Best intraday stocks to watch out for on January 9

Benchmark index declined for the third straight session on Friday.

Now, the 10-week average of 18252 and 17774 is the zone, and the Nifty has to clear for directional bias. In any case, if the Nifty declines below 17774, the index will take first support at 17472, which is a 38.2 per cent retracement level of the June-November rally. Many sectors are showing losing relative strength and momentum, and the market lacks leading sectors. The earnings season will begin, and the expectations are not great this time, it would be interesting to see how earning season unfolds.

TCS

Before the earnings, the stock broke the crucial supports. It closed below the rising trendline and also closed below the 20DMA and moving average ribbon. Currently, it is 1.76% below the 20DMA and 2.6% below the 50DMA. The MACD has given a fresh sell signal. The Elder impulse system has formed a huge bearish bar. The higher volume indicates a strong distribution. It also declined below the Anchored VWAP support. The RSI also declined below the support and near the bearish zone. The price pattern looks like the bearish flag breakdown. In short, the stock is below the support just before the earnings. A move below Rs 3210 is negative, and it can test RS 3160. Maintain a strict stop loss at Rs 3250.

ITC

The stock closed at the resistance of a sloping trend line. It formed an indecisive candle doji and closed at the 20 and 50DMA resistance. It is 0.22% below the 20DMA and 1.84% below the 50DMA. It has also closed in the moving average ribbon. The MACD has given a fresh buy signal, while the KST, and TSI also gave bullish signals. The Elder impulse system has formed a bullish bar. The volumes have been higher for the last two days and the KST and the TSI indicators just entered the bullish set-up. It closed at the Anchored VWAP resistance. In short, the stock is at critical resistance. A move above Rs 337 is positive, and it can test the prior high of Rs 347. Maintain a stop loss at Rs 332.