Technical stocks to watch out for Intraday
Escorts Ltd: After registering a low of Rs 526.05, the stock has marked the sequence of higher tops and higher bottoms. The stock has witnessed almost 130 per cent upside in 84 trading sessions. However, in the daily timeframe, the stock has shown the first sign of exhaustion, as it has formed a reversal dark cloud cover candlestick pattern. The dark cloud cover is a bearish reversal candlestick pattern, which usually takes place at the top of an uptrend. Among the momentum indicators, the 14-period daily RSI cooled off after touching 72-74 zones and at present, it is quoting at 65.23. The RSI is trading below its nine-day average and it is in a falling mode, which indicates a further downside momentum. Moreover, the Ichimoku chart on the 30-minute timeframe is clearly giving a negative view, as it closed below the KS and TS lines. Another important aspect is that the KS line crossed under the TS line, which is also a bearish sign. Going ahead, if the stock slips below Thursday’s session low of Rs 1,160.30 and trades convincingly below this level, then there is a high probability that Thursday’s high point of Rs 1,210 would become a temporary top for the stock.
Essel Propack Ltd: Considering the daily timeframe, the stock has given a symmetrical triangle pattern breakout. This breakout is confirmed by above 50-day average volumes. With this triangle breakout, the ADX, which shows the strength of the trend, turned upside and moved above the -DI. Additionally, the stock has formed an opening bullish Marubozu candlestick pattern on the breakout day, which indicates an extreme bullishness. Interestingly, the daily RSI has given downward sloping trendline breakout, which is also a bullish sign. Considering all the above factors, we expect the bias to remain positive as long as the stock sustains above Thursday’s low of Rs 191 level. On the higher side, the level of Rs 215, followed by Rs 226, would be seen as the next resistance zone for the stock.
Kotak Mahindra Bank Ltd: Considering the daily timeframe, the stock has been trading in an upward sloping channel since March 2020. Currently, the stock has given a downward sloping trendline breakout along with relatively higher volumes. Along with this trendline breakout, the stock has also managed to close above its crucial 100-day EMA level. The leading indicator, 14-period daily RSI, is currently quoting at 57.52 and it is in a rising trajectory. Going ahead, we expect the stock to continue its positive momentum as long as it sustains above Thursday’s low of Rs 1,335.30 level.
Motilal Oswal Financial Services Ltd: The stock has formed a reversal dark cloud cover candlestick pattern as on July 10, 2020, and thereafter, witnessed a correction. The correction is halted near 38.2 per cent retracement level of its prior upward move (Rs 521.35-Rs 730) and coincides with the 13-day EMA level. On Thursday, the stock has given a bullish pennant pattern breakout along with a strong volume. The positive crossover on the daily RSI supports the overall price structure. Further, the average directional index (ADX), which shows the trend strength, is as high as 45.03 on a daily chart and 26.67 on a weekly chart. Generally, above 25 levels is considered as a strong trend. In both the timeframes, the stock is meeting the criteria. Hence, we expect positive momentum in the stocks for the next couple of trading sessions. Talking purely about the trading levels, the zone of Rs 665-Rs 660 level is a crucial support area and the level of Rs 730-Rs 733 is an immediate resistance zone.
NMDC Ltd: Considering the daily timeframe, the stock is trading in a contracting consolidation since the last 17 trading sessions. Due to a narrow range, the Bollinger Bands have contracted, which indicates an early signal of a bigger move. Also, in the daily timeframe, the stock is on the verge of giving a breakout of the downward sloping trendline. If it moves above the zone of Rs 87-Rs 87.50, then we may see a bullish momentum in the stock.