EquityPandit’s Outlook for NIFTY Auto for the week (May 30, 2016 – June 03, 2016):

NIFTY AUTO:

Nifty AUTO index closed the week on positive note gaining around 3.90%.

As we have mentioned last week that support for the index lies in the zone of 8000 where 200 Daily SMA is lying. If the index manages to close below these levels then the index can drift to the levels of 7750 to 7800 where 100 & 500 Daily SMA is lying. During the week the index manages to hit a low of 8005 and close the week around the levels of 8394.

Minor support for the index lies in the zone of 8100 where short term moving averages are lying. Support for the index lies in the zone of 8000 where 200 Daily SMA is lying. If the index manages to close below these levels then the index can drift to the levels of 7750 to 7800 where 100 & 500 Daily SMA is lying.

Resistance for the index lies in the zone of 8500 to 8550 where trend-line joining earlier highs is lying. If the index manages to close above these levels then the index can move to the levels of 8800.

Broad range for the index is seen from 8100 to 8150 on downside to 8550 to 8600 on upside.