Week began with market mayhem on Dalal Street after one of the policymaker hinted that US central bank may increase rates in upcoming monetary policy, scheduled to review on September 21-22th. However, week ended on the gusto mood following the softening in inflation data along with feeble US August retail sales data and industrial production number. Keeping the Fed reserve monetary policy meeting in mind, we remain cautious for the coming week. Despite knowing the fact of disappointment at retail sales and non-farm payrolls, we are expecting some pressure in the market on the back of much awaited Fed meeting outcome. We anticipate, Fed reserve might throw some hawkish comments along with the decision of interest rate hike in the US. Long pending interest rate hike is pushing the US economy in risk, which may force Jenet Yellen to go for interest rate hike, if not aggressive then gradual.  Hence, expecting market to take further cues from the Fed event and remain twirling on the global tunes. Further, domestically, we expect auto and consumption driven stocks to remain in focus on account of on-going festive season and bountiful of pouring rains.

On the back of weaker global cues market dipped 1 per cent in the week and closing pattern on Friday also not signaling any optimistic pictures for the coming week. Friday’s daily chart shows a near gravestone doji candle as market failed to hold the long morning gains that signal starting of a reverse trend. So we recommend a sell on rally strategy on Nifty and near term range place at 8860 – 8700.