Nifty buying interest at 7850 levels

Nifty opened with a downward gap and continued its previous candle negative momentum ,up
afternoon however strong buying momentum around 7820 levels led index to close on positive. Nifty
closed at 7911 with a gain of 25 points.
On the daily chart the index has formed Bullish Piercing Patten indicating buying at lower levels. The
chart pattern suggests that if Nifty crosses and sustains above 7950 level it would witness buying which
would lead the index towards 8000-8050 levels. However if index breaks below 7820 level it would
witness selling which would take the index towards 7750-7700 levels. Nifty is now placed above its
important moving averages of 89, day (SMAs) indicating positive bias in the short to medium term. Nifty
continues to remain in an uptrend in the short to medium term, so buying on dips continues to be our
preferred strategy.