For almost nine trading sessions, the Nifty50 has been consolidating within 14,700-14,200 levels, representing a rangebound movement, hence any breakout on either side may signal further direction. On the daily chart, the index continues to trend lower, forming a lower top and lower bottom formation, indicating a short-term downtrend.
The next higher levels to be watched are around 14,600 levels. Any sustainable move above 14,600 may cause a pullback towards 14,700-14,800, which should be used as an exit opportunity for short-term traders.
On the downside, any violation of an intraday support zone of 14,400 may signal weakness towards 14,300-14,200 levels. The daily strength indicator RSI and the momentum indicator Stochastic both have turned bullish, which signals possible pullback action at lower levels.
Here is the list of three stocks to bet on for the short term: