EquityPandit’s Outlook for NIFTY Pharma for the week (December 26, 2016 – December 30, 2016) :

NIFTY PHARMA:

Nifty PHARMA index closed the week on negative note losing around 4.60%.

As we have mentioned last week that 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. During the week the index manages to hit a low of 10075 and close the week around the levels of 10157.

Support for the index lies in the zone of 9800 to 10000 from where the index has bounced in the month of October-2014 and November-2016. The index has been trading very weak and virtually no support for the index is visible. If the index manages to close below these levels then the index can drift to the levels of 9500.

Resistance for the index lies in the zone of 10350 to 10500 from where the index has broken down on intraday basis. If the index manages to close above these levels then the index can move to the levels of 10700 to 10800 where medium term moving averages are lying.

Broad range for the index is seen from 9800 to 9850 on downside to 10400 to 10500 on upside.