I am long the Nifty since Aug 3 at 11,100 and have my stoploss at 11,550 now.

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Going into September, with volatility inducing events lined up, there isn't much room for error now.

Yet, the weekend's events surrounding the Future Retail group and Reliance Retail should provide impetus to talks of a mega-deal between the latter and the US giant.

That said, SEBI's new diktat on margining and pledges could shift some relative activity to institutional players.

FPI net long in futures -- at its highest level when Nifty is at 11,650 -- does point to the potential for a runaway move this week.

Interestingly, Nifty 50 traded volume as a percentage of total NSE volume has dropped sharply to 51 percent from 64 percent in May just as institutional activity dropped significantly.

The last few days have seen a slight pick up as FPIs have stepped up activity. Given the recent statements of the Fed with respect to inflation targeting, markets believe that rates will remain subdued for longer.

Real rates might hold a lower trajectory as inflation is allowed to overshoot the long-held 2 percent target. The USD weakness of late also provides some support to EM equities.

The next level to aim for 11,785 where I would raise my stop again.

Average daily volumes (INR cr)

The author is an independent trader-cum-blogger and has worked at leading brokers on the institutional sales desk over the course of his near three-decade long career in the stock market.