A TECHNICAL UPDATE ON CNX-BANK NIFTY—3.4.2025

 

CNX-BANK NIFTY

Open—50966.90---High—51404.40---Low—50908.35---Close—51348.05 on 2.4.2025.   

Support: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:51693.50/51749.45/51749.45/51979.75/52354.85/52493.95/52577.50/52760.20/52782.75/52794.95/53357.70/53531.30/53792.85/53888.30/54247.70/54467.35/54593/54604/54772/54815/54924/55097/55209/55444/55646/55740/55827/56135/56255.

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 520.55 points. Please note that it is often exhibiting volatility, which is not a good sign for a steady market.

The technical setup is still dicey as it has lower top & bottom on the line chart, but it has bounced back sharply and moved above all its recent critical points, which is very good sign for the continuation of the up move, but it has to be seen in the next 1-2 trading session whether it will last or not.  It is above 50841.90 & 50860.20, please note that it is essential to stay above these points to keep the chances of a continued up move alive in the year 2025. Furthermore it gotten out from the recent rise correction mode as it closed above its threshold point of 51034.67(figure may change) and also moved above its recent fall pullback threshold point of 51053.98(figure may Change), and most importantly it has moved above all its long term moving averages and the top average is placed at 51337(figure will change every day) for the day. Therefore please note that if it manages to hold the above points on the closing basis then it can extend the up-move. But please note that break & sustained close below each  aforesaid points will weaken it and may  trigger fall again and it could head down to its first make or break bottom of 50369.40, it is a strong bounce back point, but if it break & sustain below it on the closing basis then it could drift down to its second and most important make or break bottom of 49654.65 this is the ultimate bounce back point, but break and sustained close below it may accelerate the fall  and  the up move may end for a while and will also put the long term uptrend in potential danger.  Moving down further broad support points could be at 49368---48731---48574, it could bounce back from any of these points, but break and sustained close below 48574 can drag it down to the range of 47756---47745---47702, this is a very strong bounce back range, but break & sustained close below this range can take it down further to the range of 46437---46077 and sustained close below this range can drag it down to 44500 levels or lower, which may please be noted.

 Similarly moving up the broad resistance points could be at 51403----51559-----51752----51800 (some figures may change), it can correct at any of these points, but if it moves above 51800 and sustain on the closing basis then it could retest its recent high of 52063.95 or may go beyond it also. Please note that if it sustains above 52063.95 on the closing basis then the next broad resistance or target points could be at 52429----52652----52871---53888----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 lower top & bottom on the line and bar chart, but it is above all its short, medium & long term moving averages on the daily, weekly & monthly chart, which is good for the continuation of the up-move. Furthermore all the important technical indicators are positive now with majorly in the buy mode and with positive divergence, but it is in the overbought zone on the daily chart, so, it may correct at times, so all together it is emitting positive signal therefore likely to move up further, but for the last two days it had see-saw movement therefore it has to be seen for the next 1-2 trading sessions how it pans out.  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 almost all the indicators are positive now and majorly in the buy mode and most importantly MACD & ADX has turned into the buy mode, but 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 buy on decline market now till it holds the range of 51337---51053.98---51034.67 and then finally it holds 50860.20 & 50841.90 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. Almost all the important technical indicators are positive now with majorly in the buy mode.

2. It is above all its short-term moving averages now on the daily chart and the important average range for day is between 51240--51019--50831---50393---50211----49695(figure will change every day), sustained close above this range may witness an extended up-move.

3. 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.

4. It is above its most crucial bottom of 50369.40 & 49654.65, if it sustains above these on the closing basis then the up-move is likely to extend further for sure.

5. It is above its recent fall pullback threshold point of 51053.98 (figure may change), sustained close above this may help it to extend the up-move.

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

7. 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.

8. It is above all its long-term moving averages and the whole range is between 51337---49681 (the range will change every day). Please note that if it sustain above 51337(figure will change every day) on the closing basis then the up-move is likely to extend for sure.

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 overbought zone on the daily chart, so, it can correct at times.

3. It has made lower top & bottom on the line & bar chart.

5. The price action was mixed today.

TRADING CALL: -- 

1. Long trade can be tried on decline near or within the range 51224----51178 but not below it with a stop loss of 51000 for a possible intraday gain, else avoid.

2. Short trade can be tried on the rise near or within the range of 51750—51850 with a stop loss of 51950 or can sell if it moves below 51170 and maintain for some time with a stop loss of 51370. 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.