After a blistering rally that took the Nifty up by more than twenty percent, markets are in a stage of consolidation. While there is logical support at 5400, it is for the market to decide where support will come, finally.
A more important question is: is this a bull market? The answer is based on market behavior so far - prices above 200 day ma, pattern of higher highs, higher lows, and, gains of more than 20% from its lows. Therefore, based on this evidence, I aasume that the current decline is a correction / consolidation in a newly born bull market.
Even as we are bullish, short term traders should buy only when the trend changes to up. The signals will come on short term time frames.
An interesting piece of news is about the sesa goa - sterlite merger. While there are many reasons to justify this action, I am not a fan of financial engineering as a means of value addition. It is hard work that adds value, not investment bankers.