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From a price action point of view, the Nifty has broken out of a long consolation on the medium-term chart, so going ahead, the level of 15,960 should act as strong support.

On the open interest front, the highest Call open interest addition is seen at 16,500 strike. On the Put side, good participation is seen at 16,000 strike. The broader range of the index may be 16,000-16,500.

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 of the trend.

We expect the bullish momentum to continue and take the prices higher towards 16,500 (50 percent extension level of the rise from 10,790-15,431, projected from the 14,151-mark).

If it manages to breach above 16,500, we might see it move higher towards 17,019 (61.8 percent extension level of the rise from 10,790-15,431, projected from the 14,151-mark).