Medium Term Important Level in Nifty Future to Patiently Watch

Nifty future at 5400 level is a wait and watch kind of game, as it is important level for medium term. Markets may pause for few days before giving exact move, so in this scenario traders must patiently wait and watch. However I would suggest traders to be stock specific at this point, they may buy some of defensive counters like ITC, Sunpharma, Hindunilvr. Traders having positions in F&O segment is advised to square off their positions and just ignore markets till direction is clear. Global markets are showing some smart moves we are expecting this here as well but, lower cash market volumes are preventing us from taking position. Another strategy can be based on nifty options, traders can sell nifty 5100 put and nifty 5500 call, maximum profit at CMP is 5600. As expiry is in next week we expect nifty to expire in between 5100 and 5500 level, hence giving a gain of total 5600 on just 1 lot. For short term nifty is bullish, medium term it is consolidation as important level still holds. Most of mechanical indicators are showing over bought scene in nifty future, RSI is now above 70, slow stochastic is reaching 80 region, CCI is already above 100 mark. So what I conclude is nifty future remains overbought for some time and then some profit booking will be responsible for market to correct in near term.