Best intraday stocks to watch out for on September 06

For the third consecutive day, the Nifty traded within the last Wednesday's range. At the same time, the last three hours of price action have formed indecisive and bearish bars, which is a sign of caution now.

The trading range was limited to last Thursday's action. These series of inside bars are not giving any decisive direction. Only in case of a break above 17777 or below the 17400 level, Nifty will be able to find a directional trade. Out of seven hourly bars on Monday, five were bearish in nature or indecisive. The volume was the lowest since August 17. The Nifty formed a bull candle within the range and closed at the sloping trend line resistance. The level of 17800-18115 zone will be crucial for an uptrend to continue. It must close below 17400-329 for a bearish reversal. As we expected, the consolidation might continue for another day. Either side breakout will lead to an impulsive on either side. For now, be stock specific, which has stronger Relative Strength.

BAJAJ-AUTO

The stock sharply declined with higher volume, showing a strong distribution. After trading in a tight range, it broke the support. It decisively closed below the 20DMA and moving average ribbon. The MACD histogram shows an increased bearish momentum. The RSI is also below the prior low. The negative divergence finally gets confirmation. The Elder impulse system has formed a strong bearish bar. The KST and TSI are in a strong bearish setup. In short, it is coming down from a topping formation. A move below Rs 3950 is negative, and it can test Rs 3847. Maintain a stop loss at Rs 4000.

AMARAJABAT

The stock has broken a bottom formation and inverted head and shoulders kind of a pattern. The 34EMA acted as strong support recently. The MACD has given a fresh buy signal. The RSI is in a strong bullish zone. The Massive volumes show the buying interest in the stock. Currently, it is 5.36% above the 20DMA and 10.5% above the 50DMA. The TSI has given a fresh buy signal. The RRG RS and momentum are above the 100 zone and show an outperformance. The Elder impulse system has formed a very strong bullish bar. In short, the stock registered a bullish breakout. A move above Rs 540 is positive, and it can test Rs 566. Maintain a stop loss at Rs 530.