Best intraday stocks to watch out for on 19-May-2023

Nifty declined sharply after hitting the 21-week high. For the last three days, it has been forming bearish candles, as the opening highs were not sustaining. 

On a weekly chart, it is almost forming a bearish engulfing candle. As we expected, the mean reversion is going on now. Currently, the Nifty is trading just 0.31 per cent above the 20DMA. We have already forecast that the Nifty will test the 20DMA. This short-term crucial moving average is placed at 18080. 

After forming a bearish engulfing candle on Tuesday, the Nifty formed lower low candles. The MACD has given a fresh sell signal. The RSI has received confirmation for its bearish divergence. The Elder impulse system has formed a bearish bar after March 24. There are enough signals available, which indicates that the market is due for a correction. The behaviour around the 20DMA (18079) is important now. This crucial support has held to contain the further fall. The 23.6 per cent retracement level is also at a similar level of 18074. If the Nifty closes below this support, the next level of support is at 50DMA of 17647. The index is in the lagging quadrant as the momentum and relative strength are below 100, compared to the broader market index Nifty 500, in RRG charts. For now, there are clear signals available for a possible reversal. Only a close above the prior day's high will be positive and all bearish views will be negated. Avoid the long positions for now. A decline below the level of 18079 will attract further selling pressure. 

ACC 

The recent breakout in the stock failed. After a series of indecisive bars, it closed at the previous pattern's support and swing low. It declined sharply below the 20 and 50DMAs. The stock is also below the moving average ribbon. The MACD has given a fresh sell signal on the zero line. The RSI has entered the bearish zone from a neutral zone. The Elder impulse system has formed strong bearish bars. The KST and the TSI have given fresh sell signals. It is also closed below the Anchored VWAP support and below the Ichimoku cloud. In short, the stock is on the verge of breakdown. A move below Rs 1710 is negative, and it can test Rs 1660. Maintain a stop loss at Rs 1750