A morning walk down Dalal Street | Relief for bulls only if Nifty closes above 11,425, crucial support at 11,250

Indian market fell for the second day in a row on Tuesday with Sensex falling nearly 300 points while the Nifty50 cracked by about 100 points.

The S&P BSE Sensex closed 294 points lower at 37,290 while the Nifty50 ended 98 points down at 11,278. Last hour selloff broke the back of bulls. Rise in crude oil prices, trade war fears as well as fall in the currency are some of the factors which weighed on sentiment.

Selloff in the last couple of hours ensured that the rupee ended the session at a record low. The currency closed at 72.97 per US dollar on Tuesday, according to Reuters. It fell to 72.98 per US dollar mark on an intraday basis, data further revealed.

Two sectors faced the selling pressure: Nifty Bank which slipped 378 points weighed down by losses in SBI, Bank of Baroda, PNB, Federal and Axis Bank. ICICI Bank and SBI contribute around 200 points to Nifty Bank’s fall. BoB slipped 16.3 percent as brokerage firms downgraded the stock and reduced target price post govt’s proposal of merger with Vijaya Bank and Dena Bank.

For Wednesday, 11250 will act as a crucial support for the index, and if the index slips below 11,250 there is a higher probability that it could slip towards 11,130-11,050.

Relief for bulls can be expected only on a close above 11,425 levels.