Derivatives strategies: Good support for Nifty at around 10,600

The index went up briefly above 11,000 around Budget but it failed to sustain above 11,000. It's now below its own 200-Day Moving Average

The Nifty has moved down for the past seven sessions and it is testing support in the range of 10,600-10,650. The signals are bearish. A breakdown below the trading range of the past three months could result in a sharp down move.  

The index pushed briefly above 11,000 around Budget, but it failed to sustain above 11,000. It’s now below its own 200-Day Moving Average (DMA) and testing the lower end of a trading range, which has lasted since December. There seems to be good support at around 10,600 but if that breaks, the index could have a target of