A TECHNICAL UPDATE ON CNX-BANK NIFTY—22.4.2025

 

CNX-BANK NIFTY

Open—54891.25---High—55461.65---Low—54674.95---Close—55304.50 on 21.4.2025. 

Support:55209/55097/54924/54815/54772/54604/54593/54467.35/54247.70/53888.30/53792.85/53531.30/53357.70/52794.95/52782.75/52760.20/52577.50/52493.95/52354.85/51979.75/51749.45/51749.45/51693.50/51138.90/51133.20/51000.90/50947.70/50860.20/50841.90/50641.75/50438.30/50382.10/50369.40/50194.30/49974.75/49904.40/49836.10/49787.10/49688.80/49654.65/49459/49300/49162.65/49057.40/48972.55/48906.05/48839.10/48734.35/48636.45/48525.60/48292.25/48203.45/48161.75/48074.05/47898.35/47844.15/47702.90/47363.40/46983.75/46077.85/45828.80/45661.75/44633.85/44429/43600.25/43345.45/43230.95/42582.20/42105.40. 

Resistance: 55444/55646/55740/55827/56159/56307/56721/56767.

OVERALL, VIEW: --

It opened with an up-gap and hit a new all-time high as expected and thereafter had both side moves mostly in the upper trajectory during the day and finally ended the day with a huge gain of 1014.30 points. The gap it created today and on 15.4.2025 and on 11.4.2025 is still there and if it makes an effort to fill the gap in next 4---5/ 1—2 &1 respective trading sessions, which is technically possible then it can come down to 54407---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 overall technical setup is extraordinarily strong for the continuation of the up-move and it hit a new all-time high today, so, technically everything looks good for the extension of the up-move  , but the vertical rise of more than 6300 points in the last eight days with unfilled gaps and the deep overbought zone makes it highly vulnerable for a correction any time soon and you are well aware that vertical rise may have vertical fall too at times, furthermore market seems to be in hurry for going up without any fundamental shift or change so, crash like situation may also develop in coming times, therefore be extremely alert and vigilant in the long trade. Please note that moving down 54467.35 will be a strong support point and thereafter 53973.74 & 53630.51 points, break & sustained close below 54467.35 will be a warning sign and break & sustained close below 53973.74 & 53630.51  will push it into short & deep correction mode for its recent rise and can drag it down lower. The trend is hugely bullish but I once again reiterate that in view of the vertical rise and unfilled gaps it could correct sharply any time soon, so, ride the on-going rally with utmost caution and alert.  

 

 

Moving up the resistance points could be at 55444---55646---55740---55827---56159—56307—56721—56767, it could correct at any of these points and then may resume the up-move again or may pause the rally for a while.

TECHNICAL INDICATORS PLACEMENT ON THE DAILY CHART;-

It is making 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 almost all the important technical indicators are positive and in the buy mode now, but it is in the deep overbought zone. Therefore in totality it is looking strong for extending the up-move further, but vertical rise, unfilled gaps  and overbought zone is concern now, so it may correct at times.  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 important indicators are positive and in the buy mode, but negative divergence and overbought zone is a concern, 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 buying on decline market now till it holds 54467.35 and then 53973.74 & 53630.51 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 and in the buy mode.

2. It is way 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.

3. It is making higher top & bottom on the line & bar chart.

4. 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.

5. It is above all its short-term moving averages now on the daily chart and the important average range for day is between 52667--52552--51980---51966---51587----51500(figure will change every day), sustained close above this range may help it to extend the up-move.

6. It is above all its long-term moving averages now and the whole range is between 51347---49849 (the range will change every day). Please note that as long as it sustain above 513347(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.

7. It is well above its short & deep correction threshold points of 53973.74 & 53630.51 (figure may change) for its recent rise.

8. 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. It is in the overbought zone on the daily chart, so, it can correct at times.

TRADING CALL: -- 

1. Long trade for safe trader can be tried on decline near 54467.35 but not below it with a stop loss of 54250, but long trade for aggressive traders can be tried on decline near or within the range of 55100---54900 with a stop loss of 54700 or can try long trade if it moves above 55461 and maintain for some time with a stop loss of 54700 for a possible intraday gain, else avoid.

2. Short trade can be tried on the rise near or within the range of 55900—56000 with a stop loss of 56150 or can sell near 55461.65 if it does not cross it even in intraday in first one and half hour of trade then with a stop loss of 55600.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.