EquityPandit’s Outlook for NIFTY IT for the week (January 02, 2017 – January 06, 2017) :

NIFTY IT:

Nifty IT index ended the week on positive note gaining around 3.30%.

As we have mentioned last week that minor support for the index lies in the zone of 10000 to 10050 from where the index has broken out on intraday basis. Support for the index lies in the zone of 9700 to 9800 from where the index broke out of consolidation. If the index manages to close below these levels then the index can drift to the levels of 9300 to 9400 where trend-line joining the lows of April-2015, July-2015 and February-2016 is lying. During the week the index manages to hit a low of 9980 and close the week around the levels of 10399.

Minor support for the index lies in the zone of 10200 to 10250. Support for the index lies in the zone of 10000 to 10100 where short term moving averages are lying. If the index manages to close below these levels then the index can drift to the levels of 9700 to 9750 where the index has formed a bottom in the month of December-2016.

Resistance for the index lies in the zone of 10500 to 10600 from where the index has broken down from the double bottom pattern. If the index manages to close above these levels then the index can move to the levels of 10700 to 10800 where 200 Daily SMA is lying.

Broad range for the index in the coming week is seen from 10000 to 10050 on downside to 10600 to 10700 on upside.