A DOJI identified two days ago seems to be suggesting that a short term top is in place. For Nifty futures, 5950 remains the first level of support. A breakdown then shows 5880 as the next lower level of support.
Just a few days ago, we had this super strong momentum in the Nifty. The impression was that 'this time it is different'. Now, two days of range bound price action tells us that buyers are not willing to pay higher and higher prices. As traders, we know that range bound days are not profit making days. Moreover, corrections are difficult to trade.
The Market is ready for a correction. It could be deep or shallow, that is difficult to say. But, whatever decline comes will confirm that it is never different. I am of the belief - "all markets correct". We just need patience.
Mid cap and small cap stocks have already started a process of correction even while the Nifty was going up. It is possible that this group may also bottom out earlier than the Nifty. Not all stocks, but some of them.
This post doesnt actually provide a trading strategy. It shares with you, how and what I am thinking.