Do not get into big buying as yet because there is a formidable resistance band between 3150 and 3250 on Nifty. The hope of another fiscal package and cut down in oil prices besides sliding inflation may keep the markets buoyant in the short term.

World markets are in an uptrend that could help us also to run a bear rally until some worst news appears from earnings this month. Though less likely, moving beyond 3250 on Nifty would take it to 3450. But staggered accumulation of puts in Feb series is recommended on rise above 3100. There would always be a probability of touching the previous lows until the SENSEX(NIFTY) move beyond the levels of 11500(3250).
Immediate resistance for SENSEX(NIFTY) is at 10190(3110) and then 10400(3150).

Stay away from RELIANCE on long side for the short term. Long straddle on a rise is suggested around strike 1290 or 1320.
The levels given in the post below are also relevant for the stocks.