EquityPandit’s Outlook for NIFTY Auto for the week (January 18, 2016 – January 22, 2016):

NIFTY AUTO:

Nifty AUTO index closed the week on negative note losing around 2.60%.

As we have mentioned last week that support for the index lies in the zone of 7400 to 7500 where 500 Daily SMA and channel support for the index is positioned. If the index closes below this levels then the index can drift to the levels of 7200 from where the index has broken out in the month of August – 2014. During the week the index manages to hit a low of 7527 and virtually close at the lowest levels.

Support for the index lies in the zone of 7400 where channel support for the index is positioned. If the index closes below this levels then the index can drift to the levels of 7200 from where the index has broken out in the month of August – 2014.

Resistance for the index lies in the zone of 7800 to 7900 where the index has broken the medium term bottom on 14/12/2015. If the index manages to close above this levels then the index can move to the levels of 8000 where 100 Daily SMA is positioned.

Broad range for the index is seen from 7200 to 7300 on downside to 7800 to 7850 on upside.