Some soothsayers are back on TV channels telling that smart money has started picking up the stocks. Be cautious because it is those large caps, darlings of the market players' stocks that are still showing signs of further weakness. And it is no wonder that these soothsayers could be stuck at higher levels on such counters.
These stocks seem to have come down to attractive price levels but the jury is still out. We are charting a V shaped relief rally which has never culminated in forming a bottom historically. Moreover, technically the lower levels of these large caps are still open to be breached sooner or later if they fail to surpass resistances much higher from current levels. However, there is a chance of forming a bottom if we do not breach 9000 levels consistently during the next quarter. Therefore, investors could wait for a confirmation of relaible siganls because it is still a traders' market and only technically savvy players are making money in short term trades.

For today, it is not necessary that we may also start falling down like salt due to weak signals from the DOW and Asian markets. But BSE SENSEX is surely finding it difficult to cross over the crucial trend deciding 11000 mark. Also that there are not many negative triggers at the moment and we may just remain in a volatile narrow range. Crucial supports for this week are 9700 and 9300. It is worth taking a risk by initiating call option in (November or December series) at lower levels with final stop at 9000.

Next update expected between 2.30 and 3.00p.m.(9.30 GMT).
Please also keep a track of levels mentioned in the posts below(Sunday onwards).