EquityPandit’s Outlook for NIFTY Auto for the week (July 04, 2016 – July 08, 2016):

NIFTY AUTO:

Nifty AUTO index closed the week on positive note gaining around 3.00%.

As we have mentioned last week that support 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 below these levels then the index can drift to the levels of 8200 to 8250 where medium term moving averages are lying. During the week the index manages to hit a low of 8567 and close the week around the levels of 8895.

Minor support for the index lies in the zone 8700 to 8750. Support 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 below these levels then the index can drift to the levels of 8200 to 8250 where medium term moving averages are lying.

Index has closed around the resistance zone of 8830 to 8880 from where the index has retraced in the month of April – 2015 and August – 2015. If the index manages to close above these levels then the index can move to the levels of 9100 where life time highs for the index is lying.

Broad range for the index is seen from 8700 to 8750 on downside to 9050 to 9100 on upside.