A morning walk down Dalal Street | Momentum still favours bears, crucial support for Nifty at 11,000

Indian market which started off with a mild gap-up failed to keep the momentum and slipped in the red in the last 90 minutes of the trade. The S&P BSE Sensex fell by nearly 300 points while Nifty50 closed below 11,100.

The Nifty broke below the 200-day moving average (DMA), to close at a level last seen in March 2019 and Sensex below 37,400, a level last seen in May 2019.

The Nifty Midcap index closed 2 percent down, hitting its lowest level in 30 months. The Nifty Bank is set for the biggest monthly fall since September 2018, as it plunged 500 points in a day for the third time in July.

The broader market indices ‘BSE Midcap and BSE Smallcap’, too, ended lower by 1.6 percent and 2.1 percent, respectively.

Investors would watch out for the FOMC outcome later in the day. On the economic front, Infrastructure output data for the month of June will be watched out for. On the global front, any positive outcome from the negotiations between US-China for trade tariffs could also provide direction to the markets, suggest experts.