17,600-17,625 critical support for Nifty Bank index

If FPI selling continues, the rupee could collapse to historic lows

The stock market ended 2016 on a note of recovery with short-covering driving up the Nifty. However, banks took a hammering on Monday and that led to a crack in the overall market uptrend. The sops handed out in the PM's latest speech, and the following rate cuts by banks have not been well-received, at first glance.

The Nifty has performed a pattern of a three month low (7,893 in late December) followed by a sequence of lower highs. Early December saw intra-day Nifty highs in the 8,250-8,275 range. The market turned down on January 2 from the levels of