Nifty Rally Could Extend To This Level, Says Analyst
On expiry day, most of the call writers are forced to cover their positions, according to Rajesh Palviya of Axis Securities.
The rally in the benchmark Nifty 50 has the potential to extend further to 22,450, as there is short-coverage action underway, according to Rajesh Palviya of Axis Securities Ltd.
"The rally could extend further to 22,450. On expiry day, most of the call writers are forced to cover their positions," Palviya, senior vice president of technical and derivatives research at the brokerage, told NDTV Profit.
There is buying interest in mid-cap information technology companies, led by Coforge Ltd., according to him.
Benchmark equity indices recovered in the last hour of trade and surged to their highest level in seven sessions. The Nifty reclaimed 22,400 for the first time after May 6.
The NSE Nifty 50 ended 203.30 points, or 0.92%, higher at 22,403.85 and the S&P BSE Sensex closed 676.69 points, or 0.93%, up at 73,663.72.
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"The index has not only decisively breached its strong resistance zone of 22,240–22,330 but also managed to cross its 50DMA, which suggests a continuation of the current up-move to 22,520. While the support level is shifted higher at 22,260," said Aditya Gaggar, director of Progressive Share Brokers Pvt.
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