RBI governor's press meet announced for tomorrow has evoked positive response.
Let us assume that 50bps(0.5%) rate cut has been factored into the markets by a 500 points rally on the SENSEX yesterday. But if it is going to be a 100bps(1%) rate cut then it could take this index further up. Yet, the SENSEX would need to close above 10000 within a couple of sessions to turn things positive for near term. Otherwise, a sideways trend with negative bias would continue.

There are mixed cues from the world markets. For the present, it is purely a technical play because the fundamentals clearly project tough times ahead. January earnings season is anxiously awaited though, the slowing consumer demand is a clear signal of declining growth.
But the falling crude oil prices should be a great help to India and China if these governments have some intelligent plans to benefit from this.

Resistance for SENSEX is at 9340 and then at 9640. A positive close today should set the tone for next week, but trade light on long side.

Writing NIFTY calls of strike 3000 and above is suggested. But only savvy traders may trade this strategy because writing options is very risky and they cause unlimited loss also.