Best intraday stocks to watch out for on March 29

On Tuesday, Nifty formed a bearish candle. But, after a positive opening, the index did not sustain at higher levels. A bearish candle after a doji candle indicates more pain is due.

For the last three days, the zone or 16913-18 has been acting as a support. In any case, the Nifty closes below this parallel support on a closing basis with an increased volume will lead to further fall. Importantly, for the last 14 days, the Nifty has been trading in a tight range of 17207 to 16913. Even though last week it declined below the range, the closing was within the range of 16917-938. For now, this two-week lower band is very critical for the market. The next major support is at the prior swing low of 16747, which is 200 points away.

The current consolidation is unique in many ways. The last two weeks of consolidation is around the 50% retracement level of the prior uptrend. Unless it closes above 17200, the bulls, may not have the strength for an upside reversal. With the current price pattern analysis, the downside is limited to 16747-582. An interesting fact is that the Nifty formed four consecutive monthly bearish candles after 1996 and 1998. As the fall is extended, expect some technical pullback next week. As the Nifty is also forming a bearish engulfing on a quarterly chart. To negate this most danger, the Nifty has to close above 17105, at least. For now, as the expiry is on, Volatility will increase further. Trade cautiously and avoid highly leveraged positions.

ASIAN PAINT

The stock closed at very crucial support and below the previous day's doji low. It also closed below the moving average ribbon, beneath the long-term average 200DMA. It is trading 0.31% below the 20DMA and 2.56% below the 50DMA. The MACD has given a fresh bearish signal below the zero line, while the RSI also closed below the rising trendline support. The Elder impulse system has formed four consecutive bearish bars in a tight range. It closed lower than the Anchored VWAP support. At the same time, it is below the Ichimoku cloud. The KST is about to give a sell signal. In short, the stock is about to end its counter-trend consolidation. A move below Rs 2777 is negative, and it can test Rs 2740. Maintain a stop loss at Rs 2800.