A TECHNICAL UPDATE ON CNX-NIFTY-4.4.2025

 

CNX-NIFTY

Open—23150.30—High—23306.50---Low---23145.80---Close---23250.10 on 3.4.2025.

Support: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:23263.15/23338.70/23391.65/23426.30/23484.15/23537/23637.65/23644.80/23664/23667.20/23807.30/23816.15/23873.35/23893.70/23938.85/24073.90/24094.20/24099.70/24141.80/24354.55/24472.80/24498.20/24537.60/24694.35/24753.15/24792.3024854.80/24857.75/25078.30/25234.05/25285.55/25333.65/25445.70/25871.35/26277.35/26328/26995/27095/27212/27293/27381.

OVERALL VIEW ON THE DAILY CHART: --

It opened on a negative note and thereafter had both side moves during the day and finally ended, the day with a loss of 82.25 points. Please note that it is often exhibiting volatility, and this is not a good sign for a steady market.

The technical setup is still weak, as it has lower top & bottom on the line & bar chart; it is still into deep correction mode for its earlier & recent rise, furthermore today it fell below almost all its critical points or range of 23309.44---23305----23288(figures may change), which is its recent pullback threshold point, major long term rising trend line for the month of April—2025 on the monthly chart & its last long term moving average respectively. The only hope  for the continuation of the up-move now is its major long term rising trend line on the daily chart, which is placed at 23145(figure will inch up daily)for the day, it could bounce from here but break and sustained close below it may trigger fresh fall, and then moving down further it’s major and most critical or make or break support range is between22798.35---22794.70---22783.35---22775.70---22774.75---22768.40---22725.45, it could sharply bounce back from this range and may resume the broad up-move again, but break & sustained close below this range may witness an accelerated fall and then the next strong support points or range could be 22281—22165---21821---21777.65---21710 and it is expected to bounce back from this range too, but break and sustained close below this range can drag it down to 21281--- 21137--21021, this is the ultimate bounce back range, but if it moves below 21021 and sustain on the closing basis then it will get into the confirmed bear market territory and if it stays longer below it then it may seek much lower levels, which may please be noted.

Moving up the key resistance points could be at 23288---23305---23309.44----23420.02----23502.64----23526----23637.65---23644.80-----23743-----23871----23893.70----23964----24081----24208(some figures may change daily). If it moves above the range of 23288---23305---23309.44 and sustain on the closing basis then it will provide some strength for continuation of the up-move , if it moves above 23420.02 & 23502.64 and sustain on the closing basis then it will get out of recent correction mode and may extend the up-move. But please note that  it has to move above 23637.65 & 23644.80 and sustain on the closing basis to keep the hope alive of a good up-move in the year 2025, if it move 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 23964----24081----24208 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 24280----24630---24753.15---24858----25260---25415, 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 25415 and sustain on the closing basis then it could retest its ultimate top of 26277.35 or may go beyond it.

 HEAD & SHOULDER PATTERN VISIBLE ON THE DAILY CHART:- The downside target of the pattern was in the range of 21850---21510 and it hit a low of 21964.60, so it has almost achieved the downside target upper band. But till it moves above its neckline of 23893.70 the downside threat is always there and it could trigger fall again.

TECHNICAL INDICATORS PLACEMENT ON THE DAILY CHART;-

It has lower top & bottom on the line and bar chart, it is still above few of its short term moving average on the daily, weekly and monthly chart, it is above few of its medium term moving average on the daily & weekly chart, but most importantly it is below all its long term moving average on the daily chart, which is  a severe threat to the long term uptrend and it is highly concerning as of now. But please note that almost all the important technical indicators are still positive and majorly in the buy mode and with positive divergence, but in the neutral/overbought zone now, so, it may correct at times. So, all together it is showing weak sign as of now so, fear of going down is distinctly l there, therefore please keep a watch on how it behaves in next 1-2 trading sessions. 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 almost all important indicators are positive now; maximum, indicators are in the buy mode and with positive divergence, but MACD still in the sell mode and it is in the overbought zone, so it can further correct from here. 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 SELL ON THE MARKET  AS OF NOW;-

It is into deep correction mode for its earlier & recent rise, it is below its pullback & correction threshold points, therefore it is sell on the rise market now till it close above 23342 and sustain on the closing basis, but long trade can also be tried on decline near critical  support points with strict stop loss, for intraday corrective gains.

STRENGTH: -

1. All the important indicators are positive on the daily chart and majorly in the buy mode.

2. It is above its short, medium & long pullback threshold point (for its earlier falls) of 22400---22648 & 22983 (figure may change), sustained close above these points can help it to extend the up-move.

3 It is above half of its short-term moving averages now on the daily chart and the important average range for day is between 23421----23400----23280----23203---23127---22986(figure will change every day), sustained close above this range may help to extend the up-move.

4. It is above its major long term rising trend line which is at 23145(figure will change every day) for the day.

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, so the correction can extend further.

3. It is below 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 drift down.

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

5. It is below its recent short & deep correction threshold point of 23502.64 & 23420.02(figure may change), sustained close below these points will help it to slide down further.

6. The long-term uptrend is still in jeopardy as it is below  all its long-term moving averages  and the whole range is 24204---23284 (figure will change every day) for the day. Please note that sustained close below 23284 may drag it down further.

7 It is below its recent fall pullback threshold point of 23309.44(figure may change), sustained close below this may weaken the chances of an up-move.

8. It is below its major long term rising trend line which is placed at 23305 for the month of April-2025, it is a very weak sign.

9. The price action was weak today.

TRADING CALL: --

1. Long trade can be tried on decline near 23150 if it holds this point for some time but not below it with a stop loss of 23060 for a possible intraday gain, else avoid. Please note that long trade in a corrective market could be a risky bet but can be tried at critical support point with strict stop loss for intraday gain.

2. Short trade can be tried on the rise near or within the range of 23360---23400 with a stop loss of 23450 or can sell if it moves below 23145 and maintain for some time with a stop loss of 23220. 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