The Nifty, in the medium term, has not only sustained above the breakout level of 15,962 but has also formed a higher high and higher low pattern.

On the option open interest front (September 30, 2021 expiry), the highest Call open interest addition is seen at 16,500.

On the Put side, open interest addition is seen at 17,200. Thus, we can expect the broader range of the index to be 16,500-17,200 in the weeks to come.

RSI plotted on the weekly timeframe remains above the 50 mark and is drifting higher towards the overbought level, indicating that the bulls are attempting to take control.

The Nifty is moving higher after breaking out of a long consolidation.

The bullish momentum may continue and take the index towards 17,019 (a 61.8 percent extension level of the rise from 10,790-15,431, projected from 14,151 mark).

If the index manages to breach 17,019, we may see it move higher towards 17,799 (78.6 percent extension level of the rise from 10,790-15,431, projected from 14,151 mark).

The three-week low of 16,162 will act as a key support level. If it is breached, it may slide to 15,900.