Bank Nifty drags markets to close in the red

The late session fall in Bank Nifty changed the direction of the market, leading to a marginal fall in the benchmark indices. The benchmark indices, which were trading flat to positive, tumbled at 2.00 p.m. with correction in Bank Nifty, despite the outperformance of the pharma sector. Bank Nifty was thereby one of the lead draggers, with 0.7 per cent loss from its previous close. Canara Bank tumbled the most with 2 per cent loss, while ICICI Bank, which holds 17.5 per cent weightage in Bank Nifty, tumbled 1.8 per cent, whereas SBI, which forms 10.6 per cent of Bank Nifty, fell 1.2 per cent. Technically, Bank Nifty yet again resisted at its multiple point downward sloping trendline level at 25733. Bank Nifty has made multiple attempts to breach the trendline level, but it has not succeeded up till now. The index has corrected only up to 23.6 per cent retracement level of the prior upward rally on a closing basis. Hence, going forward, price surging above 25730-25735, its major resistance level, would help Bank Nifty gain upside momentum. The levels of 25780 and 25955 will act as next immediate resistances. However, the 14-period RSI negative crossover may lead to continuation of the correction for some more time, and hence, we hold 25500-25430, followed by 25335, as immediate supports.