A TECHNICAL UPDATE ON CNX-NIFTY-11.2.2025

 

CNX-NIFTY

Open—23543.80—High—23568.60---Low---23316.30--Close---23381.60 on 10.2.2025.

Support:23338.70/23263.15/23110.80/23047.25/22976.85/22794.70/22775.70/22525.65/22303.80/21875.25/21860.25/21821.05/21777.65/21710.20/21530.20/21281.45/21137.20/20976.80.

Resistance:23391.65/23426.30/23484.15/23537/23637.65/23644.80/23664/23667.20/23816.15/23873.35/23893.70/23938.85/24073.90/24094.20/24099.70/24141.80/24354.55/24472.80/24498.20/24537.60/24694.35/24753.15/24792.3024854.80/24857.75/25078.30/25234.05/25285.55/25333.65/25445.70/25871.35/26277.35/26328/26995/27095/27212/27293/27381.

OVERALL VIEW ON THE DAILY CHART: --

It opened on a flat to negative note and thereafter had both side moves during the day and finally ended the day with a loss of 178.35 points. Please note that it has filled the gap today ,which it had created on 4.2.2025(the gap point was 23381). Please note that it is often exhibiting volatility, which is not a good sign for a steady market.

The technical setup on the daily chart has started showing weakness again as it is below almost all its recent critical support points of 23669.17---23644.80---23637.65----23620----23611--23566.49---23504 (some figure may change), which is a weak sign and if it remains below these points then chances of an up-move in the year 2025 will get murkier and it may keep on moving in the downward trajectory. Furthermore, it is into deep correction mode now for its recent rise as it is below its threshold point of 23566.49 & 23504 and if it remains below it then further fall looks inevitable in coming days. However moving down it could find support at 23339----23304----23297----23222----23176----23028 & 22991(some figure may change) and it may bounce back from any of these points, but break & sustained close below 22991 may trigger fresh fall and then moving down further its most important & critical support points could be at 22794.70---22786.90---22768.40 & 23725, break & sustained close below these points and particularly below 22725 which is major rising trend line count for the month may trigger fresh fall and it may witness an accelerated fall and then the next strong support points would be at 22281—22165---21821---21710 and it could bounce back from this range, but break and sustained close below this range can drag it down to 21150 or lower, which may please be noted. It is important to mention here that as of now it is still weak on the weekly & monthly chart technical parameters  therefore it is  not yet out of woods and may witness moderate to sharp fall in coming weeks & months, but it has to reviewed at regular interval for any potential positive/negative change.  The short and medium-term trend is down and the long-term uptrend is severely threatened and in jeopardy now.

Similarly moving up the key resistance points would be at 23504---23566.49----23611----23618----23637.65----23644.80---23669.17---23744----23893.70----23922----24044-----24043----24160----24295(figures will change daily). Please note that, if it moves above the range of 23504---23566.49----23611----23621----23637.65----23644.80---23669.17 and sustain on the closing basis then the hope of continuation of the up-move will be alive in the year 2025, if it move above 23893.70 and sustain on the closing basis then it will get a good foothold to build the strong up-move and then the up move is likely to extend further and if it moves above the range of 24043----24160----24295 and sustain on the closing basis then the long term uptrend threat will dissipate and it may somewhat ensure that up-move can extend further for sure. But to get good strength for the continuation of the up-move and to get into strong up-momentum track it has to move above 24481.42---24625.43---24753.15---24857.75 & 25078.30 (figure may change) particularly above 24753.15 and sustain on the closing basis.

HEAD & SHOULDER PATTERN VISIBLE ON THE DAILY CHART:-It is still  below its neckline which is placed at 23893.70 and if it sustain below it on the closing basis then the maximum downside target could be in the range of 21850---21510. Please note that this pattern will be partly negated if it moves above 23893.70 and sustain and it will be fully  negated if it moves above 24857.75 & 25078.35. This is a very powerful pattern and rarely fails. It is therefore suggested that do not remain short if it closes above the neckline of 23893.70 and sustain, similarly do not remain long if it closes below it.

TECHNICAL INDICATORS PLACEMENT ON THE DAILY CHART;-

It still has higher top & bottom on the line & bar chart and  it is above only one of  its short term moving averages on the daily chart, also above only one medium term moving averages on the daily & and few on the weekly chart , which is only a slight positive  sign for the continuation of the up move,  but it is still below almost all its short term averages on the daily chart, below all on the weekly & below few on the monthly chart also, it is also below almost all its medium term moving average on the daily chart & below few averages on the weekly chart too and most importantly it is below all its long term moving average on the daily chart, which is  a severe threat to the long term uptrend and it is highly  concerning and jeopardized the long term uptrend. Furthermore now only three out of seven important technical indicators are positive and all are in buy mode, but four out of seven indicators are negative now, one with negative divergence and rest in sell mode and in overbought zone , therefore, in totality it is emitting mixed signal broadly towards weakness and may move down further in coming day if it does not bounce back above 23645 and sustain on the closing basis in the shortest possible time. Please keep an eye on the price action for further directional indication.

TECHNICAL INDICATORS PLACEMENT ON THE WEEKLY & MONTHLY CHART:-

On the weekly chart almost all indicators are negative, sell mode is on in four indicators, there is huge negative divergence but it is in the oversold zone and may stage a recovery but that may not last. On the monthly chart it is in overbought zone and with huge negative divergence and MACD has triggered sell. 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 the down move is on. So, keep a watch on the price action for further directional indication.

IT IS BUY ON DECLINE MARKET AS OF NOW;-

It is into deep correction mode for its earlier & recent rise, but pullback mode is on therefore  buy on decline can be tried  at appropriate support point  with strict stop loss , similarly short trade  can also be tried  after reasonable  rise at appropriate resistance points  with strict stop losses for intraday corrective gains. As long as it holds 23304 on the closing basis long trade can be tried with appropriate stop losses, else avoid.  

STRENGTH: -

1. It is above its very short, short & medium pullback threshold point of 22938---23127 & 23276 (figure may change), sustained close it may help it to move-up further.

2. Three out of seven technical indicators are positive on the daily chart with all in buy signal.

3. It still has higher top & bottom on the line & bar chart.

WEAKNESS: -.

1. Please note that almost all indicators on the weekly chart are negative indicates oversold condition, sell mode is on and negative divergence and finally on the monthly chart it indicates overbought condition and negative divergence.    

2. 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.

3. It is into correction deep mode now as it closed below some of the correction threshold points of 26043.29----25917.64---25714.81----25098.32-----25064.27-----24625.43-----24521.63--- 24481.42-----24047.39----23669.17---23566.49 (figures may change). The other important correction threshold point is 21848.52 (figure may change) and if it sustain below these points correction will deepen.

4. Four out of seven technical indicators are negative on the daily chart with all in buy signal.

5. It is still below almost all its long-term moving averages therefore severely threatened the uptrend.

6. It is below its long pullback threshold point of 23611 (figure may change), sustained close below it can weaken the chances of an up-move.

7. It is below its most critical points of 23644.80 & 23637.65; please note that it must stay above these points to keep up the up momentum going in the year 2025.

8 It is below almost all its short-term moving averages now on the daily chart and the important average range for day is between 23526----23475----23460----23436---23384---23304(figure will change every day), sustained close below this range may accelerate the down move.

9. The price action was negative today.

TRADING CALL: --

1. Long trade can be tried on decline near 23304 but not below it with a stop loss of 23210 for a possible intraday gain, else avoid. Please note that long trade in a corrective market could be a risky affair but can be tried near critical support points for intraday gains.  

2. Short trade can be tried on the rise near or within the range of 23560----23600 with a stop loss of 23670. 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

Mobile—8240951127/9831313654.

Email--- suranank@gmail.com