Derivatives strategies: Near-term Nifty target at 12,200-12,300

The 200-day moving average is now at 11,200-11,300, which would be the point to watch if there is a major correction

The Nifty has zoomed on the basis of political continuity allied to the hopes of a dovish monetary policy. The major indices hit new highs despite global and domestic bad news. The US opened new fronts in its trade war, imposing tariffs on Mexico, and rescinding India’s privilege under the GSP. On the domestic front, GDP growth slowed to five-year lows and unemployment soared to multi-year highs.

But the market is expecting a rate cut from the RBI and FPI buying was strong. We can reasonably expect the uptrend to continue until the MPC’s decision  is announced. After that, there may