We suggested caution on October 12th, just at the start of Results season. Market is down to 8000. Bears should book profits now. Bihar exit polls will be out today evening. Markets it seems is discounting NDA defeat. What if NDA is defeated? There will be a swift downward reaction, but 7800 on Nifty is strong support. What if NDA wins? Market will make a swift move towards 8350. What should a trader do then? If you are a bear, you should book out your profit, and stay out of the market. Market has already given you 300 points, and there is no point in taking a further risk at 8000. If you are a Bull, take around 25 to 30% positions by creating a Bull Call spread. If the Market moves down further, close the Nov series positions and create Dec series Bull call spreads (Investment level around 75%). Even if the market falls now (Till Monday), market will most likely begin an upward trend later in this series/Dec series.