Most traders may not have short positions in the market. After all the Nifty has been consistently strong. Yesterday, it fell below a pivot - 5273. Just barely, since the close was very near this level.
Therefore, the question remains: is this a correction or a new down move?
If you are a short term trader, then understand that the up move has come to an end. Your view should be either to the downside or sideways, which means you are open to long as well as short positions.
If you are a position trader, then also the uptrend is likely to come to an end. I say likely, because today will give that confirmation. An uptrending line will be broken if the Nifty were to close below 5250, an event that seems likely before market opens - but who knows? Assuming this event takes place, you want to close your trading positions, then wait or take short positions on rallies - your choice.
If you are an active investor, this is just a correction. The first signs of a decline will come only if the Nifty were to close below 5140 - 5160 which is a support zone. A final confirmation comes if the Nifty closes below 4786 which is the intermediate low.
P.S. This is my third post since yesterday evening. The first two can be read from Blog Archives (right hand side).