A morning walk down Dalal Street: Nifty may witness significant correction if it breaks below 11,210

Another day of consolidation in Indian markets, following weak global cues as well as profit booking in the market. The Sensex saw a cut of over 300 points, while the Nifty closed below 11,250 as well.

India still managed to outperform the global indices which were mired in the red with a higher percentage of losses weighed down by trade war fears. 

After a status-quo policy from US Federal Reserve on Wednesday, the Bank of England has raised interest rates to 0.75 percent from 0.5 percent, highest level since early 2009.

Monetary tightening is likely to weigh on markets across the globe.

There may be some overdue correction in Nifty technically as we have extended in terms of price action on the upside. 

The next resistance is placed at 10380 - 10390 which will continue to remain strong and further today's loss cements the bear's aggressiveness to defend it. 

On the downside, support is seen at 10180 - 10200. These are levels to be watched by bulls. A close below 10900 will put further pressure on markets.