Derivatives strategies: Nifty level above 11,000 needed for bullish trend

The Nifty hit its all-time high of 11,760 in late August and it retracted to a low of 10,005

The Nifty has range-traded close to its own 200-day moving average for the last month. The possible upside is till 11,100-plus, but there is strong resistance at 10,900-11,000 zone. Volumes continue to be low. 

Foreign portfolio investors have been net sellers through January and domestic institutions have been selective buyers. Breadth has been negative with third quarter (Q3) results not really making the market enthusiastic. Session volatility is low. But the Vix is edging up, which signals nervousness. The rupee has made some recovery in January. 

Crude oil prices remained stable though they have risen a little. Inflation is down.