Market touched record highs but still there is lots of outstanding short position in Nifty and Index calls. We can expect another round of short covering in the expiry week. As per current derivative data, Nifty can move towards 10,300.

The market undertone remained bullish with the support of consistent FIIs buying and short covering. The derivative data indicates bullish scenario to continue.

The Nifty50 was moving up with a decent addition in open interest which is an indication of strength in the current trend. Option writers were active in the recent rally.

We have seen put writing in 10,000, 10,100, 10,200 puts and unwinding in calls. October series derivative data is stronger than September series as we have been continuously seeing open interest addition post-expiry.

Here is a list of top five stocks which can give up to 15% return in the short term:

LIC Housing Finance: BUY| Target Rs745| Stop Loss Rs620| Return 12%

In the recent past, the stock has tested Rs785 levels on the higher side and since then it has been trading lower on the broader charts making lower highs and lower lows.

Now the prices have taken support at its 200-days exponential moving average (DEMA) and formed inverted head & shoulder formation on the daily charts.

Chennai Petroleum Corporation: BUY| Target Rs510| Stop Loss Rs405| Return 15%

The stock has been maintaining its bull run since the beginning of the year. On the daily charts, the stock retraced some gains in the past which took it towards its support of Rs465 levels amid profit booking.

Now, the prices have taken a support at its 100-days exponential moving average and once again it bounced sharply above its short-term moving averages.

Bajaj Electricals: BUY| Target Rs475| Stop Loss Rs375| Return 15%

The stock has made an inverted head and shoulder formation on the weekly charts and gave a breakout above the neckline in the recent past. On the daily charts as well, it is trading well above its short and long-term moving averages and making higher highs and higher lows.

The trend is expected to remain intact as regular higher volume along with the rise in prices is supportive for the next up move.

PI Industries: BUY| Target Rs865| Stop Loss Rs735| Return 10%

The stock has been trading lower ever since prices slid below its 200-days exponential moving average on the daily charts. However, after testing Rs700 mark, the stock rebounded sharply and now in Tuesday’s session, it closed above its 200-days EMA.

Moreover, the stock has also formed a cup & handle formation at a lower level and gave a breakout above the pattern formation along with supportive secondary indicators like RSI and stochastic.

Traders can accumulate the stock in a range of Rs780-795 for the target of Rs865 with a stop loss below Rs735.

Torrent Power: BUY| Target Rs268| Stop Loss Rs218| Return 14%

The stock has formed a cup & handle formation on the weekly charts and in Tuesday’s session, it gave a break above the pattern formation.

The formation is traded as a bullish continuation pattern. The stock also has multiple supports on the downside around its short and long-term moving averages.

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