12JAN TO 16JAN 2009

It is now hard to believe that all the accounting-sins are awash with the self-exposure of SATYAM. Who knows who's next in line because there must be many more still out there. It would not be wise to go discreetly about it and demonstrate only the salvaging capabilities. The venom should be drained from the system, sooner the better to restore credibility. The onus lies solely on the accounting firms besides regulatory authorities.
However, as said earlier in the posts, it would be unfair to point finger only at India because there were no strict accounting regulations all around the world that caused this recession also.

The mood is pessimistic though, the bulls still hoping for the uptrend to continue. But under the given circumstances, there is no likelihood of big buying by the Institutional investors thereby, not helping to move above the range beyond 10500 to maintain the uptrend.
Momentum indicators have entered into negative territory and pointing downwards. Many of the favourite stocks have breached their short term trend lines; implying that their uptrend is over.
The expected reduction in petroleum prices and initiating the earning season by INFOSYS on Tuesday next week, are the two triggers to be taken into account.
The proposed Obama stimulant has already invoked luke warm response in the face of more pain in the offing in the form of deteriorating earnings and economic data.
To sum it up all, the uptrend would require big positive triggers that are not anywhere in the sight.

TECHNICALLY
If the sensex/nifty manage to close above 9720/2940 then there could be another attempt towards 10500.But it would rather be wise to accumulate put options(Feb series) with every rise above 3000 on nifty keeping a stop loss at 3150. Going long would require more watchful eyes.

On the other hand, if the sensex/nifty give a close below 9140/2750 then exit longs and remain short for lower targets upto 8500/2600. The trend would have changed to downwards below 9140/2750 with a probable support at 9000. Yet a reversal from below this level would be short lived.