A TECHNICAL UPDATE ON CNX-NIFTY-27.3.2025

 

CNX-NIFTY

Open—23700.95—High—23736.50---Low---23451.70---Close---23486.85 on 26.3.2025.

Support:23484.15/23426.30/23391.65/23338.70/23263.15/23110.80/23049.95/23047.25/22976.85/22794.70/22786.90/22775.70/22768.40/22676.75/22625.30/22577.40/22546/22525.65/22502/22314.70/22303.80/22281/22165/22124.70/22104.85/21964.60/21875.25/21860.65/21821.05/21777.65/21710.20/21530.20/21448.65/21281.45/21137.20/21021.88/20976.80/20769.50/20291.50/20222.45/19991.85/19839/19333.60.

Resistance:23537/23637.65/23644.80/23664/23667.20/23807.30/23816.15/23873.35/23893.70/23938.85/24073.90/24094.20/24099.70/24141.80/24354.55/24472.80/24498.20/24537.60/24694.35/24753.15/24792.3024854.80/24857.75/25078.30/25234.05/25285.55/25333.65/25445.70/25871.35/26277.35/26328/26995/27095/27212/27293/27381.

OVERALL VIEW ON THE DAILY CHART: --

It opened on a positive note and thereafter had both side moves during the day and finally, ended the day with a loss of 181.80 points. It corrected sharply today after 7 days of straight rise. However it is still looking good for the continuation of the up move, but further down move cannot be ruled out as yet, so be cautious. Furthermore the gap it created on 24.3.2025 and on 20.3.2025 is still there and if it makes an effort to fill the gap in next 2—3 & 1 trading sessions respectively, which is technically possible then it can come down to 23402 & 22940, but if it fails to fill the gap in the stipulated time then the chances of filling the gap will recede for the time being, but one day it will fill the gap for sure. Please note that it is often exhibiting volatility, which is not a good sign for a steady market.

The technical setup still looks o.k. for the up-move to continue, but today it slipped below its most critical points of 23644.80 & 23637.65, which is a weak sign.  Please note that to keep the chances of continued up move alive in the year 2025 it has to stay above these points on the closing basis, else it will weaken the chances of the up-move. Furthermore it also slipped into the short correction mode today for its recent rise as it closed below its threshold point of 23502.64(figure may change). However it is still above few other important & critical points, such as above its deep correction threshold point of 23420.02(figure may change) and above few of its long term moving averages and the last one is placed at 23284(figure will change every day) and it is above is major rising trend line which is placed at 23250 for the month of April-2025. Please note that as long as it holds 23420.02—23284 & 23250 points on the closing basis there is a hope that it can bounce back and may resume the up-move again. But break & sustained close below 23420.02—23284 & 23250 may trigger fresh fall again and can drag it down sharply and the up move may end for a while. Moving down further it’s major and most critical or make or break support range is between22798.35---22794.70---22783.35---22775.70---22774.75---22768.40---22725.45, it could sharply bounce back from this range and may resume the broad up-move again, but break & sustained close below this range may witness an accelerated fall. The short & medium-term trend looks up but the long-term uptrend is still under threat as of now.    

Moving up the key resistance points would be at 23502.64----23637.65---23644.80-----23778-----23893.70----23906-----23964----24080----24205(some figures may change daily). , if it moves above 23502.64 it will come out of its recent short corrective mode. Please note that  it has to move above 23637.65 & 23644.80 and sustain on the closing basis to keep the hope alive of a good up-move in the year 2025, else it may start to drift down, 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 base and then the up move is likely to extend further for sure and if it moves above the range of 23964----24080----24205 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. Moving up further the broad resistance points could be at 24280----24630---24753.15---24858----25260---25415, it could correct at any of these points and then the rally may resume or can fizzle out also, but if it moves above 24753.15 and sustain on the closing basis then it may get into strong up-momentum track and if it moves above 25415 and sustain on the closing basis then it could retest its ultimate top of 26277.35 or may go beyond it.

 HEAD & SHOULDER PATTERN VISIBLE ON THE DAILY CHART:- The downside target of the pattern was in the range of 21850---21510 and it hit a low of 21964.60, so it has almost achieved the downside target upper band. But till it moves above its neckline of 23893.70 the downside threat is always there and it could trigger fall again.

TECHNICAL INDICATORS PLACEMENT ON THE DAILY CHART;-

It has crossed its lower tops on the line & bar chart both and on the bar chart it is making higher top & bottom, it is above all its short term moving average on the daily, weekly and majorly above monthly chart, it is majorly above all medium term moving average on the daily & majorly above weekly chart, but most importantly it is still majorly below  its long term moving average on the daily chart, which is still a severe threat to the long term uptrend and it is highly concerning as of now. But please note that almost all the important technical indicators are positive now and majorly in the buy mode and with huge positive divergence but in the deep overbought zone now, so, it may correct at times and it corrected today. But, it is emitting positive signal now therefore likely to continue the up-move in coming times with in between correction and till it holds its key support points as mentioned in the above paragraph. So, please keep an eye on the critical resistance & support points and price action for the further directional indication.

TECHNICAL INDICATORS PLACEMENT ON THE WEEKLY & MONTHLY CHART:-

On the weekly chart certain indicators has turned positive now, although it is in the sell mode in the few indicators, but there is  huge positive divergence and is in the oversold/neutral zone, so it can rally further from here. On the monthly chart it is in overbought/ neutral zone and with huge negative divergence and with MACD in the sell mode. Therefore, all together indicators on the weekly chart seems positive but on the monthly chart it is not yet out of woods and further fall is very much on the horizon in coming weeks or  months . 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 & in short correction for the recent rise, but it is above all its pullback threshold points, therefore it is buy on decline market now till it holds the range of 23420.02—23284 & 23250 on the closing basis, but short trade can also be tried after a reasonable rise and near critical resistance points with strict stop loss, for intraday corrective gains. But for safe traders it is suggested to try long trade only if it moves above 23637.65 & 23644.80 and sustain on the closing basis.

STRENGTH: -

1. All the important indicators are positive on the daily chart and majorly in the buy mode and with positive divergence.

2. It is above its short, medium & long pullback threshold point of 22400---22648 & 22983 (figure may change), sustained close above these points can help it to extend the up-move.

3 It is above all its short-term moving averages now on the daily chart and the important average range for day is between 23280----23174----23047----22980---22940---22714(figure will change every day), sustained close above this range may extend the up-move.

4. The long-term uptrend is still in jeopardy as it is majorly below its long-term moving averages but above few which is placed in the range of  22403---23284 (figure will change every day) for the day. Please note that as long as it holds 23284 on the closing basis chances of up-move will be good.

5. It crossed it previous lower top on the line & bar chart.

6. It is above its recent deep correction threshold point of 23420.02(figure may change).

7. It is above its most critical points of 23637.65 & 23644.80, 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 sharply.

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. It is in the deep overbought zone on the daily chart, so it may correct.

3. It is below its recent short correction threshold point of 23502.64 (figure may change).

4. The price action was weak today.

TRADING CALL: --

1. Long trade can be tried on decline near or within the range of 23300-----23250 for some time with a stop loss of 23180 for a possible intraday gain, else avoid. Please note that it slipped into short correction mode today, therefore trying long trade in the correction mode could be a risky affair.

2. Short trade can be tried on the rise near or within the range of 23650---23690 with a stop loss of 23760 or can sell if it moves below 23450 and maintain for some time with a stop loss of 23525. 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