After the gap up, the Nifty’s next congestion zone is 17,300 to 17,600. On the Bank Nifty, the next congestion zone is 36,700-37,500. If one closes above this lower end of this congestion zone, the market would make a much higher top on a closing basis after a long time. After almost three-four months, there will be higher top. That is going to be very interesting.

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Trade setup for March 17: Can Nifty50 test 17,500 soon? Technical chart signals, important levels and global cues to watch

It is expiry today and some of the longs may be sitting on huge profits. So some profit taking at some point is always likely but the start, the first half of the trade is going to be about short covering from the option writers.

Watch the accompanying video of CNBC-TV18’s Anuj Singhal for more details.

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