EquityPandit’s Outlook for NIFTY Pharma for the week (December 19, 2016 – December 23, 2016) :

NIFTY PHARMA:

Nifty PHARMA index closed the week on negative note losing around 2.50%.

As we have mentioned last week that minor support for the index lies in the zone of 10800. Support for the index lies in the zone of 10350 to 10500 from where the index has bounced in the month of March – 2016 and June – 2016. If the index breaks below these levels on closing basis then the index can witness a free fall as no supports are visible. If the index breaks below these levels then the index can drift to the levels of 10000. During the week the index manages to hit a low of 10539 and close the week around the levels of 10639.

Support for the index lies in the zone of 10350 to 10500 from where the index has bounced in the month of March – 2016 and June – 2016. If the index breaks below these levels on closing basis then the index can witness a free fall as no supports are visible. If the index breaks below these levels then the index can drift to the levels of 10000.

Minor resistance for the index lies in the zone of 10750 to 10850. Resistance for the index lies in the zone of 11200 to 11300 from where the index has broken down from the double bottom pattern and 200 Daily SMA is lying. If the index manages to close above these levels then the index can move to the levels of 11500 to 11700 levels from where the index has broken down.

Broad range for the index is seen from 10300 to 10350 on downside to 10800 to 10900 on upside.