EquityPandit’s Outlook for NIFTY Auto for the week (January 30, 2017 – February 03, 2017) :

NIFTY AUTO:

Nifty AUTO index closed the week on positive note gaining around 4.30%.

As we have mentioned last week that resistance for the index lies in the zone of 9750 to 9830 from where the index has broken down from September-2016 and October-2016 lows. If the index manages to close above these levels then the index can move to the levels of 10000 from where the index sold off in November-2016. During the week the index manages to hit a high of 10051 and close the week around the levels of 10015.

Support for the index lies in the zone of 9750 to 9800 from where the index broke out on intraday basis. If the index manages to close below these levels then the index can drift to the levels of 9550 to 9600 where Fibonacci level is lying.

Resistance for the index lies in the zone of 10000 to 10100 from where the index sold off in the month of November-2016. If the index manages to close above these levels then the index can move to the levels of 10250 to 10350 where trend-line joining highs of September-2016 and October-2016 is lying. If the index manages to close above these levels then the index can move to the levels of 10450 to 10500 where the index was top out in the month of September-2016.

Broad range for the index is seen from 9650 to 9700 on downside to 10350 to 10400 on upside.