Best intraday stocks to watch out for on February 16

Nifty has successfully closed above the Budget day high after 13 sessions reaching the sloping channel resistance line. It closed above the 20DMA for the second successive day. 

 The strong bullish bar on the second day is has boosted the positive sentiments. Interestingly, the Nifty also closed above the 20-week average, which is positive for the trend. The index opened on a negative note, and it was sharply up in the late afternoon. It reached near the 50DMA (18057). The 18034-57 zone will be crucial resistance for tomorrow. The MACD shows increased bullish momentum, and the RSI is near the bullish zone.

As the weekly expiry is on the cards, wild and erratic price movement can be seen. Lower Nifty futures volume is another worry. Open interest is almost flat. The Nifty PCR increased to 1.26, which is a short-term negative. As the Nifty has registered a breakout of a range, be with a positive bias, and keep in mind the 50DMA resistance. Let us hope the market may test 18265 if it sustains above the 50DMA.

INDIGO

The stock closed below the prior parallel low and below the key moving averages. The decline in a high volume indicates the distribution or selling pressure. It is trading below all key moving averages. The moving average ribbon turned into a downtrend. It is 3.4% below the 50DMA and 4.71% below the 20DMA. The KST and the TSI indicators in the bearish set-up, while the Elder impulse system has formed strong bearish bars. It also declined below the Anchored VWAP. The RSI is below 40 and entered the bearish zone. MACD also declined below the zero line, indicating further weakness. In short, the stock broke the topping formation. A move below Rs 1986 is negative, and it can test Rs 1928. Maintain a stop loss at Rs 2007.

SHREECEM 

The stock closed at three-month parallel resistances and at a new pivot. It formed a strong bullish bar and registered a new high close. All the short, and long-term averages are in the uptrend. It is trading 4.79% above the 20DMA and 4.41% above the 50DMA. The Elder impulse system has formed consecutive bullish bars. It cleared the Anchored VWAP resistance. RSI is at the doorstep of a strong bullish zone. MACD shows improved bullish momentum. The KST and TSI indicators have been in a bullish set-up. In short, the stock is ready to register a strong breakout. A move above Rs 24734 is positive, and it can test Rs 25550. Maintain a stop loss at Rs 24580.