Investors covered short positions in NSE Nifty and Bank Nifty on November 22, ahead of the Maharashtra and Jharkhand election results, resulting in significant unwinding in the November derivatives series.

The Nifty saw an unwinding of 12.23 lakh shares, while Bank Nifty saw 1.35 lakh shares unwound, indicating a strong short-covering rally. The indices surged approximately 2.5%, with BSE Sensex gaining nearly 2,000 points and Nifty reclaiming 23,900.

Foreign Institutional Investors (FIIs) increased their net long positions, with the long-short ratio rising from 25% to 31%, marking the largest single-day change in November. Key resistance for Nifty is now identified at 24,000, supported by strong call writing, while significant put writing at 23,500 has established it as a solid support level.

Market analysts noted that the unwinding of open positions and the price gains across both indices reflect a cautiously optimistic sentiment among investors. The resistance levels for Nifty have shifted to 24,300-24,500, with a robust support zone emerging at 23,500-23,300.