market outlook in this week (13-10-2008)

Last week also markets decline as anticipated as I expected but my call not activated. Now markets are waiting for short covering rally (8-10%) either it may come from the current levels or little bit lower levels. Expecting a short covering or a relief rally under these panic conditions is an optimistic view but definitely we should have it. The short term, medium term and long term market trend is bearish. So, we can go with this week with two strategies one is waiting for the relief rally and using that bounce to go for short and the second one is looking for the 8-10% bounce. But, it very difficult to predict the magnitude of the bounce hence I will recommend you to go short above 3450 targeting the 3250/3100/2975 with a stop loss of 3530.