In the beginning of last week, the Indian markets were better on the back of FII inflows and smart buying witnessed in the midcap and smallcap stocks. But higher level selling, global cues and S&P expressing concerns on domestic growth made the markets erase its gains. The markets this week closed with a weekly loss of around 2.5 per cent each.

Nifty started trading below its key support 6280 and 6212 and may try to test 6080 immediately, if it fails to get support at these level then we can expect further sell off which can bring down Nifty towards 6000 -5960 level in the near term.

Recovery
The services PMI data for the month October which came out last week, saw a moderate recovery from a four and a half year low in the previous month. The HSBC Markit purchasing Managers Index data stood at 47.1 as compared to 44.6 in September which remained the fourth successive monthly contraction. Index value of below 50 levels indicates contraction. Reasons were cited as the decrease in new business flows. Services sector growth fell to 6.1 per cent in the first quarter of the current fiscal against 7.5 per cent in the corresponding quarter in 2012-13.