EquityPandit’s Outlook for Nifty for week (January 09, 2017 – January 13, 2017):

NIFTY:

Nifty ended the week on positive note gaining around 0.70%.

As we have mentioned last week that resistance for the index lies in the zone of 8250 to 8300 where the index has form a right shoulder of the H & S pattern and medium & long term moving averages are lying. 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 8307 and close the week around the levels of 8244.

Minor support for the index lies in the zone of 8200 to 8220. Support for the index lies in the zone of 8080 to 8100 from where the index broke out 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 to 7700.

Major resistance for the index lies in the zone of 8280 to 8320 where declining trend-line joining highs of 07/09/2016, 23/09/2016 and 24/10/2016 and medium & long term moving averages are lying. 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.

The index is trading around the major resistance zone of 8280 to 8320.

Broad range for the week is seen from 8000 on downside to 8500 on upside.