The benchmark indices snapped a four weeks winning streak and closed the week deep in the red. Nifty remained under relentless selling pressure throughout the week to settle below the 5,300 mark, its lowest closing since August 6. India's quarterly GDP grew 5.5 per cent languished near its slowest in three years in the quarter that ended in June.

The 30-share BSE Sensex closed at 17,380.75, down 402.46 points or 2.26 per cent, while the Nifty closed at 5,258.50, down 128.20 points or 2.38 per cent, on a week-on-week basis. Almost all the sectorial indices closed in the red with Metals, Capital Goods, Auto, Realty, Infrastructure and Banking stocks were major draggers in the index during previous week trade.

GDP data for Q1FY13 came in 5.5 per cent versus consensus estimates at 5.3 per cent. Nymex crude closed at $94.62 a barrel declining 1.6 per cent on a weekly basis.

On the weekly chart, Nifty has formed one of the strongest Bear candles of the recent times, in the process it has also closed below the 20-day moving average placed at 5,330 level. The index on expected lines after breaching the previous swing low (5,340) has tested the rising gap area of August 6. Nifty is now trading near the crucial technical support marked by the 50-day moving average (5,255), trend line joining February and July highs and rising gap area of August 6, (5,215-5,260).

The short-term stochastic has also approached oversold readings for the first time in a month along with oversold readings on the RSI of the hourly chart. This may trigger an attempt of pullback in prices from the support zone of 5,260-5,220.

However, for a reversal of the down trend to materialize, the index needs to post a comfortable close above 5,330-5,350 level. In such a scenario index moving above 5,350 can test the major resistance zone of 5,450-5,470 level.

On the lower side a sustained breach of the major support level of 5,200 can jeopardise the current up trend and can see Nifty testing the July low of 5,030 level. In August (till August 30), FIIs were net buyers to the tune of 8216 crore while DIIs were net sellers to the tune of 4,161 crore.

Key data/events to watch globally would be US MBA Mortgage applications, construction spending (MoM), Initial Jobless claims
. In India the key event to watch out would be Export import numbers for the month of July.