Trade with caution, Nifty may be headed for a deep correction

Looking at the recent rally, from 6000 to 6870 which was yesterdays high, nifty seems to be tiring out, & reasons for correction are plenty :
1. Divergence on the RSI
2. advance decline ratio is 1:1, which is not the case when market is roaring.
3. Elliott wave may be unfolding into diagonal triangle in its 5th wave..
4. Sky rocketing valuations.
5. Weak Macros, poor monsoons & tapering.

Smart Money is distributing with every rise in the Nifty, I believe we should go short below 6700, for a target of 6450. If one is  an aggressive trader keep the stop of 6870 and short the index.

IT sector looks great for investing, Infy looks great around 3150 , dont expect it to go below 3000, Wipro also looks interesting it should bottomout around 510-500, dont see it going below 500.

Best Regards
Ashutosh Mishra

Mob: +91 9743374152