Best intraday stocks to watch out for on September 05

Technically, the Nifty has formed two consecutive inside bars. After 600 points move, the two-day consolidation is below the 20DMA. 

 The index witnessed a failed breakout in the previous week as a result it has given an initial reversal sign. Formation of a shooting star candle and confirmation for the bearish implications by closing below the shooting star low last week is an ominous sign. The RSI declined to a neutral zone. The declining MACD and KST lines on all time frames are also showing a loss of momentum. We keep mentioning declining Relative Strength as it shows the underperformance of the benchmark index compared to the broader market. 

As the index is already below the 20DMA for the last two days, the probability is on the downside. For a decisive breakdown, it must close below 17329. A big gap down and negative close at the beginning of the week would act as a confirmation for reversal. 

The 17800-18115 is a crucial resistance zone. A weekly close above this zone will open the gates to the new high. 

VOLTAS 

The stock is trading in a tight range for over two months. The stock formed a strong bearish bar and closed at prior parallel lows. It is below all short and medium-term averages. The 20DMA is in a downtrend. It decisively closed below the 50DMA. The MACD has given a sell signal and closed below the zero line after oscillating around it for a long period. The RSI is also below the squeeze area. The recent price action has formed a head and shoulder pattern. The Elder impulse system also formed bearish bars. The KST and TSI indicators are also in a bearish setup. Trading below the Anchored VWAP. In short, the stock is a crucial support. A move below Rs 970 is negative, and it can test Rs 955. Maintain a stop loss at Rs 980.

VEDL 

The stock broke the rising wedge with higher volume than the previous day. After trading in a tight range, it closed below the 20DMA. The MACD has given a fresh sell signal. It is also below the 50EMA. The RSI closed below the prior low and below 50 zone. The elder impulse system has formed a strong bearish bar. The KST and TSI have given fresh sell signals. The RRG RS and Momentum is not showing any strength. In short, the stock broke the bearish pattern. A move below Rs 257 is negative, and it can test Rs 245. Maintain a stop loss at Rs 262.