The market continued facing intense selling pressure with the Sensex plunging 509.04 points, or 1.34 per cent, to settle at 37,413. The Nifty 50 Index fell 150.60 points, or 1.32 per cent, to settle at 11,287. The Mid- and Small-cap stocks also faced huge sell off with the BSE Mid-cap Index going down by 1.36 per cent, and Small-cap Index falling 1.37 per cent.

Technical view

Rahul Sharma, senior technical research analyst, Equity99, said: “The market opened on a positive note, but huge selloff was seen in second half of the day and finally closed with big negative sign. Asian markets were closed mix, while European markets opened positive and turned negative, but weak rupee was the main concern for our market.

The currency hitting fresh low of 72.74 against dollar creates more worries over fiscal slippages. Bond yield is continuously going up so Banking and NBFC stocks were the top losers in second straight day.

“The Nifty has formed big red candlestick with lower top lower bottom formation which is a negative sign. Short-term moving averages turned negative. Also, the Nifty has given close below its 50 days EMA. For today’s trading, 11,235 will act as strong support, break with volume will create fresh panic up to 11,185. We are expecting on pullback rally between 11,185-11,235 level. On the upper side, 11,390 will act as strong resistance.”

Market view

Jayant Manglik, president, Religare Broking, said: “With lack of any positive triggers on the domestic bourses and ongoing global uncertainties, weakness in market could continue in the coming sessions. The near term direction will be dictated by key domestic macro data like July IIP, Aug CPI (due tomorrow) & Aug WPI (due on September 14). Further, the strengthening crude oil prices, weakening rupee (vs dollar), widening CAD and mounting tensions over trade war is certainly a worrisome factor for the Indian market and could continue to induce high volatility in the index. We advise investors and traders to remain selective in stock picking.”

—Ashwin Punnen