The market plunged on panic sell-off after the drone attacks on Saudi oil facilities sent crude prices soaring.
The Sensex fell 642.22 points or 1.73 per cent to 36481.09, while the Nifty shed 185.90 points or 1.69 per cent to 10817.60.
Asian markets fell as investors broadly remained on the sidelines ahead of an expected interest rate cut from the Federal Reserve on Wednesday and the next round of US-China trade talks on Thursday. Investor sentiment remained weak amid geopolitical uncertainties over the Saudi oil turmoil, trade war, and looming global economic slowdown.
The Small-Cap Index down 1.84 per cent, the Mid-Cap fell 1.77 per cent.
On the BSE, 857 shares rose and 1,668 shares fell.
On technical charts, On Tuesday Nifty50 spot could not sustain above 11000 and tested important support around 10800 levels, below the 20-day moving average. RSI looking weak on the daily chart and currently placed at 41.42 points. Along with this, in the weekly chart, Nifty50 seems to be consolidating between 50-day DMA with resistance around 11150 levels and 200-DMA as support around 10750 levels, he further said.
Overall the market looks bearish as the negative sentiments are prevailing after RBI’s statement on Monday, analysts said.
"The Nifty showing a sharp weakness on Tuesday, indicates a reversal of a recent upside bounce. The key overhead resistance of 11100 has acted as a strong resistance for the fourth occasions and resulted in a sharp decline. As per its previous reversal from the highs, one may expect further weakness in the next 1-2 sessions. The next lower levels to be watched at 10700 levels, Nagaraj Shetti, Technical Research Analyst, HDFC Securities said.
The Nifty saw heavy selling pressure led mainly by Large-Caps and Index breached the near term support of 10850 on the downside. Auto stocks led the downside followed by banking putting pressure on the Nifty. 10600 zone is the next downside support for the Nifty. It will be interesting to see if Nifty breaches 10740 on the downside in the near term. Nifty is likely to face resistance near 10970-11000 zone. Closing was on the weak side, said Amit Shah, Technical Research Analyst with Indiabulls Ventures.