Best intraday stocks to watch out for on February 24

Nifty sustained below the 200EMA for the second day and the efforts to move above this crucial average have failed.

Due to expiry short-covering, the Nifty bounced 166 points in the first 45 minutes of the trade. After this massive surge, the index traded in a tight zone for the majority part of the trading session. But, during the last hour of selling pressure, after the expiry trades were over, it declined sharply by over 70 points in just a few minutes. Importantly, with the last two days of fall, the 200 EMA also entered into a fresh downtrend. This is a big negative for the market direction. Thursday was the fifth day of negative closing and the sixth day of bearish candle formation. This is the longest streak of declines since December 01. It may try to recover with a bounce toward 200EMA (17591).

As the Nifty has formed a long-legged small-body candle, a positive close Friday will hint at the recovery rally. If the Nifty can close above 17591, it can test 17777, which is 20DMA. But, on the downside, the 200DMA of 17361 is the last hope of support. If the monthly close is below this level, it will confirm the downtrend and it can retrace up to 61.8 per cent of the prior uptrend. Before this, in the 17300-370 zone, it may try to consolidate for the period. From now, the counter-trend rallies may extend up to 50% of the down move. From now, it is wise to wait for good shorting opportunities rather than buying opportunities. 

Here is the best intraday stocks to watch out for on Friday 

GAIL 

The stock broke the tight range with a massive volume and closed above the moving average ribbon and key short-term averages. It is 1.72% above the 50DMA and 2.57% beyond the 20DMA. The MACD has given a fresh buy signal while the RRG RS line and Momentum are moved above 100 and enter the leading quadrant. The RSI sharply came out of the squeeze area. The Elder impulse system has formed a strong bullish bar and the KST and TSI indicators have given a fresh bullish signal. It also cleared the Anchored VWAP resistance. In short, the stock broke the tight range with a massive volume. A move above Rs 98. is positive, and can test Rs 105. Maintain a stop loss at Rs 95.