Nifty may fall 300 points on breach of 5600-5550: analysts

India's benchmark Nifty index came close to breaching the 5,600 mark in trade on Tuesday. A test of 5,600-5,550 levels could open up serious downsides for markets, market analyst Sarvendra Srivastava told NDTV.

"The selling seems to be relentless and if these levels (5,600-5,550 are breached), the Nifty can fall another 300 points," Mr Srivastava said.

Indian markets are on track for their ninth loss in ten sessions amid a sharp plunge in the rupee, which hit a record low today. The 50-share Nifty benchmark has shed over 400 points in the last ten sessions.

"Immediate support for Nifty is at 5649, while stiff resistance is at 5720," HDFC Securities said in a note.

Extreme weakness in the Bank Nifty, which is trading below its key support of 10,000 levels, has further pressured the broader markets.

"The Bank Nifty trading range is seen between 9,850-10,200," Mr Srivastava said.

A bounce back is likely because markets are oversold, but the current selling pressure from oversold levels is a big concern, Mr Srivastava added.

Traders should wait and watch for a couple of days, he added.

The Sensex traded 214 points lower at 18,969 as of 11.25 a.m., while the Nifty traded down 75 points at 5,610. The rupee weakened to 61.50 against the U.S. dollar.