Derivatives strategies: Short-term trend is down

Foreign portfolio investors (FPI) were strong net buyers in November along with domestic institutions. But, FPIs have been net sellers in the December settlement

The market may have slipped into a bearish phase. This is despite an uptick in GDP numbers, good auto sales and PMI data. The next trigger for sentiment could be the RBI’s Policy Review on Wednesday, and after that, election results from Gujarat and Himachal Pradesh.

The market has slipped till the levels of Nifty 10,095 — that’s the recent low registered on Monday itself. If that support breaks, there is a chance that the next stop could be sub-10,000. This level was last hit on November 15, when the market bounced from 10,094. Foreign portfolio investors (FPIs) were strong