Daily Call - Jan 22 2009

One does not have to have a doctorate in Oriental capital markets to know that we will see some short covering today after fight back in the US indices, which was led by banking stocks. These rallies not withstanding, the bottom line is that the world banking system is in deep morass and Obama is no superman. He is just another human being who happens to be the 43rd American to take the oath of office of the President. Don't cross check the 43rd part, its right.

As the lows of the Sensex and the Nifty were convincingly broken on closing terms, we would advice waiting in the wings and not buying into today's rally. Reliance, the market mover, will present its results today later after the markets close and is unlikely to pull a rabbit out of its hat. Take a cautious approach today and if you need to trade long, do it only intra day with tight stop losses.