EquityPandit’s Outlook for NIFTY Auto for the week (January 02, 2017 – January 06, 2017) :

NIFTY AUTO:

Nifty AUTO index closed the week on positive note gaining around 1.70%.

As we have mentioned last week that minor resistance for the index lies in the zone of 9050 to 9100 from where the index has broken down on intraday basis. 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. During the week the index manages to hit a high of 9172 and close the week around the levels of 9142.

Support for the index lies in the zone of 9000 to 9050 where 200 Daily SMA is lying. Support for the index lies in the zone of 8800 to 8850 from where the index has bounced couple of times in the month of December-2016. 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.

Broad range for the index is seen from 8900 to 8950 on downside to 9300 to 9350 on upside.