Best intraday stock to watch out for on 24-March-2023

As we expected post the event, volatility increased and so did the daily range of Nifty as Nifty records a range of 160 points on Thursday, which was highest since March 20. The Nifty opened with a gap down and sharply bounced towards the 17200 mark. However, soon after reclaiming the 17200 mark and nearing to the prior trading session high, the sellers came into the picture and sell on rise strategy was adopted. As a result, the index closed below the 17100 mark, down by nearly 130 points from the day’s high, the 17205 level.  

On the daily chart, it formed a shooting star candle after a hanging man. It failed to move above the prior day's high and closed below the previous day's low, which indicates weakness in the bounce. The selling pressure was severe in the Bank Nifty as it declined by over 400 points in just one hour. The Nifty declined below the 5EMA again. RSI is back to the below-40 zone. Currently, the Nifty is trading about 1.65 per cent below the 20DMA. The 38.2 per cent retracement level acted as resistance for the second consecutive. Unless the 17,240 level is taken out decisively, we cannot expect the market to reverse on the upside. Moreover, Thursday’s fall also confirmed that the hanging man got its bearish implications by closing below it. On an hourly chart, the index closed below the moving average ribbon and the MACD gave the sell signal. Now it is better to avoid a long position as long as it trades below the 17200 level. On the downside, it can test the previous low. Adopt a cautious approach and don’t take aggressive position. 

VEDL 

The stock has broken down the counter-trend consolidation pattern, bearish pennant, with high Volume. After the Doji candle at the resistance, it formed a very big bearish bar. It is below all key moving averages. The moving average ribbon is in a downtrend. It is 9.72% below the 50DMA and 4.2% below the 20DMA. The Elder impulse system has formed a strong bearish bar. It also broke the Anchored VWAP support. The KST and the TSI also have been in the bearish set-up. The MACD is about to give the bearish signal. RSI is in the bearish zone. In short, the stock broke the crucial support. A move below Rs.270 is negative, and it can test Rs. 255. Maintain a stop loss at Rs.276.