EquityPandit’s Outlook for Nifty for week (November 21, 2016 – November 25, 2016):
Nifty ended the week on negative note losing around 2.70%.
As we have mentioned last week that 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. During the week the index manages to hit a low of 8048 and close the week around the levels of 8074.
The index has closed just below the 200 Daily SMA. Support for the index lies in the zone of 8000 to 8100 levels from where the index has bounced couple of times in recent past 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 8250 to 8300 where the index can form a right shoulder of the H & S pattern. If the index manages to close above these levels then the index can move to the levels of 8450 to 8500 where neckline of the H & S pattern of 8500 to 8900 is lying.
The index can form a H & S pattern where left shoulder is from 8000 to 8300 and Head being the rally from 8000 to 8950 and a drop to the levels of 8000. So it may be possible that the index can bounce from these levels of 8000 to 8300 to complete the right shoulder. Coming few weeks are very crucial for the markets as the levels of 8000 may be make or break levels.
Broad range for the week is seen from 7800 on downside to 8200 on upside.