Fortune could not be always favourable to the besieged. By a chance ball from the enemy, one of the galleys which brought relief was sunk downright with 40 men and goods to the value of 40,000 ducats. But, next day, Ferdinand Tellez made a sally with 400 men, and gained a victory equal to that of Gonzalez de Camara, and brought away one piece of cannon with some ammunition, arms, and other booty. This action was seen by the Nizam in person, who mounted his horse and threatened to join in it in person, for which purpose he seized a lance, which he soon changed for a whip, with which he threatened to chastise his men, and upbraided them as cowards. The Portuguese were now so inured to danger that nothing could terrify them, and they seemed to court death instead of shunning it on all occasions. Some of them being employed to level some works from which the enemy had been driven near the monastery of St Francis, and being more handy at the sword than the spade, drew upon themselves a large party of the enemy of whom they slew above 200, yet not without some loss on their side. About this time Farete Khan, one of the Nizams generals, made some overtures towards peace, but without any apparent authority from his sovereign, who caused him to be arrested on suspicion of being corrupted by the Portuguese, though assuredly he had secret orders for what he had done. Indeed it was not wonderful that the Nizam should be desirous of peace, as he had now lain seven months before Chaul to no purpose, and had lost many thousand men; neither was it strange in the Portuguese to have the same wish, as they had lost 400 men besides Indians.
When the siege had continued to the beginning of June the attacks and batteries were carried on by both sides with as much obstinacy and vigour as if then only begun. The house of Nunno Alvarez was at this time taken by the enemy through the carelessness of the defenders, and on an attempt to recover it 20 of the Portuguese lost their lives without doing much injury to the enemy. The Moors in the next place got possession of the monastery of St Dominic, but not without a heavy loss; and then gained the house of Gonzalo de Menezes, in which the Portuguese suffered severely. The hostile batteries kept up a constant fire from the end of May to the end of June, as the Nizam had resolved to make a breach fit for the whole army to try its fortune in a general assault. On the 28th of June, every thing being in readiness, the Nizams whole army was drawn out for the assault, all his elephants appearing in the front with castles on their backs full of armed men. While the whole army stood in expectation of the signal of assault, an officer of note belonging to the enemy was slain by a random shot from one of the Portuguese cannon, which the Nizam considered as an evil omen, and ordered the attack to be deferred till next day. On this occasion six of the garrison ventured beyond the works and drew a multitude of the enemy within reach of the Portuguese fire, which was so well bestowed that 118 of the enemy were slain and 500 wounded, without any loss on the side of the defenders.