EquityPandit’s Outlook for NIFTY IT for the week (December 19, 2016 – December 23, 2016) :

NIFTY IT:

Nifty IT index ended the week on positive note gaining around 1.60%.

As we have mentioned last week that resistance for the index lies in the zone of 10000 to 10200 from where the index has broken down from the February – 2016 lows. If the index manages to close above these levels then the index can move to the levels of around 10500 to 10600 from where the index has broken down from the double bottom pattern. During the week the index manages to hit a high of 10300 and close the week around the levels of 10219.

Minor support for the index lies in the zone of 10000 to 10050 from where the index has broken out on intraday basis. Support for the index lies in the zone of 9700 to 9800 from where the index broke out of consolidation. If the index manages to close below these levels then the index can drift to the levels of 9300 to 9400 where trend-line joining the lows of April-2015, July-2015 and February-2016 is lying.

The index has closed around the resistance zone of 10100 to 10200 from where the index has broken down from the February – 2016 lows. If the index manages to close above these levels then the index can move to the levels of around 10500 to 10600 from where the index has broken down from the double bottom pattern.

Broad range for the index in the coming week is seen from 9900 to 9950 on downside to 10450 to 10500 on upside.