A morning walk down Dalal Street | Investors should watch out for Service & Composite PMI data

Another weak day for Indian markets. The Nifty50 failed to hold on to 11600 levels and dipped below 11,550 levels. It breached its 5 and 13-EMA but found support near its 20-EMA on daily charts on Tuesday.

A weaker currency and rising crude oil prices are a lethal combination for India. 

Rising crude oil price may spike inflation in near term, it also impacts our import bills

The Indian currency has touched a record high against dollar at 71.59, depreciating in value with no signs of recovery. 

This worsening macroeconomic situation put pressure on the markets for the second day in a row.

Fall in the Midcap and Small Indices were even sharper where both fell by over 2.5 percent each. 

The volatility has again risen on Tuesday breaking out from a falling trend line on weekly charts. India VIX, the volatility index, was up 2.87 percent at 13.7775. Volatility and market levels have an inverse relation.

Now, the support for the Nifty will now come in at 11,495 and 11,320 levels while bulls will only be able to reclaim momentum if the index manages to cross 11,620-11,700 levels on closing basis. 

On the macroeconomic front, investors should watch out for Service and composite PMI data for the month of August which will be announced later today.