Best intraday stocks to watch out for on 12-May-2023

Nifty opened on a strong note on Monday, formed a strong bullish candle. 

By trading above the previous week's high, it negated the weekly shooting star's bearish implications. After Monday's strong bullish candle, the momentum subsidised, and it is evident from the daily range. For all remaining three days, it opened with positive gaps, but it did not sustain. On Wednesday, it formed a Dragonfly doji. Though it opened with a positive gap on Thursday again, not sustained at the higher levels and formed a bearish candle. Earlier, several bearish patterns failed without confirmation. Unless it gets any confirmation by closing below Thursday’s low this time, we cannot assume the weakness. 

The momentum is certainly flat as the histogram further declines. All the sectors' indices closed on a flat note, is also an indication that the broader market has also lost momentum. On the weekly derivative expiry day, the intraday range was limited to just 119 points. The RSI is also slightly negative on Thursday. The Elder impulse system formed neutral bars for three days, showing waning momentum. The Bollinger bands suggest that the trend is over-extended. The CCI indicator shows clear topping formation in the index. On an hourly chart, the index has formed lower highs and lows. As it formed a bearish candle with an increased volume, it shows a profit booking or a smart distribution. It is better to stay cautious with light position size. On the weekend, Karnataka state election results are scheduled, and traders may be willing to unwind the positions to avoid the event risk. 

ZYDUSLIFE 

After two bearish and indecisive candles, the stock has formed a strong bearish candle. It declined sharply below the 20DMA. The higher volume shows the distribution. The MACD is showing strong bearish momentum as the histogram increases. The RSI shifted its range into the neutral zone as it declined from the strong bullish zone. The Elder impulse system has formed a strong bearish bar. The KST and the TSI indicators have given fresh sell signals. In short, the stock has given weakening signals. A move below Rs 514 is negative, and it can test Rs 502. Maintain a stop loss at Rs 522.