EquityPandit’s Outlook for Nifty for week (January 18, 2016 – January 22, 2016):

NIFTY:

Nifty ended the week on negative note losing around 2.20%.

As we have mentioned last week that support for the index lies in the zone of 7500 to 7550 where the index has formed a medium term bottom. If the index manages to close below this levels then the index can drift to the levels of 7100 to 7200 where the lower end of the channel is positioned which is supporting the index on every downfall since the month of February – 2015. During the week the index hit low of 7426 and virtually close at the lowest levels.

Support for the index lies in the zone of 7100 to 7200 where the lower end of the channel is positioned which is supporting the index on every downfall since the month of February – 2015. If the index manages to close below this levels then the index can drift to the levels of 6700 where 1000 Daily SMA and 200 Weekly SMA are positioned.

Resistance for the index lies in the zone of 7550 to 7600 where the index has broken down from the double bottom pattern. If the index manages to close above this levels then the index can move to the levels of 7650 to 7700 where the index has formed a gap on 07/01/2016 on gap down opening.

Broad range for the week is seen from 7100 on downside to 7700 on upside.