The first day of the year reminds me of the movie Shawshank Redemption. The whole day it was dull and moved in a range and just when people lost interest or were looking at closing shops it gave a significant move in the opposite direction. It would be fair to say that the markets lulled most traders into complacency today for the better part of the day.
However, I will still not give much credence to the market move today as it was basis thin volumes, movement in bank nifty and there has been selling by FII's today as well. I will look to take small short positions by taking small risk, that is by maybe selling an away Call for the current month. I expect the signals to get stronger and sharper as the week progresses and have an inherent feeling that there would be profit booking and some downward slide which could be gradual and small in nature.
Suggest not to take aggressive positions on any side. As noted earlier this week Bank Nifty will be the driver of Nifty whichever side it goes.