EquityPandit’s Outlook for NIFTY Auto for the week (January 16, 2017 – January 20, 2017) :

NIFTY AUTO:

Nifty AUTO index closed the week on positive note gaining around 1.00%.

As we have mentioned last week that resistance for the index lies in the zone of 9450 to 9550 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. During the week the index manages to hit a high of 9741 and close the week around the levels of 9601.

Minor support for the index lies in the zone of 9500 to 9550. Support for the index lies in the zone of 9350 to 9400 from where the index broke out on December-2016 highs. If the index manages to close below these levels then the index can drift to the levels of 9050 to 9100 where 200 Daily SMA is lying.

Resistance for the index lies in the zone of 9750 to 9830 from where the index has broken down from September-2016 and October-2016 lows. If the index manages to close above these levels then the index can move to the levels of 10000 from where the index sold off in November-2016.

Broad range for the index is seen from 9400 to 9450 on downside to 9800 to 9850 on upside.