Best intraday stocks to watch out for on July 21

The Nifty closed on Wednesday closed with gains of over 1%.

Though it put a splendid performance, it ended the day almost 70 points from day's high and near to the low of the day and faced the channel resistance line. Interestingly, all the candles at the resistance line are bearish, and all the candles at the support line are bullish. After opening with a huge positive gap, the Nifty has closed much below the opening. In any case, the Nifty opens with a gap down on Thursday and closes negatively means the market has ended its rally. As suspected earlier, the Nifty moved above the 78.6% retracement level and closed above it. At first sight, we don't see any bearishness in any of the indicators. But, with Wednesday's candle formation, it shows exhaustion in the trend. Several stocks declined from the day high very sharply and closed near the day's low. The Open Interest shows that there was the unwinding of positions just before the weekly derivative expiry. Except for today's price action, there is nothing negative. At this juncture, we need to wait for a clear directional bias. A move above today's high of 16588 will negate the bearish implications. But a negative closing will be a caution signal for the bulls.

TECHM

The stock has broken out of a base pattern by closing above the prior swing high. It closed 4.01% above the 20DMA, and the Bollinger bands hints at a sharp upside. The RSI is almost at 55 zone. The +DMI just crossed the -DMI. The MACD line is trending up above the signal line and nearing the zero line. It closed above the Anchored VWAP resistance. The Elder impulse system has formed strong bullish bars. In short, the stock broke the tight base. A move above Rs 1045 is positive, and it can test Rs 1090. Maintain a stop loss at Rs 1020.

ICICIGI

The stock has formed a double top pattern and closed at the valley point support. It also retraced more than 38.2% retracement level indicates the end of an uptrend. It closed at the moving average ribbon support. Wednesday's decline was seen on back of the highest volume. The RSI closed below the prior swing low and at the 50. The MACD shows a decline in momentum. The Elder impulse system has formed a strong bearish bar. It closed at the Anchored VWAP support. The TSI is about to give a bearish signal. A move below Rs.1213 is negative, and it can test Rs 1183. Maintain stop loss at Rs 1228.