Last week, the banking sector stocks provided support to the markets. News of capital infusion by the government and the RBI policy meet kept stocks in the limelight. But the higher level profit booking kept the markets away from more highs.

Nifty is likely to test 8690 and 8700 in the short term and Nifty has support at 8517 and 8437 will act as a support for the market. Brave hearts can buy 8500 Nifty put options when Nifty is at around 8700 on expectation that market may not scale up above this resistance level.