Best intraday stocks to watch out for on July 26

Best intraday stocks to watch out for on July 26

The Nifty has formed a high wave like candle and closed negatively. It formed a lower high and lower low candle. However, the index recovered smartly from the day's low due to the recovery in Metal, IT and Banking stocks, but did not sustain till the end.

The index breadth is negative and the formation of high wave like candle at the confluence of swing high is not a good sign. It shows the exhaustion of a trend. On Monday, it tested the 20-week moving average. At the same time, the index closed within the Bollinger bands after three days, as we expected earlier. This is an indication that the market is entering a consolidation phase. If it trades below the 16752-794 zone, the consolidation will continue. It may test the gap area support of 16490 sooner or later.

M&M

The stock declined sharply and closed below the 20DMA with a higher volume. It closed below the prior day's doji candle low and confirmed its bearish implications. It took support at prior low. There is a serious negative divergence developed in the RSI. The MACD has given a fresh sell signal. The Elder impulse system has formed a strong bearish candle. The KST and TSI indicators have given fresh sell signals. In short, the stock has given a fresh bearish signal. A move below Rs 1131 is negative, and it can test Rs 1074. Maintain a stop loss at Rs 1155.

HDFCAMC

The stock closed below the prior swing low and below the 20DMA. For the past two days, it has been recording higher volume, which shows the distribution. It has also closed below the moving average ribbon. The MACD has given a fresh sell signal. The RSI also declined below the prior low and below the 50 zone. The stock also formed a lower high and lower low, this is an indication of a beginning of a downtrend. The Elder impulse system has formed two consecutive bearish bars. The KST and the TSI indicators also gave fresh sell signals. It also closed below the Anchored VWAP support. In short, the stock has given multiple bearish signals. A move below Rs 1860 is negative, and it can test Rs 1765. Maintain a stop loss at Rs 1885.