Best intraday stocks to watch out for on October 18

Equities continued to rally for the second successive day.

On Monday, Nifty opened with a gap down and recovered within a few minutes of trade. It closed above the 50DMA and the 20DMA but failed to move above the previous day's high. The MACD has given a bullish signal by crossing the signal line. The weekly and daily Relative Strength index also closed above the prior high and above the 50 zone, which is a positive sign for the market. However, the concerns on the bullish remain. The volume is less than average and much below Friday's volume.

Even the Nifty futures open interest is very slightly gone up. The Nifty is yet to make a higher high, though it has made ascending bottoms. On the hourly chart, the index has recovered like a V shape. Generally, the V shape recoveries need a strong follow-through day. The negative market breadth is another worry for the directional bias. On a strong bullish day, the histogram is flat, indicating that the momentum is not yet picked up on the upside. Banks and Financial Services stocks led the rally on Monday, in particular the heavy-weight SBI.

SYNGENE

The stock broke the key support and closed at a new 52-week low. It is trading all the key long and short-term moving averages. It is below the moving average ribbon, and the MACD is below the zero line and given a fresh sell signal. The RSI is in a bearish zone. The -DMI is above the +DMI. It is also below the Anchored VWAP support. Three strong bearish bars in the Elder impulse system. In short, the stock broke the key supports. A move below Rs.538 is negative and can test Rs 521. Maintain a stop loss at Rs.545.

SBI

The stock has broken out of double bottom kind of pattern with higher volume. It closed above the 20 and 50DMAs. It is also above the moving average ribbon. The MACD is about to give a fresh buy signal. The RSI closed above the 50 zone, while the Elder impulse system has formed a strong bullish bar. It also closed above the Anchored VWAP resistance. In short, the stock has registered a bullish breakout. A move above Rs 544 is positive and can test Rs 555. Maintain a stop loss at Rs 536.