NIFTY ADVANCE DEEPAVALI DHAMAKA

Nifty started the day on a gap up and remained flat for most part of the day. Nifty
closed at 7895 with a gain of 78 points on a daily basis.
On the daily chart the index has formed a Morning star candle indicating bullish
bias. The chart pattern suggests that if Nifty breaks and sustains below 7800 level
it would witness selling which would lead the index towards 7750-7720 levels.
However if index crosses above 7950 level it would witness buying which would
take the index towards 8090-8150 levels. With current close Nifty is approaching
towards its 89 day SMA (7935 levels) which remains an immediate resistance.
Nifty continues to remain in an uptrend in the short to medium term, so buying
on dips continues to be our preferred strategy.