EquityPandit’s Outlook for Nifty for week (November 15, 2016 – November 18, 2016):
Nifty ended the week on negative note losing around 1.60%.
As we have mentioned last week that the index has broken the trend-line joining the lows of March, April, May & June also coincides with the support zone of 8500 to 8550. Support for the index lies in the zone of 8350 to 8400 where the index has formed a gap on 11/07/2016. If the index breaks below these levels on closing basis then the index can drift to the levels of 8000 to 8100 levels where long term moving averages are lying. It seems the index has formed a H & S pattern where neckline lies around the levels of 8500 to 8550. If the index has broken this pattern then the target for this can be in the range of 8100. During the week the index manages to hit a low of 8002 and close the week around the levels of 8296.
Support for the index lies in the zone of 8000 to 8200 levels where long term moving averages are lying and this range is the strong support zone for the index. If the index breaks below these levels on closing basis for couple of days then the index can drift to the levels of around 7500.
Resistance for the index lies in the zone of 8500 to 8550 levels, which was holding the index since August – 2016. If the index manages to close above these levels then the index can move to the levels of 8650 to 8700.
As FII are the net sellers in Cash & Futures Segment we may see index consolidating in the range of 8000 on downside to 8500 on upside for few weeks.
Broad range for the week is seen from 8000 on downside to 8500 on upside.