EquityPandit’s Outlook for NIFTY IT for the week (January 09, 2017 – January 13, 2017) :

NIFTY IT:

Nifty IT index ended the week on negative note losing around 2.80%.

As we have mentioned last week that 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. During the week the index manages to hit a high of 10590 and close the week around the levels of 10110.

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.

Minor resistance for the index lies in the zone of 10200 to 10300. 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.

Weekly report on Nifty IT published on 11/11/2016, it was mentioned that if the index manages to hold the levels of 9400 and if value buying emerges, the index can bounce to the levels of 10500 and in this week the index retraced from the levels of 10590.

Broad range for the index in the coming week is seen from 9750 to 9800 on downside to 10300 to 10400 on upside.