Heavily overbought markets corrected, especially when it came to large cap stocks last week. The daily RSI is placed very close to its dangerous range of 70. A sharp uptrend is not predictable, if there are no major positive triggers. Market participants are awaiting fruitful discussions in the Rajya Sabha in implementing the GST Bill. The GST Bill has been listed for discussions this week. The July Series Futures and Options will expire on July 28. There are huge shorts created by traders at the 8600 level. If that level has been taken off, then we can expect a sharp bump up and subsequently, Nifty may move towards the 8700 mark.

Nifty
The Nifty faces resistance at around the 8600 and 8700 levels. Support for the Nifty lies at 8452 and 8400 levels. If Nifty fails to get support, at these levels then it could test 8339, though there is a remote chance of that. Now, let us check the US markets. There is some more steam left in Dow Jones. The S&P 500 VIX which measures the undercurrent of the US market is at 12.02 per cent suggesting a very strong outlook. The Dow Jones has support at 18117 and has resistances at 18784 and 19000 levels.