Derivatives Strategy: Nifty could fall further

Foreign portfolio investors remain net, high-volume sellers. Retail investors have also sold. Domestic institutional investors, including funds, are the only buyers at the moment

The Nifty continues to be range bound but background signals suggest it is now more likely to head down, rather than up. The VIX is rising, indicating increasing nervousness among traders. Breadth is negative with advances outnumbered by declines. Volumes are middling to low. Geopolitical tensions continue. The fears are of an intensifying trade war with America taking on the world. The one positive outcome for India from this could be lower crude prices. 

The Nifty tested resistance at 10,900 unsuccessfully on June 13, topping out at 10,893. It has since fallen, to a low of 10,652 on Tuesday. This