A TECHNICAL UPDATE ON CNX-NIFTY-4.6.2025

 

CNX-NIFTY

Open—24786.30—High—24845.10---Low---24502.15---Close---24542.50 on 3.6.2025.

Support: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:24589.15/24694.35/24753.15/24792.30/24854.80/24857.75/25078.30/25234.05/25285.55/25333.65/25445.70/25871.35/26277.35/26328/26995/27095/27212/27293/27381.

OVERALL VIEW ON THE DAILY CHART: --

It opened on a positive note and thereafter had both side moves during the day and finally ended, the day with a loss of 174.10 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 has weakened a bit, it is having see-saw movement every other day is a matter of deep concern and possibly can drag it down sharply in coming times. It is already into short correction mode for its recent rise, it is making lower top & bottom on the line chart and below all short term moving average now, so all together these are weak developments, therefore further fall looks inevitable in coming times provided it remains below 24753.15 levels on the closing basis. Moving down it will find support at 24494----24462----24320.32----24214---24195---24172(some figure may change), it can bounce back from any of these points, but break & sustained close below 24494 & 24462 will be a trigger point for going down further, 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 24214---24195---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 24753.15---24816.91----24837.65---24933.64---25079.20---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 24753.15 and sustain on the closing basis then it will get back into strong up-momentum track, if it moves above the range of 24816.91---- 24837.65---24933.64, it will get out of corrective  mode, if it moves above 25079.20---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 is making lower top & bottom on the line chart; it is below all  its short term moving averages on the daily chart but 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 almost all the important technical indicators are negative now and in the sell mode such as MACD/EV/ST/PS and negative divergence in RSI, but slight comforting thing is that ADX in buy mode and it is in the oversold zone, so it may have a short relief rally. But in totality it is giving mixed signal now but with slight negative bias, so it can swing either way, which it has been doing quite often. 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 are 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 & PS 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   months.

IT IS SELL ON RISE MARKET  NOW;-

It is into corrective mode now and below its key point , therefore it is sell on the rise or sell on the price breakdown market now till it moves above 24753.15 and sustain on the closing basis. But long trade can also be tried near critical support points or range with strict stop loss, for intraday pullback gains.

STRENGTH:-

1. It is above its major long term rising trend line which is placed at 23782 for the month of June-2025, it is a very good sign.

2. 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.

3. It is above its most critical second make or break bottom of 23893.70 sustained close above it will help to extend the up-move.

4. It is above its deep correction threshold points of 24320.32(figure may change), if it sustains above it, it is a positive sign.

5 It is way above its top long-term moving averages which is placed at 24195 (figure will change every day) for the day, close below this point would be a weak sign.

6. It is in oversold zone and ADX in the buy mode , so it may a relief rally.

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. All the important technical indicators are negative on the daily chart such as MACD/EV/ST/PS/in the sell mode and negative divergence in RSI , it may deeply correct at times in coming days and it is already into correction mode.

3. It slipped into very short correction mode as it closed below few of its correction threshold point of 24933.64--24837.65---24816.91 (figure may change), sustained close below these points is a weak sign and can drag it down.

4. It is below its most critical first make or break bottom of 24753.15 sustained close below it can drag it down.

5. It is below all of its short-term moving averages now on the daily chart and the important average range for day is between 24770---24765----24745----24728---24714---24630(figure will change every day), sustained close below this range may accelerate the down move.

6. The price action was mixed today.

TRADING CALL: --

1. Long trade can be tried on decline if it holds the range of 24494---24442 for some time, then with a stop loss of 24360 for a possible intraday gain, else avoid. Please note that long trade in a corrective mode could be a risky affair.

2. Short trade can be tried on the rise near or within the range of 24720---24750 with a stop loss of 24820 or can sell if it moves below 24440 and maintain for some time with a stop loss of 24550. 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