The Sensex on Friday (July 25) closed the week at 14,274.94 after losing 502.07 points, while the broad based Nifty ended at 4311.85 points, down 121.7 points.

Alex Mathew, head - research centre, Geojit Financial Services said, “Nifty closed lower at 4,311, on weak European and Asian markets. Our markets were moving higher by 18.8% in the last one weak, showing slightly over situation. Nifty will remain in a range of 4,123 (50 DMA). A major upward or downward trend will emerge only if Nifty breaches these levels.”

The major draggers, which turned Nifty towards the lower side, were Reliance, ICICI Bank and HDFC. The stocks such as Ranbaxy, ACC and HUL were the major supporters.

Though the inflation figures for the week ended July 12 were not higher than that of analysts’ expectation, they have not provided any support to the banking sector, he said.

“But small cap PSU banking stocks were in good demand after the merger news of SBI and State bank of Saurastra. A lot of reforms can be seen in a quite small time of span in the banking industry,” he said.

“Also trader weighs the credit policy which will come on Jul. 29, 2008. Subdued trend will remain for Monday with stock specific actions,” he added.

P. K. Agarwal, president - research, Bonanza Portfolio said, “Continuing with strong momentum of past few trading sessions and positive global cues, Indian markets opened positive. Nifty went to a high of 4,539.”

But profit booking shortly took Nifty lower than the crucial 4,400 level. Nifty also touched a low of 4,385 during the day but it bounced back from that level and closed at 4,433.

Profit booking was seen in banking region, where the gains were biggest in last 4 trading sessions.

The major losers were Tata Power, Tata Steel, PNB and TCS. Buying activity was witnessed in Auto sector, NALCO, ONGC, Cairn and Zee Entertainment.