EquityPandit’s Outlook for NIFTY Pharma for the week (May 29, 2017 – June 02, 2017) :
Nifty PHARMA index closed the week on negative note losing around 10.80%.
As we have mentioned last week that minor support for the index lies in the zone of 10000 to 10050. Support for the index lies in the zone of 9800 to 9900 from where the index has bounced in the month of October-2014 and November-2016. If the index manages to close below these levels then the index can witness further free fall and virtually no support exit. The index can drift to the levels of 9700. During the week the index manages to hit a low of 9034 and close the week around the levels of 9060.
The index is in a freefall and no support levels are holding. The index can drift to the levels of 8000 to 8100 where long term Fibonacci levels are lying.
Resistance for the index is lying in the zone of 9200 to 9250 where Fibonacci levels are lying. If the index manages to close above these levels then the index can move to the levels of 9400 to 9450.
Broad range for the index is seen from 8400 to 8450 on downside & 9300 to 9350 on upside.