Best intraday stocks to watch out for on October 17

Best intraday stocks to watch out for on October 17

The Nifty opened with a 308 points positive gap and sustained most of the gains. It also opened above the 20 and 50DMAs, but at the end of the day, it closed below these crucial moving averages. The weekly price action is limited to the previous week's range and hence it formed an inside bar. As the Nifty once again back into the range, consolidation will continue further. The previous week's range and the 50 and 200DMA levels are crucial for now. In the post-lunch session, the index declined sharply and closed near the day's low. The sharp decline in the afternoon session has raised doubts about the positive strength. Though it has not filled the gap, after a 1%, the MACD has not given any bullish signals. The Relative Strength Index is still below the 50 zone. Importantly, all the sectoral indices also closed below the opening levels. The negative market breadth is also supporting the doubts on the positive gap. Currently, the price structure is a bearish flag pattern. But in any case, if it closes above 17429, it will result into a double bottom breakout. For now, 17429 will be a key resistance for the near term. A move below 17000 will increase the momentum on the downside.

TRENT

The stock is forming lower highs and lower lows. It has broken the symmetrical triangle with the higher volume. It closed below the moving average ribbon. It also declined below the 20 and 50DMAs. Currently, it is 3.26% below the 20DMA. The MACD is below the signal line and about to go below the zero line. RSI is at 43.99 and near the bearish zone. The Elder impulse system has formed four consecutive strong bearish bars. The KST and the TSI indicators have been in a bearish set-up. In short, the stock is broken the bearish pattern and is at crucial parallel support. A move below Rs.1370 is negative, and it can test Rs.1330, which Anchored VWAP support. Maintain a stop loss at Rs.1395.

M&M

The stock is forming a topping formation. It is in the process of forming a head and shoulder and descending triangle. The stock declined below the key moving averages. The 20DMA and 50DMAs are acting as strong resistance. It is below the 34EMA along with the MACD line below the zero line. The RSI is declining and near the bearish zone. It formed a bearish bar in the Elder impulse system. The KST and TSI indicators are already in the bearish set-up. The RRG RS and Momentum are below 100 and declining. In short, the stock is forming at the toping pattern and about to break down. A move below Rs.1218 is negative, and it can test Rs.1180. Maintain a stop loss at Rs.1245.