The Nifty 50 index closing above the 20-Day Exponential Moving Average has technically opened up the door for a big upside in September, according to a technical expert.

Sharma also advises booking profits in midcaps and smallcap stocks with both indices hitting new records last month and momentum indicators are suggesting overbought zones for both of them. "Expect a money shift from mid/small to largecaps this month," the note said.

The note further said that both Nifty 50, as well as the Nifty Bank index saw covering of short positions on Friday. "FIIs have covered their shorts completely in index futures, along with the August expiry and in fact, they have added longs along with retail."

Both foreign and domestic investors were net buyers in the cash market on Friday. That was also due to the block deals seen in stocks like IDFC First Bank and Five Star Business Finance.

Sharma added that the options setup is indicating a bullish outlook for the Nifty 50 in the coming week. The Nifty Bank can also expect fresh upside above levels of 44,570 with the next targets seen at 45,000 and 45,471.

For the Nifty 50, the index looks poised for levels of 19,600 and 19,800 with supports seen at 19,403, 19,368 and 19,341. "In case any dip happens, look to buy at these levels," he wrote. Sharma also advised traders to not book profits early and play for bigger moves. "We should add more as we close higher and higher," Sharma wrote.

Here are some of the top picks highlighted in the note: