Nifty has maintained its higher top higher bottom formation on the monthly charts and has formed a fresh lifetime high of 16,349.45.

The index has given a consolidation breakout of the last eight weeks from 15,430 – 15,962 levels.

The RSI plotted on the daily timeframe can be seen sustaining below the 60 mark which shows a lack of positive momentum for the short to medium term.

The key support levels to watch out for in the short term are 15,960 (breakout level) and 15,513 (3-week low).

On the upside, the key resistance level is 16,450 (potential upside target of consolidation phase).

If the index sustains above this level, we might see it head higher towards 16,687 (138.2 percent extension level of the rise from 13,596-15,431, projected from 14,151).

We believe that the long-term bullish trend remains intact and the Nifty will move towards 16,450 and 16,687 in the coming days.