Nifty - Pullback on the cards

Nifty (CMP: 5989.6) : The action formed an indecisive candlestick pattern with decent volume on the daily chart which signifies tug of war between bulls and bears. Technically, on the daily chart the index has tested lower trend line support level (blue color) & bounced from there which indicates pullback on the cards. Cluster support level placed at 5950. If the index is sustained above 5950, Index will head towards 6110 – 6151 levels which is 38.2% - 50% retracement level of 6343 – 5972 levels. The daily oscillator’s shows neutral, but the hourly oscillator shows multiple leg of positive divergence which signifies pullback can be seen.

Recommendation: Traders can buy at CMP or buy on dips to 5980 - 5970 with the stop loss of 5950 (closing basis) for the target of 6110 – 6151 levels.