A morning walk down Dalal Street | Nifty can breakout above 11,081 if it sustains above 10,945

A weak day for Indian markets which was largely weighed down by muted global cues, but the pullback in the last one hour helped Nifty close above 11,000 levels on a closing basis was a bullish sign.

The market pulled back slightly towards the close of the trade given the fact that there was strong support near 11,000 (second highest Put OI).

Final Tally -- the S&P BSE Sensex dropped 261 points while Nifty50 closed 72 points lower to 11,003.

The sudden jump in crude prices developed concern over higher inflation and ability of RBI to cut interest rate in the future. Crude oil price which rose above $70/bbl have pulled back slightly and is now trading around $65/bbl.

Goldman Sachs said an outage of more than six weeks due to drone attacks on Saudi Arabian oil facilities over the weekend could cause Brent prices to rally above $75 a barrel, although the magnitude of the impact was uncertain at this point.

Drone strikes on Saudi’s oil processing facilities have added to the trade war related uncertainties and deteriorated market condition globally.

There is another commodity which hogged the limelight and that was Gold. Gold Futures rallied by more than Rs 500 and was trading above Rs 38000 per 10 gm.