A TECHNICAL UPDATE ON CNX-NIFTY-28.4.2025

 

CNX-NIFTY

Open—24289—High—24365.45---Low---23847.85---Close---24039.35 on 25.4.2025.

Support:23938.85/23893.70/23873.35/ 23869.65/23816.15/23807.30/23667.20/23664/23644.80/23637.65/23484.15/23537/23426.30/23391.65/23338.70/23263.15/23110.80/23049.95/23047.25/22976.85/22794.70/22786.90/22775.70/22768.40/22676.75/22625.30/22577.40/22546/22525.65/22502/22314.70/22303.80/22281/22165/22124.70/22104.85/21964.60/21875.25/21860.65/21821.05/21777.65/21710.20/21530.20/21448.65/21281.45/21137.20/21021.88/20976.80/20769.50/20291.50/20222.45/19991.85/19839/19333.60.

Resistance: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 207.35 points. Today it has filled the gap it created on 21.4.2025, the gap point was 23872, but please note that it has other recent unfilled gaps (gap points are 22923,22468 & 2254) also on the downside, which is still a huge concern, so, be cautious. Please note that it is often exhibiting volatility, which is not a good sign for a steady market.

The technical setup improved in the last few days. But after the vertical rise of more than 2600(intraday) points in the last few days, it took a breather yesterday and today it had a moderate fall, but in view of the sharp rise it seems that price-wise correction is not yet over,  because the vertical rise, previous unfilled gaps, negative divergence and the deep overbought zone is still a concern and can pull it down further in coming times and it may have a vertical fall and today’s move was a trailer of that, therefore be extremely alert and vigilant in the long trade. Furthermore today it has decisively broken its important support range of 24235---24226----24180(some figure may change) which is an alert sign, but moving down if it manages to hold its most critical and bounce back range of 23893.70----23869.65(it did break this range intraday today but bounced back) on the closing basis then the hope of a continued up-move will be alive, but break & sustained close below this range will be a deep warning sign and may drag it down further and then the next support point could be at 23742.01(figure may change) , which is a correction threshold point, break & sustained close below it will push it into correction mode and then comes its most critical  support point of 23644.80 & 23637.65, 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. It is a strong bounce back range. But break & sustained close below these points may dampen the hope of a continued up-move and finally it may find last critical support in the range 23526---23406---23278(figure will change daily), but break & sustained close below this range may end the up-move for a while and it may witness an accelerated fall. 

Moving up the key resistance points could be at 24053----24180---24235----24403----24545---24578----24753.15---24934----24858----25207---25287----25371---25465---25996(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 24180 & 24235 and sustain on the closing basis then it may somewhat ensure that the up-move is likely to extend for sure and it can climb to24753.15 & 24858 and if it sustains above 24753.15  on the closing basis then it may get back into the strong up-momentum track and finally 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 averages on the monthly chart, it is above all its medium term averages on the daily chart, almost above all on the weekly and above all on the monthly chart and most importantly it fell below few of its long term moving averages on the daily chart today, which is concerning. But most of the important indicators are positive now and in the buy mode, but it has negative divergence, vertical rise, and unfilled gaps and overbought zone is a deep concern, therefore it may correct at times and correction is on. The overall setup is giving mixed signal now and it can have wild movement on the either side, but today’s move indicates that the undertone is weak as of now.  Therefore it is suggested to 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/ ADX& PS is in the buy mode, but it is in the overbought zone, so it can correct at times and correction is on. 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  23894---23870 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 23967----23806----23675----23561---23510---23418(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 23742.01(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. It is above its most critical or second make or break bottom of 23893.70, sustained close above it will enhance the chances of extending the up-move.

10. The price action was mixed 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 and today it took a breather.

3. It is below its top long-term moving averages which is placed at 24180 (figure will change every day) for the day, close below this point is a warning signal.

4. It is still way below its first make or break bottom of 24753.15, if it moves above it and sustain on the closing basis then it may get back on the strong up-momentum track.

TRADING CALL: --

1. Long trade for safe trader can be tried on decline near or within the range of 23894----23872 but not below it with a stop loss of 23780 for a possible intraday gain, else avoid.

 2. Short trade can be tried on the rise near or within the range of 24230---24250 with a stop loss of 24320 or can sell if it moves below 23847 and maintain for some time with a stop loss of 23920. 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