A morning walk down Dalal Street| Tug of war between bulls & bears likely to continue

A volatile week for Indian markets but the index managed to recoup some losses and closed just below 11600 levels for the week ended September 7.

Weakness in the rupee is likely to keep markets on the edge this week which is a truncated week. Markets will remain shut on Thursday on account of Ganesh Puja. Global clues, macroeconomic data, movement of rupee against the dollar, FPI selling and crude oil price movement will dictate the sentiments in the near term. FPIs turn net sellers in September, pull out Rs 5,600 crore in just five trading sessions.

On the economic front, India's industrial production data for July 2018 and all-India general consumer price index (CPI) inflation data for August 2018 will be declared on Wednesday.

On the macro front, two big data points came out on Friday. India's current account deficit (CAD) as a percentage of GDP declined marginally to 2.4 percent in the April-June quarter of 2018-19 against 2.5 percent in the year-ago period, the RBI data released on September 7 showed.

The country's foreign exchange reserves fell by $1.191 billion to $400.101 billion in the week to August 31 due to a decline in foreign currency assets and gold reserves, according to RBI data.

Inflation data based on wholesale price index (WPI) for August 2018, will be announced on Friday. The bullish bias will further get confirmed if Nifty surpasses the 11,640 resistance zone.