EquityPandit’s Outlook for Nifty for week (May 02, 2016 – May 06, 2016):

NIFTY:

Nifty ended the week on negative note losing around 0.70%.

As we have mentioned last week that the index has closed around the strong resistance zone of 7950 to 8000 where 500 Daily SMA is lying. If the index manages to close above these levels then the index can move to the levels of 8100 where trend-line joining earlier highs is lying. During the week the index manages to hit a high of 7992 and close the week around the levels of 7845.

Support for the index lies in the zone of 7850 where 200 Daily SMA is lying. Minor support for the index lies in the zone of 7730 to 7780 where the index has opened gap up on 13/04/2016. If the index manages to close below these levels then the index can drift to the levels of 7500 to 7550 from where the index has broken down after making the double bottom pattern and 100 Daily SMA is lying.

Strong resistance zone for the index lies in the range of 7950 to 8000 where 500 Daily SMA is lying. If the index manages to close above these levels then the index can move to the levels of 8050 where trend-line joining earlier highs is lying.

As we have mentioned in our weekly report on 15/02/2016 to 19/02/2016, the index has achieved our target of around 8000. Now it seems that we can witness some sharp correction or consolidation in the market, so it is wise to remain cautious and wait for the further direction.

Broad range for the week is seen from 7600 on downside to 8100 on upside.