EquityPandit’s Outlook for NIFTY Auto for the week (February 15, 2016 – February 19, 2016):
Nifty AUTO index closed the week on negative note losing around 5.80%.
As we have mentioned last week that resistance for the index lies in the zone of 7600 to 7700 where 500 Daily SMA and 100 Weekly SMA is lying. If the index closes above this levels then the index can move to the levels of 8000 where 100 Daily SMA is lying. During the week the index manages to hit a high of 7557 and sold off to close the week around the levels of 7063.
The index has closed around the support zone of 7000 where channel support for the index is lying. Minor support for the index lies in the zone of 6800 from where the index has bounced. If the index closes below this levels then the index can drift to the levels of 6500.
Resistance for the index lies in the zone of 7200 from where the index has broken down from the lows of Jan – 2016. If the index manages to close above this levels then the index can move to the levels of 7500 to 7600 where 500 Daily SMA is lying.
Broad range for the index is seen from 6700 to 6800 on downside to 7200 to 7300 on upside.