Street signs: Short squeeze to drive markets higher

Experts said markets could go even higher, as short covering trend likely to continue till July 27

The markets last week got a shot in the arm due to ‘short squeezing’ after the Securities and Exchange Board of India, barred participatory notes (p-note) from taking unhedged positions in the derivatives market. In other words, p-notes unwound their existing naked short positions, which led to a rally in information technology, pharmaceuticals and banking stocks. Technical experts said the markets could go even higher from current levels, as the short covering trend is likely to continue till July 27, the day of expiry for this month’s derivatives contracts. 

Samie Modak

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