Stock picks of the day: Top 3 stocks which could give up t0 10% return in next 1 month

The Nifty index started the week on a positive note and managed to close above 10,900 marks on Tuesday. From the derivative front, Calls writers were seen covering their short positions, while put writers remain active in 10700 and 10800 strikes in the recent rally.

In the current scenario, put writers are shifting to the higher band which shows strength in the current trend. Till last week, 10500 put strike was the second highest strike with maximum OI of nearly 40 lakh shares followed by 10000 strikes. 

But, this week, 10800 strikes has emerged as the second highest OI of more than 43 lakh shares. This clearly indicates that bears now seem to be on the back foot.

Moving forward, we believe that on the downside, 10800-10700 levels will act as strong support while on upside 11000 levels will be key levels to watch. 

The current trend is likely to head north and on the technical front any break above 11000 levels will definitely add further buying momentum towards 11100 levels