Derivatives strategies: Signals bullish, breadth has improved

Volumes have been good, with sustained, heavy buying from foreign portfolio investors

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The Nifty continues to run up after its breakout from a trading range at 11,000. It has now run up 6 per cent within the settlement — actually in less than three weeks. It is now hitting resistance as it nears the all-time high.  

Since the next two months involve general elections, the uptrend is likely to be heavily influenced by political news flow. The target of the breakout was till about 11,500-11,600 and it has hit resistance above 11,500.  Background signals are bullish. Breadth has improved