While the market is on a firm uptrend, there is a chance of a sharp decline at least on an intraday basis. A fall below 5,530 will signal the first weakness

Today the benchmark back home opened in the positive for the third consecutive trading session. While the Sensex had a 11-day high opening, the Nifty opened at five day high. The indices traded in the positive throughout the session. The Sensex closed in the positive for the fourth consecutive session while Nifty closed higher for the third consecutive session. The Sensex closed at 18,886 (up 266 points or 1.43%) while the Nifty closed at 5,551 (79 points or 1.44%). This is the highest closing since 14 August 2013. The National Stock Exchange (NSE) recorded the rise on a lower volume of 57.25crore shares.

The positive move has also got the support after the data showed that China's manufacturing gauge rose to a 16-month high in August.

However back home, India's economy grew at the slowest quarterly rate since the global financial crisis in the three months through June, lower than expected and hurt by a contraction in mining and manufacturing, government data showed on Friday, 30 August 2013. The GDP grew 4.4% in Q1 and was the slowest growth since the Jan-March quarter of 2009. Manufacturing fell an annual 1.2% during the quarter while mining fell by 2.8%, the data showed. The farm output rose 2.7%.

Petrol price was hiked by Rs2.35 per litre, and diesel by 50 paise per litre effective Sunday, 1 September 2013.

Indian factory activity shrank for the first time in more than four years last month, adding to the country's deepening economic malaise even as the Reserve Bank of India (RBI) struggles to defend the battered rupee currency, a survey showed. The HSBC Manufacturing PMI, compiled by Markit, sank to 48.5 in August from 50.1 in July, the lowest reading since March 2009. The count of 50 separates expansion and contraction.

The RBI clarified on media reports that there was no such proposal under its consideration at this juncture of various options of converting idle gold, including that available with temple trusts, into bullion.

Merchandise export in August is expected to be in double-digits once again and this upward trend is expected to continue in the months to come, according to commerce secretary SR Rao.

Except for Jakarta Composite (down 2.24%), KLSE Composite (down 0.58%) and Seoul Composite (down 0.08%) all other Asian indices closed in the positive. Hang Seng was the top gainer, up 2.04%.

China's economy is strengthening after a two-quarter slowdown, with a manufacturing gauge rising to a 16-month high in August as new orders jumped and overseas demand rebounded. The Purchasing Managers' Index was at 51.0, the National Bureau of Statistics and China Federation of Logistics and Purchasing said in Beijing. A separate manufacturing PMI released by HSBC Holdings Plc and Markit Economics rose to 50.1 last month from 47.7 in July, the biggest gain in three years and the first reading above 50 since April.

US indices closed in the red on Friday. President Barack Obama has decided to seek congressional authority to attack Syria for alleged chemical weapons prompting criticism that he's undermined US credibility.

European indices were trading in the green while the US Futures were also trading higher.

Strong orders for manufactured goods helped euro zone factory activity rise at the fastest pace in over two years in August and led to backlogs of work for the first time since mid-2011, a survey showed on Monday. Markit's Manufacturing Purchasing Managers' Index (PMI) jumped to 51.4 from 50.3 in July - the first month the index had been above the 50 line that signifies expansion since February 2012. The final reading pipped an earlier flash figure of 51.3.