One witnessed range bound and higher level profit booking due to the slightly overbought situation. Nifty finally ended at 8779.85. The weekly and monthly charts of Nifty and Sensex are in buy mode and will keep the market steady this week, despite global volatility. Nifty has immediate support at 8733 and 8689. It has resistance at 8851 and 8932. In normal market conditions, the Nifty may not move down below previously said levels. Low level buying can be initiated and despite a weak opening last Monday.

India’s trade deficit declined marginally. The trade deficit fell 38.1 per cent; export fell 0.3 per cent and import fell 14.09 per cent in August 2016, when compared with August 2015. Consumer price index for August 2016 slowed to 5.05 per cent in August 2016, compared to the July 2016 consumer price index of 6.07 per cent. Market participants say that the Reserve Bank may cut lending rates in the next policy meet. If that happens, then it could act as a catalyst for the markets. India’s IIP numbers came out, which were a tad below expectation; it fell 2.4 per cent in August.