A TECHNICAL UPDATE ON CNX-BANK NIFTY—3.1.2025

 

CNX-BANK NIFTY

Open—51084.95--High—51672.75--Low—50992.80--Close—51605.55 on 2.1.2025.

 

Support:/51138.90/51133.20/51000.90/50947.70/50865.45/50860.20/50841.90/50438.30/50382.10/50369.40/50194.30/49974.75/49904.40/49787.10/49688.80/49654.65/49057.40/48636.45/48292.25/48203.45/48161.75/47363.40/46983.75/46077.85/45828.80/45661.75/44633.85/44429/43600.25/43345.45/43230.95/42582.20/42105.40. 

Resistance:51693.50/51749.45/51749.45/52354.85/52493.95/52577.50/52760.20/52782.75/52794.95/53357.70/53531.30/53792.85/53888.30/54247.70/54467.35/54593/54604/54772/54815/54924/55097/55209/55444/55646/55740/55827/56135/56255.

OVERALL, VIEW: --

It opened on a positive note and thereafter had both side moves during the day and finally, ended the day with a gain of 544.95 points. Please note that it is often exhibiting volatility, which is not a good sign for a steady market.

The overall chart setup is still weak. But if it sustains above the range of 51484---51200(figures will change daily) on the closing basis then there is a chance that the up-move can extend. It is important to mention here that to keep the hope alive for the up-move in the year 2025 it has to sustain above 50860.20---50841.90 on the closing basis, break & sustained close below these points will immensely weaken it and downslide will begin. However moving down further the forthcoming important support points could be at 50818----50759.20----50652----50607.34----50492----50328-----50178(some figure may change daily) and then the last key support range is between 49787.10-----49654.65. Please note that it can bounce back from any of these points, but break & sustained close below 50607.34 can drag it down to 49790 or lower and thereafter break & sustained close below each point will weaken it further, break & sustained close below 50178 will jeopardize the long term uptrend and finally break & sustained close below 49654.65 may witness an accelerated fall. The short & medium term trend is down and the long term uptrend is also threatened. The bias is negative as of now.

Similarly moving up the key resistance points would be at 51830(figure will change daily). Please note that if it moves above the aforesaid point and sustain on the closing basis then the long term uptrend threat will dissipate and it can further extend the up-move. But please note that it may get good strength for the continuation of the up-move if it moves above 51980----52235-----52289---52564 & 52920.42 (figure may change daily) and sustain on the closing basis and finally to get back into the strong up-momentum track again it has to move above 53370.43---53531.30---53644.50 & 53888.30 and sustain on the closing basis.

TECHNICAL INDICATORS PLACEMENT ON THE DAILY CHART;-

It has crossed all its recent top on the line chart today, which is a positive sign, but it is below few of its short term moving average on the daily & weekly chart, it is below few of its medium term moving average on the daily chart and most importantly it is below few long term moving average also on the daily chart, which is threatening the long term uptrend and it is concerning. Furthermore all the important technical indicators are negative on the daily chart and maximum indicators are in the sell mode and negative divergence is there, but the comforting thing is that it is in oversold zone, therefore it may have a relief rally anytime but it is not likely to sustain and may fail and then it may resume the down move again (relief rally is on). It is also important to mention here that the price action is consistently weak for some time. Therefore in view of the above further fall is very much on the card in the coming days. So it is suggested to keep an eye on price action for further directional indication.

TECHNICAL INDICATORS PLACEMENT ON THE WEEKLY & MONTHLY CHART:-

On the weekly chart almost all the indicators are negative now, it has triggered sell signal in maximum indicators, and negative divergence is there and in overbought zone also. On the monthly chart it is in overbought zone and with huge negative divergence and maximum indicators are in the sell mode. Therefore all together indicators on the weekly & monthly chart as of now indicates that it is not yet out of woods and further fall is very much on the horizon in coming weeks and months and down move is on. So keep a watch on the price action for further directional indication.

IT IS SELL ON RISE MARKET NOW;-

It has slipped into deep correction mode today for its recent rise, therefore it is sell on the rise market now till it closes at least above 51820(figure will change daily) and sustain, but long trade can also be tried on decline near the critical support points or if it holds 50860.20---50841.90  on the closing basis then near it for intraday gains.

STRENGTH: -

1. It is in the long-term uptrend, but it is threatened today.

2. Its most critical points are 50860.20 & 50841.90; please note that it must stay above these points to keep up the up momentum going in the year 2025, else it will drift down.

3 It is above its long pullback threshold point of 50891.64(figure may change), sustained close above this point will help it to extend up-move.

4 It is above its short pullback threshold point of 51288.23(figure may change), sustained close above this point will help it to extend the up-move.

5. It has crossed its entire recent lower top on the line chart.

6. The price action was positive today.

WEAKNESS: -

1. Volatility and wild swing can be seen in the market quite often, which is not a good sign for a steady market condition and it can eventually drag it down may be drastically in the coming days/weeks and months. So be watchful.

2. Please note that indicators, on the weekly chart it is in the sell mode in maximum indicators, in overbought zone and with huge negative divergence & on the monthly chart, indicating overbought condition and with huge negative divergence and triggered sell mode also.

3. It is below few of its corrective threshold points of 53500.30-----53370.43---53331.55----52920.42---52487.43---52098.30------ (figure may change) and if it sustain below these points then it may extend the down move. The other important key correction threshold points are 51549.93---- 50725.73---- 49201.72---45416.49 (figure may change)  

4 It is below half of its short-term moving averages now on the daily chart and the important average range for day is between 52235----51742----51693-----51433-----51351---51179(figure will change every day), sustained close below this range can witness an accelerated down move..

5. All the seven technical indicators are negative on the daily chart with sell signal, distinct negative divergence, but in the oversold zone.

TRADING CALL: -- 

1. Long trade can be tried on decline near or within the range of 51435----51270 with a stop loss of 51100 for a possible intraday gain, else avoid. Please note that long trade in a corrective market could be a risky bet but can be tried at critical support point with strict stop loss for intraday gain.

2. Short trade can be tried on the rise near or within the range of 52150--52250 with a stop loss of 52350.It could be a risky trade but can be tried for intraday corrective gains.

NOTE: - If it opens up with huge gap up then wait for it to settle down before initiating long position, but short trade can be attempted on huge gap up if it is near the selling point and vice versa . Since, it is showing volatility so any type of trade should be squared off during the day, if you don’t have reasonable profit margin in the trade. Day squaring off is strongly suggested in any case.

Disclaimer:-The view expressed here are solely of the author and he is not at all responsible in any way for the outcome of the trade you enter based on the above view.

Kindly note that make your cost your stop loss in favorable trade and then trail it as the price move up/down to gain maximum profit and avoid losses. Use support and resistance levels as entry, exit, target and trailing stop loss points. DO NOT TRADE WITHOUT STOP LOSS. 

Note: Price stated here are of spot market. 

Thanks 

Narendra Kumar Surana

Email—suranank@gmail.com

Mobile—8240951127/9831313654.