EquityPandit’s Outlook for NIFTY Pharma for the week (January 25, 2016 – January 29, 2016):

NIFTY PHARMA:

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

As we have mentioned last week that support for the index lies in the zone of 11000 to 11200 where trend-line and channel support for the index is positioned. If the index closes below this levels then the index can drift to the levels of 10700 where 500 Daily SMA and 100 Weekly SMA are positioned. During the week the index manages to hit a low of 10825 and bounce to close the week around the levels of 11141.

The index has closed around the strong support zone of 11000 to 11200 where trend-line and channel support for the index is positioned. If the index closes below this levels then the index can drift to the levels of 10700 where 500 Daily SMA and 100 Weekly SMA are positioned.

Resistance for the index lies in the zone of 11700 where short term moving averages are positioned. If the index manages to close above this levels then the index can move to the levels 12000 where a gap which was created by the index on 09/11/2015 are positioned.

Broad range for the index is seen from 10800 to 11000 on downside to 11500 to 11700 on upside.