A TECHNICAL UPDATE ON CNX-BANK NIFTY—23.7.2025

 

CNX-BANK NIFTY

Open—57253.35---High—57286.15--Low—56692---Close—56756 on 22.7.2025.

 

Support:56623.60/56594.25/56204.85/56161.40/56098.70/55957.75/55695/55475.45//55149.30/54576.60/54467.35/54442.30/54176.45/53888.30/53483.05/53357.70/52794.95/52782.75/52760.20/52577.50/52493.95/52354.85/51979.75/51749.45/51749.45/51693.50/51138.90/51133.20/51000.90/50947.70/50860.20/50841.90/50641.75/50438.30/50382.10/50369.40/50194.30/49974.75/49904.40/49836.10/49787.10/49688.80/49654.65/49459/49300/49162.65/49057.40/48972.55/48906.05/48839.10/48734.35/48636.45/48525.60/48292.25/48203.45/48161.75/48074.05/47898.35/47844.15/47702.90/47363.40/46983.75/46077.85/45828.80/45661.75/44633.85/44429/43600.25/43345.45/43230.95/42582.20/42105.40. 

Resistance:57049.50/57276.55/57312.75/57363.70/57375.80/57566/57628.40/57683/57755/58000/58224/58316/58479/58950.

OVERALL, VIEW: --

It opened with an up-gap and thereafter had both side moves during the day and in the process filled the day’s gap and finally, ended the day with a loss of 196.75 points. But it is important to mention here that it still has earlier unfilled gaps (gap points are 56233.55,54054.80, 51361, 51244 & 50496) also on the downside, which is still a huge concern, although stipulated time for filling the gap is over long ago, but it will fill the gap one day for sure. So, be cautious. Please note that it is often exhibiting volatility, and is not a good sign for a steady market.

The technical setup is still weak, as it is into short & medium term correction mode for its recent rise, making lower top & bottom on the line & bar chart, today it fell below all its short term moving average on the daily chart and it is below its rising trend-line also, furthermore almost all the important technical indicators are negative, therefore all together it is giving very weak indication for going down. Please note that for 23.7.2025 its rising trend-line is placed at 57013 (figure will change and will inch-up every day)  and if it moves above it and sustain on the closing basis, then the up-move can extend further, please note that whatever it may witness will be a relief rally till it closes above 57344.  Please note that even if it remains below the trend-line  moving down it fill find strong & critical support in the range of 56650.10---56540 & 56098.70 , chances of resuming the up-move will be alive as it is a very strong bounce back range , but break & sustained close below the range of 56650.10----56540 will again push it into medium & deep correction mode for its recent rise and may end the possibility for a while of sustained up-move and break & sustained close below 56098.70 may witness an accelerated fall and then moving down further its most critical support points or range could be, 55629.14----55285.91-----54467.35(some figures may change), which is yet again a very strong and important bounce back points or range and if it holds this range then the chances of resuming the up move will still be faintly alive. But break & sustained close below the range of 55629.14----55285.91 will push it into medium and deep correction mode for its earlier rise and break & sustained close below 54467.35 will dampen the chances of up-move in the year 2025.

Moving up the broad resistance points could be at 56770---56908.08---56917---56988---57043.33----57049.50----57085----57189.04—57292----57344-----57566---57629(some figures may change)(for complete resistance points see the table on the upside) it may correct at any of these points and then may resume the up-move again or may pause the rally for a while. Please note that if it moves above the range of 56770----56908.08--- 56974  and sustain on the closing basis then it will get out of medium correction mode and may gain some strength to move up further, if it moves above the range of 57043.33----57189.04 then it will completely get out of corrective mode and may make an reasonable effort to extend the up-move, if it moves above  57344 and sustain on the closing basis then it may get back into strong up- momentum track and may retest its all-time high of 57628.40 or may go beyond it also. It is in a strong long term uptrend, but into short & medium term correction mode now.

TECHNICAL INDICATORS PLACEMENT ON THE DAILY CHART;-

It still has lower top & bottom on the line & bar chart; today it fell below all its short term moving average 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 the continuation of the up-move. But almost all the important technical indicators are negative now and majority of them are in the sell mode now such as MACD, EV, PS, VM and RSI with huge negative divergence. The positive factor are that ADX & ST is in the buy mode and it is in the oversold zone on the daily chart, so it can have relief rally at times but that may not last long, therefore there is a high probability of a correction anytime soon and it is already into short & medium correction mode, so in totality as of now it is giving mixed signal therefore at times it may swing both ways but with slight tilt towards downside as of now . Furthermore please note that earlier vertical rise, unfilled gaps, negative divergence and in the overbought zone on weekly & monthly chart is still a concern, 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 at this juncture. 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 major important indicators are positive such as MACD, PS, ADX & EV are in the buy mode, but RSI is with huge negative divergence and it is in the overbought zone, which is a concern, so it can correct at times. On the monthly chart few indicators are in buy mode such as MACD, ST, PS & ADX, but it is in the overbought zone and with huge negative divergence in RSI. Therefore, all together indicators on the weekly & monthly  chart more or less seems positive for the up-move , but on the monthly chart huge negative divergence and it is in the overbought zone, which is a deep concern, therefore chances are that it can sharply go down in coming months.

IT IS SELL ON THE RISE  MARKET  NOW;-

It is into correction mode therefore for aggressive traders it is sell on the rise market now till it closes above 57050 and sustains and for safe traders till it closes above 57376 and sustain on the closing basis. But long trade can also be tried on the decline near critical support points or range with strict stop losses, for intraday gains.

STRENGTH: -

1. It is way above its most crucial bottom of 55149.30& 53483.05, if it sustains above it on the closing basis then the chances of the up-move will be alive.

2. It is above all its long-term moving averages and the top average is placed at 53702(figure will change every day). Close below this point will be a warning signal.

3 It is above few of its correction threshold point of 56650.10----55629.14 & 55285.91 (figure may change) sustained close above these points could be a strong hope for moving up further.

4 It is way above its most critical point of 54467.35, please note that it is essential to stay above this point to keep the up-momentum going in the year-2025, else it may drift down.

5. It is above its long term rising trend-line which is placed at 54556 &50016 for the month of July—2025.

7. 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. All the important indicators are negative now and majority are in sell mode such as MACD, EV, PS,  VM and RSI is with negative divergence and it is in the overbought zone, so, it can correct at times, it is already into correction mode now.

3. It is into short & medium correction mode for its recent rise as it is below its all threshold points of 57189.04----57043.33---56908.08 (figure may change), sustained close below these points may drag it down further.

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

5. It is below all its short-term moving averages now on the daily chart and the important average range for day is between 56988--56917--56869---56834---56813---56770(figure will change every day), sustained close below this range may accelerate the down move.

TRADING CALL: -- 

1. Safe traders should avoid long trade till it closes above 57050 and sustain. But aggressive traders can try long trade on decline near or within the range of 56700---56650 for some time but not below it with a stop loss of 56500 for a possible intraday gain, else avoid. Please note that long trade in a corrective market could be a risky affair, but can be tried near critical support points for intraday gains.

2. Short trade can be tried on the rise near or within the range of 57100—57200 with a stop loss of 57360 or can sell if it maintains below 57013 for some time then with a stop loss of 57150.  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

Email—suranank@gmail.com

Mobile—8240951127/9831313654.