Both Nifty and the Sensex lost more than 3% each during the week ended May 21.

The overall reaction of the stock market was weak because of fears that the European debt disaster could upset the economic recovery throughout the world.

But, positive earnings surprise from engineering firm L&T and the administration declaration of an increase in price of APM gas to $4.2 per mbtu strengthenthe the overall outlook of the market.

Moreover, 3G spectrum auctions closed on, May 19, 2010, made around 7 billion for the administration. Many Indian scrips also fall below their 200-day DMA, which is seen as a key technical level due to continued selling by foreign institutional investors.

The 30 share index, Sensex shed 548.99 points to 16,445.61 during the week, whereas, the broad based NSE Nifty ended after losing 162.35 points to 4931.15 in the same period.

Realty accompanied by Metal, Auto, Bankex, IT and Teck saw heavy selling action.

The Capital goods index remained up by 1.20% during the week.

In the week, the midcap stock index fell 253.67 points and the smallcap stock index declined by 394.97 points.

The top gainers during the week remained L&T, ONGC, SBI, ITC and Cipla.

In contrast, the biggest losers in the Sensex were Tata Motors, DLF, JP Associates, Sterlite Ind and ICICI Bank.

For the week ended May 8, food Inflation climbed up to 16.49% on the back of high prices of veggies and fruits.

The Bank of Japan (BoJ) on Friday announced that it will keep its key policy rate unaltered at 0.1%.

While commenting on the outlook for the coming week, Alex Mathews, Research head, Geojit BNP Paribas Financial Services, stated, ``For Nifty the major support is there at 4,800 and 4,675. Even though we may see minor recovery, the overall outlook is still weak. Next Thursday we are going to see the May F&O expiry which may lend some support to the markets at lower levels.