In the last week the market reached 4800 and quickly reversed to retest the levels of 4600/4580. As per time theory 2nd and 3rd January are important days for the market and failing to hold 4530 will be negative for the market. Even on weekly basis "line chart" is exhibiting weak pull back to an important resistance of 4720 (which was earlier support for the market) by closing at lowest level of last 14 months at 4624.
For the week we may see the market to trade between the range 4740 and 4530. Dismissal of the range on the higher side may result into gradual rise towards 4900 whereas breach of 4530 will be an indication of hitting 4400/4350 in the near term.
For the day, 4640 and 4600 will be important resistance and support for the Nifty. Here one has to be positional trader by trading short at 4635 and balance 50% at 4680 with a tight stop loss above 4705 for the target 4580 and 4530.
However, in case markets remains lower and breaks 4600 then the strategy should be to look for "reversal pattern" from lower levels to enter to short term long positions till then avoid bottom fishing
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