A TECHNICAL UPDATE ON CNX-BANK NIFTY—16.4.2025

 

CNX-BANK NIFTY

Open—52299---High—52486.35---Low—51863.30---Close—52379.50 on 15.4.2025.      

Support:52354.85/51979.75/51749.45/51749.45/51693.50/51138.90/51133.20/51000.90/50947.70/50860.20/50841.90/50641.75/50438.30/50382.10/50369.40/50194.30/49974.75/49904.40/49836.10/49787.10/49688.80/49654.65/49459/49300/49162.65/49057.40/48972.55/48906.05/48839.10/48734.35/48636.45/48525.60/48292.25/48203.45/48161.75/48074.05/47898.35/47844.15/47363.40/46983.75/46077.85/45828.80/45661.75/44633.85/44429/43600.25/43345.45/43230.95/42582.20/42105.40. 

Resistance: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 with a huge up-gap and thereafter it had both side moves during the day and finally ended the day with a huge gain of 1377.15 points. The gap it created today and on 11.4.2025 is still there and if it makes an effort to fill the gap in next 4—5 & 3—4 respective trading sessions, which is technically possible then it can come down to 51244 & 50496, but if it fails to fill the gap within 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 looks good as it is making higher top & bottom on the line & bar chart and above all the short, medium & long term moving average on the daily, weekly & monthly chart, therefore it looks good for the continuation of the up-move. Please note that if it holds 52063.95 and then the range of 51564.85---51328---51178.25 then the up-move is likely to continue. But in worst case scenario even if it holds 50860.20 &50841.90 chances of up-move will be alive.

Similarly moving up the broad resistance points could be at 52429----52652----52871---53114.46, it could correct at any of these points and then may resume the up-move or rally can fizzle out also, but if it moves above 52652 & 53114.46 and sustain on the closing basis then it could retest one of its top of 53888.30 and its ultimate top of 54467.35 or may go beyond it also.     

TECHNICAL INDICATORS PLACEMENT ON THE DAILY CHART;-

It has made higher top & bottom on the line and bar chart; it is above all its short, medium and long term moving average on the daily, weekly & monthly chart, which is positive sign for moving up further. Furthermore few important technical indicators has turned positive and in the buy mode now, but it is showing negative divergence and also in the overbought zone, so, it may correct at times , provided it does not sustain above its crucial support point as mentioned in the above paragraph. Therefore in totality it is emitting mixed signal now with slight positive bias as of now.  So, please keep an eye on the critical resistance & support points and price action for further directional indication.

TECHNICAL INDICATORS PLACEMENT ON THE WEEKLY & MONTHLY CHART: -

On the weekly chart indicators are giving mixed signals few in buy, few in sell mode, there is a negative divergence too and it is in the overbought zone, so it can correct at times. 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 for the up-move , but on the monthly chart it is not yet out of woods therefore further fall may be on the horizon in coming weeks or  months.

IT IS BUY ON DECLINE MARKET  AS OF NOW;-

It is into deep correction mode for its earlier rise, but it is above all its pullback threshold points, therefore it is buying on decline market now till it holds 52063.95 and then the range of 51564.85---51330---51178.25 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.

STRENGTH: -

1. Few technical indicators are positive now and in the buy mode.

2. It is above its medium & long pullback threshold point of 49162.65----49300 (figure may change), sustained close above these points can help it to extend the up-move.

3. It is above its most crucial bottoms of 50369.40 & 49654.65, if it sustains above it on the closing basis then the chances of the up-move will be very good.

4. It is above its recent fall pullback threshold point of 49843 (figure may change), sustained close above this may help it to extend the up-move.

5. It has made higher top & bottom on the line & bar chart.

6. It is above its most critical points of 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.

7. It is above all its short-term moving averages now on the daily chart and the important average range for day is between 51083--51066--51041---51018---50650----50633(figure will change every day), sustained close above this range may help it to extend the up-move.

8. It is above all its long-term moving averages now and the whole range is between 51328---49740 (the range will change every day). Please note that as long as it sustain above 51328(figure will change every day) on the closing basis then the hope of up-move will be alive and it may extend the up-move for sure.

9. It is above its recent correction threshold point of 51034.67(figure may change).

10. 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. RSI is showing negative divergence and it is in the overbought zone on the daily chart, so, it can correct at times.

TRADING CALL: -- 

1. Long trade can be tried on decline near or within the range of 52223---52100 but not below it with a stop loss of 52000 for a possible intraday gain, else avoid.

2. Short trade can be tried on the rise near or within the range of 52900—53000 with a stop loss of 53150. 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.