EquityPandit’s Outlook for NIFTY Auto for the week (December 26, 2016 – December 30, 2016) :

NIFTY AUTO:

Nifty AUTO index closed the week on negative note losing around 1.80%.

As we have mentioned last week that support for the index lies in the zone of 9000 where 200 Daily SMA is lying and from where the index has broken out of the short term consolidation. If the index manages to close below these levels then the index can drift to the levels of 8400 to 8500 where the index has formed a low on Brexit day. During the week the index manages to hit a low of 8875 and close the week around the levels of 8987.

The index has closed below the levels of 9000 where 200 Daily SMA is lying and from where the index has broken out of the short term consolidation. If the index manages to close below these levels then the index can drift to the levels of 8400 to 8500 where the index has formed a low on Brexit day.

Minor resistance for the index lies in the zone of 9050 to 9100 from where the index has broken down on intraday basis. Resistance for the index lies in the zone of 9400 to 9500 from where the index has broken down from the multiple support zone which was holding the index in the month of August-2016 and November-2016. If the index manages to close above these levels then the index can move to the levels of 9800 to 10000 from where the index has broken down from the consolidation in the month of September-2016 and October-2016.

Broad range for the index is seen from 8700 to 8750 on downside to 9200 to 9250 on upside.