Best intraday stocks to watch out for on 8-May-2023

Nifty erased all its previous day's gains and closed below the prior day's low. It has formed an inside bar and a shooting star candle on daily and weekly charts. 

The Nifty has registered a distribution day after many days. As we suspected in our previous write up, the market is showing exhaustion. A shooting star on a weekly time frame is not a good sign. It also closed below the weekly opening level, which is also a negative factor. It has come back to the neutral zone from an extremely overbought zone. The HDFC twins, lost over 5%, which is the major reason for Friday decline. Overall, the profit booking happened across the sectors. On an hourly chart, prior day's negative divergence in RSI has got the confirmation for its bearish implications, as it closed below the prior swing low. The volume declined on a weekly basis, even if we consider four-day week. For the last three days, volumes have been consistently declining. The MACD line is flattened, and the histogram shows a decline in momentum. The last hour's selling pressure in the broader shows the intensified profit booking.

 Overall, the market structure has changed to cautious. Only in case of a move above the Thursday high it is likely to be positive. On the downside, a reasonable correction is due. It may retrace at least 38.2% retracement level of the current swing which stands at17994. Below this, the 20DMA support is at 17812. We need to watch the market behaviour at this support zone. For, now take out the profits on the table. 

IGL 

The stock closed below the prior minor lows. It formed a lower high and registered a breakdown of a double top pattern on a lower time frame. The declined below the 20DMA. The MACD has given a fresh sell signal. The KST and TSI indicators also gave a fresh bearish signal. The RSI is declined into the neutral zone from a strong bullish zone. The Elder impulse system has formed a bearish bar. On an hourly chart, the stock is below the moving average ribbon, and the MACD line is also below the zero line, which is bearish. In short, the stock closed below the key support and broke a base. A move below Rs 483 is negative, and it can test Rs 465. Maintain a stop loss at Rs 490.