EquityPandit’s Outlook for Nifty for week (December 14, 2015 – December 18, 2015):
Nifty ended the week on negative note losing around 2.2%.
As we have mentioned last week that support for the index lies in the zone of 7700 where 500 Daily SMA and trend-line support for the index is lying. If the index closes below this levels then the index can drift to the levels of 7500 where the index has made a medium term bottom. During the week the index manages to hit a low of 7575 and close at virtually the lowest levels.
Support for the index lies in the range of 7540 where the index has made a medium term bottom in the month of September – 2015. If the index closes below this levels then the index can drift to the levels of 7200 where lower end of the channel is positioned. The index is moving in this channel since the month of February – 2015.
The index has broken down from the Head & Shoulder pattern. The neckline for the same lies in the zone of 7725. Immediate resistance for the index lies in the zone of 7725 where neckline and 500 Daily SMA are lying. If the index manages to close above this levels then the index can move to the levels of 7850 to 7900 where short term moving averages are lying.
Broad range for the week is seen from 7400 on downside to 7800 on upside.