EquityPandit’s Outlook for NIFTY IT for the week (November 28, 2016 – December 02, 2016) :

NIFTY IT:

Nifty IT index ended the week on positive note gaining around 6.70%.

As we have mentioned last week that 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. 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. During the week the index manages to hit a low of 9430 and close the week around the levels of 10115.

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.

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.

Broad range for the index in the coming week is seen from 9700 to 9800 on downside to 10300 to 10400 on upside.