Best intraday stocks to watch out for on February 27

Nifty closed below the rising trendline, which is drawn by connecting March 2020 lows and June 2022 lows. As we expected, this is the first sign of long-term weakness.

The benchmark index failed to move the prior day's high and formed a lower high and low candle. The weekly range increased by 583 points compared to 415 points last week. It registered one of the biggest falls in recent times. The week opened with a gap down, and the 50 DMA acted as resistance. Now it has closed below all the important short and long-term averages. It closed below the 200 EMA. Importantly all moving averages are in the downtrend.

The 200 DMA support is placed at 17368, which is also near the Budget day low of 17353. The 50-week average is also at the same place at 17339, which is like to be a crucial support zone. The index must bounce from the 17368-421 zone of support. Otherwise, it is going to be under the complete bear grip. A short-term bounce towards the Wednesday gap area or 20DMA 17770-800 zone is likely.

On the indicators front, the Weekly RSI (45.55)has made a new low, which is bearish. The daily RSI (34.92) has also entered into the strong bearish zone, while the weekly and daily MACD shows an increased bearish momentum. The JDK-RS-Momentum is sustaining below 100, and the Relative Strength has been declining for the last week. Importantly, the Elder impulse system has formed five successive bearish bars. The KST and the TSI are in the bearish setup and declined below the Anchored VWAP support. Hence, the overall set-up points towards a bearish bias. Sell on rallies would be the mantra for the day.

Here is the best intraday stock to watch out for today 

HDFC BANK

The stock broke the upward channel. For the last two days, higher volume recording shows fresh selling pressure. It is trading below all key moving averages and the moving average ribbon is in a downtrend. Trading 0.84% below the 50DMA and 3.12% below the 20DMA. The Elder impulse system has formed a series of bearish bars, while the KST and the TSI indicators are in the bearish set-up. It is about to close below the Ichimoku cloud, just holding on to the Anchored VWAP support. MACD line declined to below zero line, while the RSI entered the strong bearish zone. In short, the stock is technically weak and broke the support. A move below Rs 1582 is negative, and it can test Rs 1560.