EquityPandit’s Outlook for Nifty for week (December 12, 2016 – December 16, 2016):

NIFTY:

Nifty ended the week on positive note gaining around 2.20%.

As we have mentioned last week that resistance for the index lies in the zone of 8250 to 8300 where the index can form a right shoulder of the H & S pattern. If the index manages to close above these levels then the index can move to the levels of 8450 to 8500 where neckline of the H & S pattern of 8500 to 8900 is lying. During the week the index manages to hit a high of 8275 and close the week around the levels of 8262.

Minor support for the index lies in the zone of 8100 to 8150 on intraday basis. Support for the index lies in the zone of 7900 to 8000 levels from where the index has bounced couple of times in recent past and this range is the strong support zone for the index. If the index breaks below these levels on closing basis for couple of days then the index can drift to the levels of around 7500.

Resistance for the index lies in the zone of 8250 to 8300 where the index can form a right shoulder of the H & S pattern. If the index manages to close above these levels then the index can move to the levels of 8450 to 8500 where neckline of the H & S pattern of 8500 to 8900 is lying.

Next week on 13th & 14th December the market has to deal with major event as FED is meeting for the Rate Hike decision. Generally the Rate Hike decision is a setback for the emerging markets in short term so Markets can be highly volatile.

Broad range for the week is seen from 7850 on downside to 8450 on upside.