EquityPandit’s Outlook for NIFTY Auto for the week (January 25, 2016 – January 29, 2016):

NIFTY AUTO:

Nifty AUTO index closed the week on absolutely flat note.

As we have mentioned last week that support for the index lies in the zone of 7400 where channel support for the index is positioned. If the index closes below this levels then the index can drift to the levels of 7200 from where the index has broken out in the month of August – 2014. During the week the index manages to hit a low of 7231 and bounce to close the week around the levels of 7544.

Support for the index lies in the zone of 7400 where channel support for the index is positioned. If the index closes below this levels then the index can drift to the levels of 7200 from where the index has broken out in the month of August – 2014.

Resistance for the index lies in the zone of 7800 to 7900 where the index has broken the medium term bottom on 14/12/2015. If the index manages to close above this levels then the index can move to the levels of 8000 where 100 Daily SMA is positioned.

The index has formed a Dragon Fly Doji around the strong support zone in a downtrend indicating the trend reversal.

Broad range for the index is seen from 7200 to 7300 on downside to 7800 to 7850 on upside.