Closing Bell: Market extends rally to 3rd day; Nifty above 16,300, Sensex gains around 250 points—Bank, Auto stocks shine

The Indian market extended winning streak to third day amid volatile global market and rupee falling to record low as the benchmark indices ended marginally higher by around 0.3% on Tuesday.  

The broader Nifty50 managed to close above 16, 300, while the Sensex added over 200 points to close near 54,750.  

Supporting the benchmarks, Nifty Midcap gained around 0.6% and Smallcap index surged by almosy 0.9% in the broader market.  

Likewise, Nifty PSU Bank and Realty gained over two per cent in Tuesday's closings, while Pharma, Oil & Gas and Healthcare witnessed some profit booking.  

Among stocks, Axis Bank, Apollo Hospitals, Mahindra & Mahindra, Ultratech Cements, IndusInd Bank, Bajaj Finserv, Tata Steel, Bharti Airtel, State Bank rose the most on Tuesday.  

ONGC, Nestle India, Tata Consumer, Sun Pharma, HDFC Life, Kotak Bank, HCL Tech, Infosys and Dr Reddy's were top laggards in an otherwise positive market.  

Here is what market experts said about the Tuesday's trading session:

Vinod Nair, Head of Research at Geojit Financial Services.

"Domestic indices witnessed bouts of volatility amid weakness in global markets, IT and Pharma sectors. But it was well countered by recovery in banking, auto and metal stocks. Developed markets traded negatively due to slow hiring plans announced by blue chips MNC like Apple Inc. in anticipation of global economic slowdown. However, due to the Indian economy’s strong fundamentals, we believe that the immediate impact of the slowdown in the domestic economy will be milder than of global peers."

Rupak De, Senior Technical Analyst at LKP Securities

"Nifty remained strong during the session as it moved above the previous swing high on the daily timeframe. A higher top higher bottom formation is visible on the daily timeframe. Besides, the Nifty has sustained above its major moving average suggesting a bullish trend. Over the short term, the index may remain positive as long as it sustains above 16100 with a potential to reach 16450-16500 over the short term."

Kunal Shah, Senior Technical Analyst at LKP Securities

"The Bank Nifty index continued its strong buying momentum and remains in a buy mode with immediate support at the 35,400 level. The index is likely to test the level of 36,200 on the upside where it faces resistance at the previous high level. The option front immediate resistance stands at 36,000 where the highest open interest is built up on the call side."