VWAP resistance. It is also above the Ichimoku cloud. The Elder impulse system has formed a strong bullish bar. The KST and the TSI have been in a strong bullish set-up. In short, the has broken out of a bullish pattern. A move above Rs 577 is positive, and it can test Rs 605. Maintain a stop loss at Rs 565.