Edenbridge Bonfire Society’s  ‘Celebrity Guy’, US Presidential candidate Donald Trump pictured in Edenbridge. Pic/AFP

Last week, Nifty closed below its crucial support level at 8,500 and finally closed at 8,433. As the major technical indicators are giving a major sell-off, we can see more profit booking. The good news is that the market is very closed, which can give a minor pull back in the early part of the next week. The immediate support for the market is at 8,406, which was the low recorded last week, below it can move down towards 8,320 and 8,239. S&P 500 VIX (which measures the volatility of US market) is at 22.51, and India VIX is at 16.84, clearly indicating that fear among the investors is inching up ahead of the US Presidential elections. According to technicals, the market can rebound sharply between November 8 or 9. Nifty has resistance at 8,600 and above this crucial resistance level, Nifty can scale further towards 9,000 plus. It is advisable to buy good quality stocks for medium to long term before the technical correction is over. Cautious investors can accumulate stocks in a phased manner.