Nifty continued its uptrend adding odd 35 points continuing the upward momentum on hourly chart along with expectations of better rainfall in coming season. IMD post market confirmed above average rains with chance of 94% which may be another positive signal for Indian equity markets. The fertilizer, Auto, media and Pharma stocks supported the rally. Technically, Nifty may see some profit booking at 7750 levels being a strong supply zone.

A lot of confluence will be derived from CPI and IIP numbers. Since, Intermediate trend remains positive given market is sustaining the key 7510 level, we suggest buy on dips strategy in coming trading sessions as we may inch towards next resistance at 7850. On the downside, strong support formation is seen at 7590.