After 5 days rally nifty come down 1.67% on Friday,we can not assume this is normal pull back after 5 days rally ,below are some key observation

On daily chart nifty created out-side bar pattern which means bears become stronger and bulls liquidate long position

In the last 5 days when nifty was rising volume was constantly deckling so this rally was supported by short covering and not by long position and on Friday when nifty come down which was highest volume in the last 6 trading session means bulls exit and bears created short aggressively

On the daily chart FORCE INDEX has given sell signal which means this fall is supported by sellers

On the hourly chart nifty is making rounding top formation and the length is 130 point and according to this target will be 5340-5330.

In the last 5 days when market was rising on the 14-02-2011 it was open with gap and still this gap is not fill so logically this gap will be filled sooner

If the nifty cross 5600 levels then bulls will take up to 5750-5798

Option traders should be on cautious note as volatility will be high and value of option will change vary fast and chances are losing amount on any side