EquityPandit’s Outlook for NIFTY Auto for the week (December 07, 2015 – December 11, 2015):
Nifty AUTO index closed the week on negative note losing around 2.40%.
As we have mentioned last week that resistance for the index lies in the zone of 8533 where the index has opened the gap down on 21/08/2015. If the index manages to close above this levels then the index can move to the levels of 8700 where trend-line joining earlier highs is positioned. During the week the index manages to hit a high of 8563 and sold off to the levels of 8242.
Support for the index lies in the zone of 8200 where 100 Daily SMA and channel support for the index is positioned. If the index closes below this levels then the index can drift to the levels of 7900 where trend-line support for the index is positioned.
Resistance for the index lies in the zone of 8350 where 200 Daily SMA is positioned. If the index closes above this levels then the index can move to the levels of 8500 from where the index has sold off.
The index has formed a Bearish engulfing pattern on weekly charts in an uptrend indicating the trend reversal. The index has to close above the levels of 8563 to negate this pattern.
Broad range for the index is seen from 8050 to 8100 on downside to 8400 to 8450 on upside.