Nifty on monthly timeframe has been forming a higher high higher low pattern, indicating that the trend of the benchmark index from a long-term perspective remains strongly bullish.

Coming down to the weekly chart, we can see that the index has been holding the 20-week simple moving average (SMA) since June 2020 and has been finding support near it in every correction.

On the option open interest front (June 24, 2021 expiry), strong participation is seen at 16,000 Call options.

On the Put side, the highest open interest is seen at 15,500 strike. Thus, we can expect the broader range of the index to be 16,000-15,500.

On the indicator front, the stochastic plotted on the weekly and the daily timeframes can be seen forming a bearish crossover near the overbought level, indicating the bulls might be losing their hold on the trend.

A breach below 15,700 confirms the evening star pattern, and we might see the index fall to 15,538 (20-day SMA and also placed close to the previous week low).

If this level is breached we might see prices move lower towards 15,150 (multiple touchpoint level).