EquityPandit’s Outlook for NIFTY Auto for the week (January 04, 2016 – January 08, 2016):

NIFTY AUTO:

Nifty AUTO index closed the week on positive note gaining around 2.40%.

As we have mentioned last week that strong resistance for the index lies in the zone of 8200 where short term moving averages and 100 Daily SMA are lying. If the index manages to close above this levels then the index can move to the levels of 8300 where 200 Daily SMA is positioned. During the week the index manages to hit a high of 8343 and close the week around the levels of 8328.

Support for the index lies in the zone of 8200 to 8250 where short term moving averages and 200 Daily SMA are positioned. If the index closes below this levels then the index can move to the levels of 8100 where 100 Daily SMA is lying.

Resistance for the index lies in the zone of 8500 from where the index has sold off in the month of Nov-2015. If the index manages to close above this levels then the index can move to the levels of 8700 where trend-line joining earlier highs is positioned.

Broad range for the index is seen from 8100 to 8150 on downside to 8500 to 8550 on upside.