Best intraday stocks to watch out for on October 04

The Nifty declined over 200 points and erased most of Friday's gains. It formed a dark cloud cover candle, which is bearish.

As we suspected, Friday's bounce is just event-based. The index declined below the 200DMA again and the intraday bounce of 100 points did not sustain while selling pressure intensified. The fact is, Friday's bullish engulfing candle failed to get a confirmation candle for its implications. On an hourly chart, the index closed below the moving average ribbon, and the MACD line is below the zero line. The MACD is about to give a fresh sell signal and the daily RSI once again declined below the 40 zone. As the bear domination renewed, the trend strength index ADX rose to over 24.1, which signifies the strong downtrend in place.

Nifty failed to move into the September 26 gap area. Now, this gap area zone of 17291-196 will act as a crucial resistance. Only by filling the gap, the Nifty will test 17500 on the upside. As the Nifty also formed an inside bar, Friday's low of 16747 will act as a support for now. A close below 16747 will test the immediate support at 16639, and later it can fall up to 16296. The volatility will increase further from now. It is better to avoid highly leveraged positions.

AMARAJABAT

The stock closed at the lowest level in the last five days of tight consolidation. It formed a big bearish candle. The 8EMA acted as strong resistance. Currently, it is trading 4.87% below the 50DMA and 6.07% below the 20DMA. The KST and TSI have been in the bearish setup for a long period. RSI is in the bearish zone, and the MACD histogram shows a strong bearish momentum. Its Relative strength is very poor. Sustaining below the Anchored VWAP. Expanded Bollinger bands show further scope to fall. In short, the stock is at the lowest level of a tight range. A move below Rs 480 is negative, and it can test Rs 468. Maintain a stop loss at Rs 486.

ZYDUSLIFE

The stock broke the Stage-1 base decisively with a massive volume. Along with the price, its relative strength line is also at a new high. It is trading above all key moving averages. The moving average ribbon is in an uptrend. The KST has given a fresh buy signal while the MACD line is above the zero line, and the histogram shows a strong bullish strength. The Elder impulse system has formed strong bullish bars and is above the Anchored VWAP resistance above the prior pivot. In short, the stock has broken out of consolidation with a massive volume. A move above Rs 410 is positive, and it can test Rs 454. Maintain a stop loss at Rs 400.