Hot Stocks: Another round of short coverings could take Nifty towards 11,550
Episode 1796, Oct 16, 2019, 02:00 AM
Indian markets extended gains for the third consecutive session with Nifty testing two weeks high to reclaim 11,400 levels on the back of a sharp surge in auto and metal stocks.
From the derivative front, open interest (OI) build-up was seen at 11,300 put strike along with call unwinding in 11,400 strikes.
But, there are a lot of outstanding positions which are held with call writers and we might witness another round of short-covering in coming sessions which can take the index towards 11550 levels.
On the downside, 11300-11280 will act as a major support for Nifty.
From the technical front as well, Nifty has almost witnessed a V-shaped recovery from 11,100 levels as the index is now holding above its long-term moving averages on the daily interval.