Best intraday stocks to watch out for on August 16

The Nifty has reached an interesting level. It has tested level of 17724.65, and it is nearing the sloping trendline resistance.

Now, the question is, will it surpass and sustain above the 17730-17800? Let us examine the pros and cons of the current uptrend.

There is no doubt that the FII's buying interest has renewed after several months of selling pressure. The global market is also in a clear uptrend. The current rally is the longest one and registered the highest gain than the prior swings. Many stocks are breaking out of the base formations. Importantly, the market is in a confirmed uptrend, with no distribution day presence. The Nifty is trading above all key moving averages, and they are in an uptrend.

That said, before resuming an uptrend, the Nifty may retrace at least 23.6% to 38.2% from this resistance zone. The Nifty gained 16.73% in the current swing. It met the pattern targets too. It has achieved the downward channel, and the falling wedge measured targets. After meeting the targets, corrections or retracement are common. For the next few days, 18115 is the crucial level on the upside, and the 17440-17400 zone of support is important for the ongoing trend.

ONGC

The stock has just broken out of an 8-eight-day tight range with a high volume. It closed above the moving average ribbon along with the MACD line above the zero line. It closed 1.12% above the 50DMA and 5.01% above the 20DMA. It also closed above the Anchored VWAP resistance. The RS momentum is strong enough at 102.46, and the RRG RS is about to cross the 100 zone. The KST and the TSI indicators are in a bullish structure. The RSI closed above the prior high and near the strong bullish zone. In short, the stock broke the tight base. A move above Rs 139.50 is positive, and it can test Rs 148. Maintain a stop loss at Rs 134.

VEDL

The stock has broken out of an ascending triangle with a higher volume. The 20DMA has been acting as a support for the last few weeks. The Bollinger bands are narrowed and, in an uptrend, which indicates an impulsive move is on the cards. It also closed above the moving average ribbon along with the MACD line above the zero line. The histogram suggests an increased bullish momentum. The RSI entered the strong bullish zone. The Elder impulsive system has formed a bullish bar. The KST and the TSI indicators are also in the bullish setup. The RRG RS line is above 100, and the RS momentum is on 99.19, indicating the stock is about to enter the leading quadrant. It also closed above the Anchored VWAP resistance. In short, the stock broke the bullish pattern. A move above Rs 263 is positive, and it can test Rs 281. Maintain a stop loss at Rs 255.