Derivatives strategies: Nifty must beat 11,000 for bull run to continue

An eight-week downtrend led to 14.9 per cent retraction off the peak, before the rebound started in early December

The Nifty is range-trading close to its own 200-Day Moving Average (DMA). 

There is strong resistance at the 10,900-10,950 zone. Volumes are low with net institutional selling in January.

FPIs were net buyers in December. Domestic institutions were also net positive. Some cautious retail buying has been evident in January. Session volatility remains high. 

The Volatility Index (Vix) is edging up, which could signal nervousness. The rupee has made a big recovery to above Rs 70 versus the dollar.

Crude prices remain low and inflation is down. But there are political and geopolitical concerns. The