Nifty Gaps

1) According to the gap theory Exhaustion gap is the last leg of a trend. Which is negative.
2) Nifty as penetrated the upper channel line at 5970 of descending flag or wedge. Which is positive for target of 6730.
3) It has completed 'Head' of a possible 3 months Head and Shoulders Pattern. Which has neckline at 5993. Which is negative.
Conclusion
Hold your long position till Nifty close decisively below 5970. Below 5970 one can short Nifty with the stop loss of recent high, because it  start forming right shoulder which has target of 5550-5450.