Hot Stocks | You can bet on Canara Bank, Concor, HDFC AMC for short term, here's why

Nifty50 has been trapped within a very narrow range for the last three trading sessions.

It has formed three small candles with a spinning top on the daily timeframes which signifies indecision.

Since July 28, the benchmark index has been trading in a rising channel pattern and continues to trade in a higher top higher bottoms formation.

Momentum oscillator RSI (14) is in an overbought zone which is above 70 level on the daily chart.

Whenever any index or any stock is in a bull run and RSI shows an overbought scenario, one can expect a sideways time-wise correction in the counter.

Support for Nifty is placed at the lower band of the rising channel pattern which is placed near 17,000 on the daily timeframe.

Resistance is capped under the upper band of the pattern and the breakout above 17,450 will open the gate for 17,600 in the coming trading sessions.

After a breakout above its rectangle pattern, Bank Nifty has most likely completed its throwback near its trendline support on the daily timeframe.

The change of polarity concept is seen at the current juncture as the earlier resistance level is acting as an immediate support zone for the banking index.

Support for Bank Nifty is placed near 36,100–36,000 and the upside resistance is likely to be capped near 37,500.