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

NIFTY:

Nifty ended the week on positive note gaining around 0.50%.

As we have mentioned last week that the index has closed just below the 200 Daily SMA. Support for the index lies in the zone of 8000 to 8100 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. During the week the index manages to hit a low of 7916 and close the week around the levels of 8114.

The index has closed just below the 200 Daily SMA. 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.

The index can form a H & S pattern where left shoulder is from 8000 to 8300 and Head being the rally from 8000 to 8950 and a drop to the levels of 8000. So it may be possible that the index can bounce from these levels of 8000 to 8300 to complete the right shoulder.

Broad range for the week is seen from 7950 on downside to 8350 on upside.