The week saw nifty open on a steady note and then continue its downtrend aided by rising inflation and CPI with the Greece crises making matters worse, giving way to correction across all global markets.
Nifty has now closed for 2 weeks in a row below its key moving averages and is making lower lows and lower tops in its short term charts. Nifty needs to trade above 4925 and holds friday's low of 4789, in order to see any short covering. US$ broke out of its small consolidation and now 53.75-54 will work as good support as it will attempt further upside.
Nifty has 2 gap ups pending @ 4650 / 4740 which will act as support and targets for downside and 2 gap downs pending @ 5180 / 5225 which will act as resistance. For the week nifty needs to sustain above 4875 for any short covering rally while it faces strong resistance at 5000 and strong support at 4800
Support levels for the week: 4800 / 4700 / 4625
Resistance levels for the week: 4975 / 5050 / 5135
Investment Pick of the week