EquityPandit’s Outlook for NIFTY Auto for the week (January 11, 2016 – January 15, 2016):

NIFTY AUTO:

Nifty AUTO index closed the week on negative note losing around 7.0%.

As we have mentioned last week that resistance for the index lies in the zone of 8500 from where the index has sold off in the month of Nov-2015. If the index manages to close above this levels then the index can move to the levels of 8700 where trend-line joining earlier highs is positioned. During the week the index manages to hit a high of 8340 and sold off to close the week around the levels of 7748.

Support for the index lies in the zone of 7400 to 7500 where 500 Daily SMA and channel support for the index is positioned. If the index closes below this levels then the index can drift to the levels of 7200 from where the index has broken out in the month of August – 2014.

Resistance for the index lies in the zone of 7900 to 8000 where the index has made a gap when the index opened gap down of 07/01/2016. If the index manages to close above this levels then the index can move to the levels of 8100 where 100 Daily SMA is positioned.

Broad range for the index is seen from 7400 to 7450 on downside to 7900 to 7950 on upside.