Market update Nov 05, 2008

Global cues are positive to begin with. Yesterday we had a good close albeit with lower volumes. For now, I will still advise to remain on sidelines. Market has staged a very fast recovery from 2200 (a 1000 point climb in nifty in 6 sessions). So there should be some pullback any moment. Carrying positional longs at this point may not be too prudent. I will look at adding small positional shorts today (this will be risky as this is against trend and we dont have a reversal signal yet). This is more in anticipation of an upcoming downmove and will be in very small quantity. (Take this short only if you are a high risk trader). Others can wait till signs of reversal comes, or if market does not reverse and continues moving up we can catch this bus later. Watch for 3200/3240 resistances in spot