Nifty Auto Outlook for the Week (Dec 14,2020 – Dec 18,2020)

For the Week: (Dec 14,2020 – Dec 18,2020)

NIFTY AUTO Index closed the week on negative note losing 113.25 points 1.22%.

Weekly High: 9,456.65

Weekly Low: 9,133.65

Weekly Close: 9,188.95

Weekly Support & Resistance For Nifty Auto Index:

SUPPORT 1 9,062
SUPPORT 2 8,936

NIFTY AUTO index opened flat and extended gain in early part of the week. However, rally was short lived and, index witnessed profit booking in later half of the week. Index snapped five weeks rally and ended with loss. We expect index could witness profit booking or sideways corrective action, it is wise to adopt buy on dip strategy going forward.

Technically on the daily charts we see minor support on the downside for NIFTY AUTO index lies at 9075 levels, whereas minor resistance on the upside is capped around 9300-9350 levels.

If NIFTY AUTO index breaches minor support on the downside and closes below it, we may see fresh break down and index can drag towards major support on lower side around 8950 and if breaches minor resistance on the upside and closes above it, we may see fresh breakout and index can head towards higher levels around 9550.

Currently NIFTY AUTO index is trading above 200 days exponential moving average and suggests long term trend is bullish. EquityPandit’s analyst predicts range for the week is seen from 9000 on downside and 9500 on upside.