The markets last week closed in downside with Nifty and Sensex closing down around 2 per cent respectively. The major sectoral losers for the week were Capital Goods and the Consumer Durable sector which closed down around 6 per cent and 4.7 per cent respectively, whereas the gainers Metals and Realty closed up around 5.2 per cent and 3.1 per cent respectively. Nifty has support at 5470 and 5450 and movements below these levels can cause further sell-off. Nifty has resistance at 5850.

Fall
The HSBC services Business activity index contracted for the first time in 20 months. It was the first major data which came out last week. The service sector PMI stood at 47.9 points in July from 51.7 points in the previous month. The reading above 50 points indicates expansion, while the below 50 mark shows contraction in the sector. The composite PMI which comprises both manufacturing and services PMI also contracted o 48.4 points in July from 50.9 points in June this year. The reason behind the drop was cited as a fall in fresh orders.