NEW DELHI: Escalating US-China trade tensions are testing investor nerves. Will the fresh round of flare up -- China's retaliatory tariff hikes on $60 billion US goods -- result in 10th day of consecutive fall for domestic indices?

Let us check out the factors which may bring action to the domestic market on Tuesday:

TRADE SETUP

• Tech view: Nifty forms bearish candle
  On the weekly chart, the index is tumbling as a follow through of an ‘Inside Bar’ breakout on the downside, said Gaurav Ratnaparkhi of Sharekhan. “Nifty has broken several key supports, the latest one is 11,200. . The trendline is placed near the 11,000 mark, which is the short-term target for Nifty."

• Oil prices edge higher
  Oil prices inched higher on Tuesday, though gains were checked amid an escalation in the trade war between the United States and China. Brent crude futures were at $70.27 a barrel, up 6 cents, or 0.1 per cent, from their last close. US WTI crude futures were at $61.17 per barrel, up 12 cents, or 0.2%, from their previous settlement. WTI closed the last session steady on the day.

• DIIs buy Rs 1,058 crore worth of equities
  Foreign portfolio investors (FPIs) sold Rs 1,056.01 crore worth of domestic stocks on Monday, data available with NSE suggested. DIIs were net buyers to the tune of Rs 1,057.91 crore, data suggested.

MONEY MARKETS

• Rupee tanks: The rupee on Monday tanked by 61 paise to close at over two-month low of 70.52 against the US dollar on rising crude oil prices and weak industrial output growth data. Subdued domestic equity market and foreign fund outflows further dented forex market sentiment.

• 10-yr bond yields: India 10-year bond yields remained unchanged at 7.41% on Monday, according to RBI data.

• Call rates: The overnight call money rate weighted average was 5.95% on Monday, according to RBI data. It moved in a range of 4.50-6.10%.

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'I feel sorry for the next finance minister, economy is in bad shape'

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MACROS

• Retail inflation rises 2.92% in April
  India's retail inflation rate hit a six-month high in April, due to bigger increases in food prices, but remained below the central bank's target for a ninth month, keeping hopes alive for a June cut in the key interest rate. Annual retail inflation in April was 2.92%, up from the provisional 2.86% in the previous month, but slightly below analyst forecasts, government data showed on Monday.

• Govt wants CPSEs to exit loss-making state-level entities
  Investments by central public sector enterprises (CPSEs) in state-level entities have come under the government’s radar. It is set to review these investments as part of a restructuring exercise to ensure that these CPSEs are not saddled with unrelated ventures or loss-making firms, reports ET. In all, there are around 500 state level public enterprises (SLPEs), of which 200 are loss making.