Nifty gained 0.82 percent last week which was mainly led by handsome gains of 4.52 percent in Nifty IT. The Nifty Midcap 50 index, too, added another 2.57 percent to its kitty. However, the banking index remained laggard by losing over half a percent.

If Nifty has to reach the milestone of 16,000 and or move beyond it, Bank Nifty needs to surpass the sturdy wall of 36,000. If it fails to do so then we may see some profit-booking this week.

The key support for Nifty is at 15,700 – 15,550, whereas 15,850 –15,900 are immediate resistances.

The Nifty Midcap 50 index has now reached a crucial juncture. On the daily chart, we can see it reaching the 100 percent price extension of the previous up move and on the weekly timeframe, we can see it coinciding around the 161 percent price extension of the first up move started after March 2020 lows.

We do not expect the multi-year bull run to end, but at least a short-term pause or profit-booking cannot be ruled out.

Hence, traders are advised to take some money off the table and avoid aggressive bets overnight. The stock-specific approach still can be continued but one has to be very fussy and should follow proper risk management from hereon.