Voltas witnessed sharp upmove of more than 6% on 20th May with very high volumes of approximately 3.9 million shares that changed hands on BSE and NSE together.
On the derivatives side the voltas futures saw cut in open interest of 18% which clearly suggests the short covering in the counter.
Voltas has been on steady downtrend since Nov 2010 and has fallen from the level of Rs.260 to Rs.162 in matter of 6 months. Technically the stock has taken support at Rs. 150 - Rs. 152 range and has bounced back twice from such levels in the past 3 months.
InvestorZclub believes that because of huge shorts that got piled up in the counter during this month the traders with short positions might rush for cover before expiry and hence the stock might rise a little bit more from the current levels. Short term Traders can buy the stock at current levels of Rs 162 for a target of Rs 170 in 3 to 4 trading sessions, keeping a strict stop loss at Rs. 159.