Post three back-to-back negative expiries from April to June, the July series started with a pullback move around 15700. The Market has formed a strong base for themselves. The index recovered gradually and as the series progressed, the indices witnessed short covering and fresh buying as well which lifted the market higher and the Nifty ended the July series above 16900 with net gains of 7% around.

The beginning of August week, the market saw volatility and the Nifty index made a high near 17490 level. The market had a strong week much on expected lines. The nifty index was moving higher highs and high lows formation from the past few weeks.

On the technical perspective, the daily RSI has marked a fresh 14-period high near 75 which indicates an overbought zone for the index. Now the 17500-17600 zone will be crucial to watch and we can see a range-bound consolidation in coming sessions.

The NIFTY has created a potential top at 17500 levels. This level is likely to act as stiff resistance unless it is taken out completely. Until this happens, we can expect profit-taking from higher levels. On declines, 17300/17100 should be seen as an immediate support zone in the coming week while 17000 will be the crucial support level.

BANKNIFTY

The Bank Nifty during last week traded in a narrow range with positive bias throughout the week. The weekly price action formed a bullish candle which maintained higher highs- higher lows formation.

The chart pattern suggests that if Bank Nifty crosses and sustains above 38100 level it would witness buying which would lead the index towards 38400 levels, which is 161.8% retracement of Fibonacci. The profit booking is likely to see at this higher level. On the downside, if the index breaks below 37600 level it would witness more selling pressure towards 37000-36800. In the coming week, market may see some consolidation at higher levels. Traders are advised to adopt a stock specific approach for the coming sessions.