Nifty might decline to 5300-5320 levels

In a chat with ET Now, Jitendra Mehta, Technical Analyst, Edelweiss, talks about the outlook of the Nifty.

Give us a sense on whether or not there is any chance of some rapid action on the Nifty either on the upside or on the downside?

Nifty is now poised for some kind of a volatility ahead. In the last few days, we have seen market top out on 5400-5470, then inching and now it has been hovering around the 5400 level. I suspect that some kind of a downside action might be underway and we might see some short-term corrections ahead. I am pretty cautious on the Nifty as there is a short-selling setup and possibly we might see a decline till 5300-5320 levels on downside.