A TECHNICAL UPDATE ON CNX-NIFTY-21.4.2025

 

CNX-NIFTY

Open—23401.85—High—23872.35---Low---23298.55---Close---23851.65 on 17.4.2025.

Support:23816.15/23807.30/23667.20/23664/23644.80/23637.65/23484.15/23537/23426.30/23391.65/23338.70/23263.15/23110.80/23049.95/23047.25/22976.85/22794.70/22786.90/22775.70/22768.40/22676.75/22625.30/22577.40/22546/22525.65/22502/22314.70/22303.80/22281/22165/22124.70/22104.85/21964.60/21875.25/21860.65/21821.05/21777.65/21710.20/21530.20/21448.65/21281.45/21137.20/21021.88/20976.80/20769.50/20291.50/20222.45/19991.85/19839/19333.60.

Resistance: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 it had both side moves for a while and then it steadily moved up during the day and finally ended the day, with a handsome gain of 416.45 points. The gap it created on 15.4.2025 & 11.4.2025 is still there and if it makes an effort to fill the respective days gap in the next 2—3 & 1--2days trading sessions, which is technically possible then it can come down to 22923 & 22468 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 has improved quite a lot, as it has decisively closed above its most critical points of 23637.65 & 23644.80; please note that to keep the hope alive for a good up-move in the year 2025 it has to stay above these points on the closing basis, therefore it looks good for the continuation of the up move, but it is still not out of woods completely as today it tested and crossed intraday by a whisker its recent top of 23869.60 made on 25.3.2025 but closed shade below it, so it can be termed as a double top furthermore in the last seven days it had a vertical rise of more than 2100 points on the intraday basis, so both double top & vertical rise is highly concerning and may trigger correction. However if it manages to hold 23731 on the closing basis then in all probability it is likely to cross its recent top of 23869.60 and can climb up to 24225 or may go beyond it also. But if it fails to cross the top of 23869.60 then it could correct and you are well aware that vertical rise may have vertical fall too at times, so it may correct sharply. But moving down as long as it holds the range of 23644.80 & 23637.65 chances of up-move will always be alive and it may resume the up-move again. But break & sustained close below these points will be a warning sign and it may start to slip down further and finally it may find good support in the range of 23370----23341---23302—23240(some figure may change), but break & sustain close below this range may witness an accelerated fall.

 

Moving up the key resistance points could be at 23893.70----23931----24051----24180(some figures may change daily). It can correct at any of these points then may resume the up- move or rally may fizzle out also, but if it moves 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 23931----24051----24180 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 24235----24545---24753.15---24858----25207---25371, 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 25371 and sustain on the closing basis then it could retest its ultimate top of 26277.35 or may go beyond it also.

TECHNICAL INDICATORS PLACEMENT ON THE DAILY CHART;-

It has higher top & bottom on the line & bar chart both, it is above all its short term moving average on the daily, weekly and almost above all on the monthly chart, it is above all its medium term moving average on the daily & almost above all on the weekly chart, and most importantly it is below three of its long term moving average out of nine on the on the daily chart, which is still a threat to the long term uptrend as of now. But almost all the important indicators are positive now and in the buy mode, but it has negative divergence, double top, vertical rise and in the overbought zone, therefore it may correct at times. But overall it is giving positive signal for continuation of the up-move as of now. So, it is suggested 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 important indicators such as MACD& PS is in the buy mode, RSI with positive divergence, but ADX in the sell mode and in the overbought zone also, so it can correct at times. On the monthly chart it is in overbought/ oversold 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 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 its pullback threshold points, therefore it is buy on decline market now till it holds the range of 23644.80 & 23637.65 on the closing basis, but short trade can also be tried after reasonable rise or near critical resistance points with strict stop loss, for intraday corrective gains.

STRENGTH:-

1. It is well above its critical or make or break range of 22702---22800, which is a positive sign.

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

3. It is above its short, medium & long pullback threshold point for its earlier fall 22245---22479 & 22814 (figure may change), sustained close above it may help it to extend the up-move.

4. It is above all its short-term moving averages now on the daily chart and the important average range for day is between 23170----23168----23137----23093---23076---23002(figure will change every day), sustained close below this range may accelerate the down move.

5. Most of the technical indicators are positive and in the buy mode.

6. It is above its major long term rising trend line which is placed at 23302 for the month of April-2025, it is a very good sign.

7. It is above its recent correction threshold point of 23369.98(figure may change), sustained close above it will exhibit the strength in it.

8. 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 start to drift down.

9. 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. Technical indicator is showing negative divergence and in the overbought zone, so, it may correct at times.

3. The long-term uptrend is still in jeopardy as it is still below three out of nine of its long-term moving averages and the whole range is 24180---23240 (figure will change every day) for the day. Please note that sustained close above 23240 will keep the hope alive of an extended up-move.

TRADING CALL: --

1. Long trade can be tried on decline near or within the range of 23731----23682with a stop loss of 23600 or can buy if it moves above 23894 and maintain for some time then with a stop loss of 23820 for a possible intraday gain, else avoid.

2. Short trade can be tried on the rise near or within the range of 24190---24230 with a stop loss of 24280 or can sell near 23872.35 if it does not cross it even in intraday in first one and half hour of trade then with a stop loss of 23940. 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