EquityPandit’s Outlook for NIFTY Auto for the week (December 12, 2016 – December 16, 2016) :

NIFTY AUTO:

Nifty AUTO index closed the week on positive note gaining around 4.10%.

As we have mentioned last week that minor resistance for the index lies in the zone of 8900 to 9000. Resistance for the index lies in the zone of 9200 to 9250 where the index had a gap down opening on 15/11/2016. If the index manages to close above these levels then the index can move to the levels of 9450 to 9500 where short term and medium term moving averages are lying. During the week the index manages to hit a high of 9365 and close the week around the levels of 9252.

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.

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 8900 to 8950 on downside to 9400 to 9500 on upside.