Nifty breaches 11,000: Brace for a lot of volatility in the new zone

Traders can take the inverse position for a couple of sessions to try and profit from premium decay at settlement.

The Nifty has broken out past 11,000. High hopes about the Budget, coupled to huge portfolio inflows, have been the drivers for this uptrend. The long trend is bullish but centred on newsflow about the Budget. It's impossible to calculate upside targets since the market is in a new zone.

The VIX is signalling a possibly serious correction. It has risen to 12-month high. However, a pullback would not be considered serious unless the Nifty slid below 10,550, which is the level where the recent breakout came. If that is broken, the next key support would be at 10,325. 

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