Nifty has completed a thousand-point journey in just 20 trading sessions.

On August 3, it closed above 16,000 for the first time, and on August 31, it closed above 17,000.

On September 1, it witnessed a gap-up opening following its prior trend and registered a lifetime high of 17,225.75.

After hitting its lifetime high, the index slipped and closed below 17,100.

The gap between its current value and the 21-day exponential moving average has extended rapidly. In the past, when such a technical setup was formed, we have witnessed a sharp throwback towards the support zone.

Momentum oscillator RSI (14) is above 75 level which is an overbought zone for the oscillator.

All this indicates Nifty may witness some profit-booking or sideways consolidation in the next few trading sessions.

The immediate support for the index is placed at 16,750 near its continuation gap and the resistance is pegged near 17,250–17,300 levels.

Bank Nifty, on the daily chart, has given a breakout of a horizontal trendline which was placed near 36,300 level.

We are expecting an outperformance in the banking index as the majority of indicators and oscillators are indicating a breakout of the consolidation zone.

Support for the Bank Nifty is near 36,200–36,050 level and resistance is near 37,300.