A morning walk down Dalal Street | Pullback rally possible if Nifty closes decisively above 11,300

The persistent selling by foreign institutional investors (FIIs) on D-Street pulled the benchmark indices below their respective support levels in the week gone by.

FIIs pulled out more than Rs 7,000 crore from the cash segment of Indian equity markets while, for the month, they have pulled out more than Rs 14,000 crore.

The S&P BSE Sensex failed to hold on to 38,000, while the Nifty50 closed below 11,300 levels for the week that ended on July 26.

Apart from persistent selling by FIIs, muted corporate earnings growth from India Inc, concerns over a slowdown in the Indian economy, below-normal monsoon, trade talks, as well as geopolitical concerns weighed on sentiment.

The S&P BSE Sensex lost 1.19 percent, while the Nifty50 saw a dip of 1.18 percent for the week that ended on July 26. But the bigger fall was seen in the broader market. The S&P BSE Smallcap index dropped 1.88 percent, while the S&P BSE Midcap index closed lower by 1.58 percent.