Best intraday stocks to watch out for on February 03

The Nifty has formed an inside bar, after a highly volatile day where it moved roughly about 600 points and closed flat with a negative bias.

On a weekly expiry day, the volatility subsided as the day progressed, given the event risk was over and nerves started to calm down.

Nifty is still trading below the short-term averages of 5 and 8EMAs. Thursday's price action is also limited to the first hour's range only. The weekly candle is forming in a strongly bearish mode. Even though the index closed flat, the breadth is negative and shows inherent weakness. The 5EMA is at 17676 and the 8EMA is at 17740, which will act as immediate resistance.

On the downside, the Budget day low of 17353 and the 200DMA 17293 zone will act as a crucial zone. The four-week indecisive zone was broken last week and still trading below the breakdown level. For at least another two weeks, 20DMA (17905) and the 200DMA (17293) zone may not break so easily. There may be some short covering bounce in due course. The RSI is below the 40 zone and the MACD shows bearish momentum. For the last four days, the Anchored VWAP has been acting as support on a closing basis and is currently at 17462. A close below this will be negative for the market.

Here are the intraday stocks to watch out for on February 3!

BANDHANBNK

The stock has broken down into a symmetrical triangle and a rectangle with a higher volume. It decisively closed below the moving average ribbon along with the MACD line below the zero line and has given a fresh bearish signal. The RSI is below the 40 zone and entered the bearish zone, sustaining below the Anchored VWAP. The Elder impulse system has formed strong bearish bars, while the TSI and KST indicators are in the bearish setup. In short, the stock has broken down the bearish patterns. A move below Rs 223.50 is negative, and it can test Rs 209. Maintain a stop loss at Rs 230.

HCL TECH

The stock closed at the prior pivot of a 7-week flat base. The moving average ribbon is in an uptrend, and it is trading above all key moving averages. It is above the 50% retracement level of the prior downtrend and closed above six day high. The MACD line is above the signal line and zero line, while the RSI is in a strong bullish zone. The Elder impulse system has formed a strong bullish bar and cleared the Anchored VWAP resistance. The KST and TSI are in a strong bullish setup. In short, the stock closed at the prior pivot. A move above Rs 1151 is positive, and it can test Rs 1195. Maintain a stop loss at Rs 1138.