Derivatives strategies: Strong resistance at 10,700-10,800 for Nifty

Retail investors have been direct equity sellers, but they continued to subscribe to equity mutual funds and this has been a saving grace

The market is signalling an extended period of bearishness. Breadth is poor with advancing stocks out numbering share that declined stocks. Volumes have been high on sessions with net losses and in stocks that have gone south. Volatility has spiked sharply. The major indices have all dropped substantially below their respective 200-day moving averages (200-DMA). 

Domestic institutional investors have continued to be buyers. But foreign portfolio investors (FPIs) have sold heavily in the past 10 weeks. The bond market yields have also risen and the rupee has crashed. Retail investors have been direct equity sellers, but they continued to subscribe to