A common behaviour observed in many traders is that each move tends to make them believe that it is a long-term top or a long-term bottom but in a real world scenario, the market will not move vertically up or down.
When the market starts correcting, it would be important to check if the correction is due to the unwinding of previous trades or new shorts being initiated.
If the overall Open Interest of the futures is reducing, it will mean that traders who were earlier long are now booking profits.
When the market or an instrument is in a pullback mode, instead of short selling which is against the overall trend, it would be prudent to wait for the correction to end.
Let us say the Nifty is in an uptrend and a pullback starts with diminishing Open interest and the 20 days rolling return coming down to 2 Standard deviation, that would be an opportunity to buy.
Some of the strategies could be Vertical Spreads and OTM butterflies, which generally offer a comfortable reward to risk and also allow additional time to save on theta decay.