Market Live: Short covering may push Nifty to 11,500 levels this week; 3 stocks to buy now

The Nifty is trading close to record highs. Derivatives data demonstrates there are still a lot of exceptional short points in the Nifty and index calls. We can be expecting an additional round of short covering which could push the index towards the 11,500-11,550 score this week.

Share Market Tips

We look forward to the bullish scenario to persist, with the Nifty having numerous supports at lower levels (approximately 11,200 and 11,300 spot).

Options writers were seen as dynamic in the recent rally as we have seen set writing at 11,200 and 11,300 strikes along with call unwinding. We have been constantly seeing open interest additions after the July expiration which point to long build-up.

Among Nifty call options, the 11,500 strike call has the maximum open interest of more than 37 lakh shares. Input options, 11,000 strike holds the utmost open interest of over 50 lakh shares. On the procedural front, 11,320-11,300 spot is a strong support zone and the current style is likely to persist towards 11,500-11,550 levels.

Here is a list of top three stocks that could return 11-13 percent in the next 1 month:

Godrej Industries: Buy | Target: Rs 690 | Stop loss: Rs 580 | Return: 11%

Time Technoplast: Buy | Target: Rs 175 | Stop loss: Rs 143 | Return: 13%

Info Edge (India): Buy | Target: Rs 1605 | Stop loss: Rs 1350 | Return: 11%

The rank given herein should be treated as the only aspect while making the trading investment decision. The statement does not offer individually made to order investment advice. TradeIndia Research Recommends those financiers independently calculate particular investments and tactics, and encourages investors to search for the advice of a monetary adviser.

Source:- https://www.moneycontrol.com