EquityPandit’s Outlook for NIFTY Auto for the week (February 22, 2016 – February 26, 2016):

NIFTY AUTO:

Nifty AUTO index closed the week on positive note gaining around 5.10%.

As we have mentioned last week that resistance for the index lies in the zone of 7200 from where the index has broken down from the lows of Jan – 2016. If the index manages to close above this levels then the index can move to the levels of 7500 to 7600 where 500 Daily SMA is lying. During the week the index manages to hit a high of 7464 and close the week around the levels of 7436.

Support for the index lies in the zone of 7000 to 7100 where channel support for the index is lying. Minor support for the index lies in the zone of 6800 from where the index has bounced. If the index closes below this levels then the index can drift to the levels of 6500.

The index has closed around the strong resistance zone of 7500 to 7600 where 500 Daily SMA is lying. If the index manages to close above this levels then the index can move to the levels of 8000 where 100 & 200 Daily SMA is lying.

Broad range for the index is seen from 7000 to 7100 on downside to 7550 to 7650 on upside.