Best intraday stocks to watch out for on 17-April-2023

The equity markets rallied for another day with the support of banks. 

The Nifty made hanging man candle at the swing high which carries a higher high and higher low candle and closed above the prior day's high. Even though it formed an exhaustion candle pattern, no significant weakness is visible. Volumes were higher than the previous day. 

The Nifty has rallied 930 points or 5.50% from the March 28 low. Now the swing is nine days old. Generally, the counter-trend rallies in a downtrend do not exceed more than 8 days and 50 - 61.8% retracement levels. Currently, it is almost at the 50% retracement level, which is at a downtrend at 17858. 

As we forecasted earlier, the Nifty has almost reached its measured target. Now the question is will it extend up to the 61.8% retracement level of 18100? It is also precisely the left shoulder high. In such a case, the rally will extend another four trading sessions. The left shoulder high was formed in 13 sessions. The index is now 3.28% above the 20DMA, the longest since November 2022. Generally, the price tries to be near this moving average, which is nothing but mean reversion. The expansion of Bollinger bands also indicates that the rally is near its maximum level. Thursday's rally was mainly due to the short squeeze. The upside is limited to another 100-150 points, but the downside has more potential. Risk-reward is not favourable in the long side. But, wait for a decisive directional signal for shorting the market. 

Here is the best intraday stock to watch out for 

TECHM 

The stock has formed a triangle and closed below the six-day low. After indecisive moves, it has formed a strong bearish candle. It retraced 50% of the sharp upside move. It closed below the 20DMA and took support at 50DMA. Currently, it is 1.44% below the 20DMA. The MACD line is below the signal line and near the zero line, while the RSI is in the neutral zone and declining. The Elder impulse system has formed a strong bearish bar. It declined below the Anchored VWAP support. It closed in the Ichimoku cloud. The KST and TSI indicators have been in a bearish set-up. In short, the stock is on the verge of a breakdown. A move below Rs 1080 is negative, and it can test Rs 1040. Maintain a stop loss at Rs 1096.