Looks like the Nifty going to take a 100-150 point downward journey from here. There was a fair amount of profit taking at the end of the day with Sensex closing below 12000. For long term investors, it might be a good idea to wait for some more time till the election results are out. There is an event risk to the market associated with the election and for most retail investors it makes sense to watch from the sidelines rather than jump into the whirlpool.
For traders, portfolio protection can be bought in the form of Index Put Options.