Nifty is done with the mentioned upside level of 5850 and is completing a 5 wave pattern on the upside. A sell signal or an A-B-C correction can be expected in nifty futures below 5810 levels where i expect it to correct to 5600 levels.As of now it is wise to get out of trading longs as nifty is showing some kind of exhaustion which gives the sign of profit booking.If we look at the corresponding indices like bank nifty, mid cap and small cap indices we could not see any kind of break down and thus we should be expecting a range bound market with a negative bias below 5810 levels. It would be wise to buy 5700 put Sep if the futures trades below the mentioned support zone. It would be interesting if the premium in nifty reduces at these levels which can give some promising upside momentum but the premium is still on the higher side. Nifty has completed 78% retracement from 5100 levels and it decent range bound market gives an opportunity for many stocks to form a temporary bottom before the next upmove. Thus avoid the upside break outs as we could see lot of negative divergence in the market for any good up move. The volatility index is giving signals of fresh short positions at the top and 6000 calls have been getting written for the past 3-4 days
