Nitin Kunte, technical advisor, Angel Trade stated that the stock markets had a strong trading session on Monday, because of short covering. Markets got well from crucial support levels, which is opportunistic for the markets. Sensex marked its closure after making again of 413 points at 15757 where Nifty closed the day at 4761, up 114 points.

Mr. Kunte also said that the banking stocks showed intensity on yesterday (Apr 7).

He also told that the markets may remain rangebound for next few days. He added that the markets may remain positive and banking stocks look attractive and there can be more improvement in real estate and auto sectors.

Stock to be watched out for Tuesday is Tata motors.

Alex Mathew Head of Research, Geojit Financial Services said, “Nifty on Monday managed to close above its exponential moving average supporting a range bound to positive market on Tuesday.”

“We have seen short covering on Monday in frontline stocks like Reliance Industries, SBI and ICICI Bank. Value buying was seen in FMCG counters like Hindustan Unilever, ITC and Pharma stocks like Ranbaxy and Sun Pharma. But it is too early to comment on future course of the market because of low volumes.”

Mr. Mathew said that the market may test 4850 on Apr. 8 and this will correct sharply. After if there is a decisive move above 4850 then it may help the market to recover.

Buying of 4800 call and creating bull spread on Nifty is advisable, said Alex.