EquityPandit’s Outlook for Nifty for week (October 19, 2015 – October 23, 2015):
CNX Nifty ended the week on positive note gaining around 0.6%.
As we have mentioned last week that support for the index lies in the zone of 8050 from where the index has broken out of the Inverse Head & Shoulder pattern. If the index breaks below the levels of 8050 on closing basis then the index can drift to the levels of 7800 where support for the index is positioned. During the week the index made a low of 8088 and bounce to close the week around the levels of 8241.
The index has closed above the 100 Daily SMA which is lying around the levels of 8200. Support for the index lies in the zone of 8050 to 8100 from where the index has broken out of the Inverse Head & Shoulder pattern.
Strong resistance for the index lies in the zone of 8380 to 8450 where 200 Daily SMA and channel resistance for the index is positioned.
Broad range for the week is seen from 8100 on downside to 8400 on upside.