A TECHNICAL UPDATE ON CNX-NIFTY-28.5.2025

 

CNX-NIFTY

Open—24956.65—High—25062.90---Low---24704.10---Close---24826.20 on 27.5.2025.

Support:24792.30/24753.15/24694.35/24589.15/24537.60/24498.20/24494.45/24472.80/24354.55/24198.75/24141.80/24099.70/24094.20/24073.90/23938.85/23893.70/23873.35/23869.65/23847.45/23816.15/23807.30/23667.20/23664/23644.80/23637.65/23484.15/23537/23426.30/23391.65/23338.70/23263.15/23110.80/23049.95/23047.25/22976.85/22794.70/22786.90/22775.70/22768.40/22676.75/22625.30/22577.40/22546/22525.65/22502/22314.70/22303.80/22281/22165/22124.70/22104.85/21964.60/21875.25/21860.65/21821.05/21777.65/21710.20/21530.20/21448.65/21281.45/21137.20/21021.88/20976.80/20769.50/20291.50/20222.45/19991.85/19839/19333.60.

Resistance:24854.80/24857.75/25078.30/25234.05/25285.55/25333.65/25445.70/25871.35/26277.35/26328/26995/27095/27212/27293/27381.

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 174.95 points. It is important to mention here that it has recent unfilled gaps (gap points are 24164, 22923, 22468 & 22254) also on the downside, which is still a huge concern, although stipulated time for filling the gap is over, but it will fill the gap one day for sure. So, be cautious. Please note that it is often exhibiting volatility, which is not a good sign for a steady market.

The overall technical setup looks good for the continuation of the up-move, but it’s see-saw movement every other day is a matter of deep concern and possibly can drag it down sharply in coming times. Please note that today it slipped into short correction mode as it closed below its few threshold points. But the good thing is that it is still holding its make or break bottom of 24753.15 and as long as it holds this point chances of up-move will be alive, but break & sustained close below it may derail the up-momentum and it may slide down further.  Moving down it will find support at 24816.91----24740---24703----24626----24589.15----24578----24526----24457.65---24334.25---24320.32----24311.90—24214---24184---24172(some figure may change), it can bounce back from any of these points, but break & sustained close below the range of 24740---24703----24626----24589.15----24578 may trigger fresh fall, break & sustained close below 24320.32 will push it into deep correction mode for its recent rise and finally break & sustained close below the range of 24184---24172 may drag it down further. Moving down further it will find its most important & critical support in the range of  23893.70----23869.65—23807.30 , it is a very strong bounce back support range and if it holds this range then the chances of resuming the up-move will be good, but break & sustained close below this range may trigger fresh fall and may end the hope of a continued up-move 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, else it may accelerate the fall. It is in the long term uptrend, but in short term correction mode as of now.

Moving up the key resistance points could be at 24837.65---24933.64---25062.95---25116.25---25207---25287----25371---25465---25996----26277.35. It can correct at any of these points and then may resume the up- move again or rally may fizzle out for a while also, but if it moves above the range of 24816.91----24837.65---24933.64, it will get out of correction mode, if it moves above 25062.95---25116.25 and sustain on the closing basis the it will gain strength to move up further and finally if it moves above the range of 25207---25287----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  crossed its previous top on the line chart; it is almost above all its short term moving averages (except for few) on the daily chart and above all on the weekly & monthly chart, it is above all its  medium & long term moving averages on the daily, weekly & monthly chart which is a positive sign for moving up further. But certain important technical indicators are negative and in the sell mode such as MACD/EV, negative divergence in RSI and in the overbought zone, but few indicators are positive also and in buy mode such as PS & ADX. So, in totality it is giving mixed signal now, so it can swing either way. Furthermore earlier vertical rise, unfilled gaps, negative divergence and overbought zone is still a concern, so it may correct at times, therefore further fall cannot be ruled out in coming days, so, it is suggested to be extremely alert and cautious in your long trade commitments. 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 important indicators such as MACD/ ADX/ PS &EV is in the buy mode,  but it is in the deep overbought zone, so it can correct at times, but looks good for the up-move. On the monthly chart it is in overbought 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  NOW;-

It is buying on decline market now as long as it holds 24753.15 on the closing basis.. But short trade can also be tried on the rise near critical resistance points or range with strict stop loss, for intraday corrective  gains.

STRENGTH:-

1. Few technical indicators are positive and in the buy mode such as ADX, ST  & PS.

2. It is above its major long term rising trend line which is placed at 23502 for the month of May-2025, it is a very good sign.

3. 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.

4. It is above its most critical First & second make or break bottom of 24753.15 & 23893.70 sustained close above it will keep the hope alive for resuming the up-move.

5. It is above some of its correction threshold points of 24816.90 & 24320.32(figure may change), if it sustains above it, it is a positive sign.

6 It is way above its top long-term moving averages which is placed at 24184 (figure will change every day) for the day, close below this point would be a weak sign.

7. It is almost above  all(except for few) its short-term moving averages now on the daily chart and the important average range for day is between 24849----24842----24782----24740---24626---24578(figure will change every day), sustained close above this range may help it to extend the up--move.

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. Few technical indicators are negative on the daily chart such as MACD/EV sell mode, negative divergence in RSI and in the overbought zone so, it may correct at times in coming days.

3. It slipped into very short correction mode as it closed below few of its correction threshold point of 24933.64--24837.65(figure may change) , sustained close below these points is a weak sign and can drag it down.

4. The price action was negative today.

TRADING CALL: --

1. Long trade can be tried on decline near 24753.15 but not below it and if it maintains for some time, then with a stop loss of 24680 for a possible intraday gain, else avoid.

2. Short trade can be tried on the rise near or within the range of 25062---25117 with a stop loss of 25170 or can sell if it moves below 24700 if it maintain for some time with a stop loss of 24780It 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