EquityPandit’s Outlook for NIFTY IT for the week (November 15, 2016 – November 18, 2016) :

NIFTY IT:

Nifty IT index ended the week on negative note losing around 4.90%.

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 high of 10045 and close the week around the levels of 9434.

Support for the index lies in the zone of 9300 to 9400 where trend-line joining the lows of April-2015, July-2015 and February-2016 is lying. If the index manages to close below these levels then the index can drift to the levels of 8600 to 8700 from where the index has bounced in the month of May-2014.

Minor resistance for the index lies in the zone of 9700 to 9800. 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.

If the index manages to hold on to the trend-line support and if value buying emerges in the sector then the index can also bounce to the levels of around 10500.

Broad range for the index in the coming week is seen from 9000 to 9100 on downside to 9700 to 9800 on upside.