Best intraday stocks to watch out for on September 07

For Wednesday, wait till a close above 17778 on an hourly chart or an hourly close below 17626. Either side breakout will be a sharper one.

Even after four trading sessions, the Nifty is still trading in the last Wednesday's range. It formed a higher high but with an indecisive candle. The 20DMA acted as a support for the day and closed flat without giving any directional clues. The index and broader market breadth turned negative. The last five days of price action has formed higher lows, which is a positive sign.

The level of 17778 is crucial resistance to cross for an uptrend to continue. The Bollinger bands were also flattened and indicating the sideways action. The positive factor is that the index is trading above the 20DMA. The RSI further declined below the 60 zone. MACD line is also declining, and the histogram shows a flat momentum. A bullish flag like pattern breakout was not sustained till the end of the day. The prolonged consolidations lead to impulsive moves. We may see a breakout on either side in a day or two.

On an hourly chart, the moving average ribbon also acted as support for the day. But the MACD line about to cross under the signal line is an early sign of caution.

TATA POWER

The stock has broken out of a long consolidation with a massive volume. It closed above all short and medium-term averages. It also closed above the moving average ribbon. The MACD has given a fresh buy signal. The RSI is in a strong bullish zone. The Elder impulse system has formed strong bullish bars. The KST and TSI indicators are in the bullish setup. The RRG RS and Momentum are above the 100 zone. It also closed above the Anchored VWAP resistance decisively. In short, the stock has registered a bullish breakout. A move above Rs 247 is positive, and it can test Rs 274. Maintain a stop loss at Rs 240. 

ICICIGI

The stock closed at the rising trendline and below its prior low. It has declined below the moving average ribbon and 20DMA, and with a massive volume. The Elder impulse system has formed bearish candles on the daily chart. The MACD is below the signal line, and the histogram shows an increase in bearish momentum. The RSI is below the prior low. RRG RS and Momentum have declined below the 100 zone. The KST and TSI indicators are in the bearish setup. In short, the stock closed at a crucial level. A move below Rs 1220 is negative and it can test Rs 1184. Maintain a stop loss at Rs 1245.