Best intraday stocks to watch out for on 10-May-2023

On Tuesday, Nifty opened with a positive gap and however, in the second half of trading session volatility kicked in as a result index erased most of its gains and ended flat.

Most of the sectoral indices also erased the gains. The Market breadth turned negative. Tuesday's price and volume data shows that the market recorded more selling volume. Still, there is no negative signal available currently. There is a serious negative divergence visible in RSI on an hourly chart. The hourly RSI declined below 60. A close below 40 will give bearish signals. The daily histogram has developed negative divergence, which is more powerful when the trend is over-extended. The hourly MACD has also developed a negative divergence and given a sell signal. 

As we expected, the Bank Nifty also traded within the previous two days' range. Tuesday's candle looks like a spinning top, and a close below low of 18229 will be a strong bearish signal. The spinning top candle signifies the exhaustion in the trend. Before moving further highs, the index may consolidate for some time. Tuesday 200 points range breakout was not sustained. A decisive and big bull candle is needed to negate Tuesday exhaustion. The upside is limited from now, and a reasonable correction is due. Be with a neutral view for time being. 

TCS 

The stock has recovered above the 20 and 50DMAs. It retraced above the 38.2% of the prior decline. It broke out of a double bottom pattern by closing above the prior minor swing high. The MACD line is above the zero line, and the RSI entered into the strong bullish zone. The Elder impulse system has formed a strong bullish bar. It closed above the Anchored VWAP resistance and in the Ichimoku cloud. The KST and the TSI have been in the bullish set-up. Volume is higher than the previous day. In short, the stock has broken out of a bullish pattern. A move above Rs 3295 is positive, and it can test Rs 3335. Maintain stop loss at Rs 3272. Above Rs 3335, continue with a trailing stop loss.