EquityPandit’s Outlook for Nifty for week (October 24, 2016 – October 28, 2016):

NIFTY:

Nifty ended the week on positive note gaining around 1.30%.

As we have mentioned last week that support for the index lies in the zone of 8500 to 8550 from where the index has bounced in the month of July – 2016 and August – 2016. The trend-line joining the lows of March, April, May & June also coincides with the support zone of 8500. If the index breaks below these levels on closing basis for couple of days then the index can drift to the levels of 8350 and then 8000 levels can also be not ruled out. During the week the index manages to hit a low of 8506 and close the week around the levels of 8693.

Support for the index lies in the zone of 8500 to 8550 from where the index has bounced in the month of July – 2016 and August – 2016. The trend-line joining the lows of March, April, May & June also coincides with the support zone of 8500. If the index manages to break this trend-line, the up-trend in which the index is moving since March will be broken and we can see the index drifting lower. If the index breaks below these levels on closing basis for couple of days then the index can drift to the levels of 8350 and then 8000 levels can also be not ruled out.

Minor resistance for the index lies in the zone of 8650 to 8700. Resistance for the index lies in the zone of 8810 to 8850 levels from where the index has broken down. If the index closes above these levels then the index can move to the levels of 8900 to 8950 where the index has made a top in the month of September – 2016.

Broad range for the week is seen from 8450 on downside to 8850 on upside.