The Nifty 50 index snapped five-day winning run and ended lower on August 2, on the back of weak global markets and selling across the sectors, barring pharma and healthcare.
The index opened at gap-down on August 2, went below 24,800 and hovered around same level throughout the session. However, final hour selling dragged it below 24,700, but it closed at 24,717.70, down 293.20 points or 1.17 percent.
For the week, Nifty 50 index shed 0.4 percent.
Coal India, Power Grid Corp, Shriram Finance, Dr Reddy's Labs, and ONGC were among the top gainers on the Nifty.
Biggest Nifty losers were Eicher Motors, Maruti Suzuki, Tata Motors, Hindalco Industries, JSW Steel.
Among sectors, except pharma, and healthcare, all other indices ended in the red with auto, energy, PSU Bank, IT, metal and realty indices trading 1-3 percent lower.
"Nifty opened gap down today and witnessed weak price action during the day. It closed down 293 points. On the daily charts, we can observe that the Nifty has closed be low of the last four trading sessions. There was a breakout failure as Nifty did not witness follow through buying interest on the upside," said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.
"We expect Nifty to retrace towards 24,600 – 24,550 where support is in the form of 20-day moving average and 38.2 percent fibonacci retracement level is placed. On the upside, 24,820 – 24,850 is the immediate resistance."
"Bank Nifty consolidated around the 40-day moving average (51318) and hence the fall was less intense as compared to Nifty. The Bank Nifty has been underperforming and can continue to do so." he added.
"On the weekly chart the Bank Nifty has formed an Inside Bar pattern. 52,550 – 50,440 are crucial levels to watch out for over the next few trading sessions. A range breakout shall decide the further trend hereon. Thus, shall maintain our rangebound outlook for the Bank Nifty," Gedia said.
The Bank Nifty opened 400 points lower below 51,200 and tested day's low of 51,087.85, however, recovered more than 250 points to close at 51,350.15, down 0.4 percent.
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