EquityPandit’s Outlook for NIFTY Auto for the week (December 19, 2016 – December 23, 2016) :

NIFTY AUTO:

Nifty AUTO index closed the week on negative note losing around 1.20%.

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 9043 and close the week around the levels of 9140.

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.

Minor resistance for the index lies in the zone of 9250 to 9300. 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 8850 to 8900 on downside to 9400 to 9500 on upside.