bank nifty has broken the support line in july 13, unlike nifty which has still not broken the trend line there is a good amount of divergence in these two charts. Bank nifty has nearly 25% weightage in nifty so we can see nifty breaking the support line sooner or later. In case of bank nifty it has broken the support line below down and not attempting to conquer the fall.Time wise it has taken 15 weeks to fall from 13200 levels to 8400 levels and it is currently in 16th week of retracement which is more time than fall indicating that the rise is one of corrective nature and not impulsive.So it has all chances of facing resistance blue line which happens to be around 12450 levels. if it fails to move above this levels we can see it falling towards its low of 8400 so we have to keep a watch on this.

M.Sri Mahidar

Trend is Friend.