EquityPandit’s Outlook for NIFTY Pharma for the week (December 12, 2016 – December 16, 2016) :

NIFTY PHARMA:

Nifty PHARMA index closed the week on negative note losing around 1.00%.

As we have mentioned last week that resistance for the index lies in the zone of 11200 to 11300 from where the index has broken down from the double bottom pattern and 200 Daily SMA is lying. If the index manages to close above these levels then the index can move to the levels of 11500 to 11700 levels from where the index has broken down. During the week the index manages to hit a high of 11164 and close the week around the levels of 10929.

Minor support for the index lies in the zone of 10800. Support for the index lies in the zone of 10350 to 10500 from where the index has bounced in the month of March – 2016 and June – 2016. If the index breaks below these levels on closing basis then the index can witness a free fall as no supports are visible. If the index breaks below these levels then the index can drift to the levels of 10000.

Resistance for the index lies in the zone of 11200 to 11300 from where the index has broken down from the double bottom pattern and 200 Daily SMA is lying. If the index manages to close above these levels then the index can move to the levels of 11500 to 11700 levels from where the index has broken down.

Broad range for the index is seen from 10500 to 10600 on downside to 11400 to 11500 on upside.