A TECHNICAL UPDATE ON CNX-BANK NIFTY—7.7.2025

 

CNX-BANK NIFTY

Open—56825.25---High—57075.10--Low—56623.60---Close—57031.39 on 4.7.2025.

 

Support:56670/56601/56324/56161.40/56098.70/55957.75/55695/55475.45//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:57049.50/57566/57614.50/57683/57755/58000/58224/58316/58479/58950.

OVERALL, VIEW: --

It opened on a positive note and thereafter had both side moves during the day and finally, ended the day with a gain of 239.95 points. 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 a bit, therefore the continuation of the up-move may be in jeopardy if it does not stage a sharp bounce back in a shortest possible time and move above the range of 57312.75---57375.80 and sustain on the closing basis, if it fails to do this in next 2-3 trading sessions then it may slide down again, else it may resume the up-move again. Furthermore it is still into short correction mode for its recent rise, which is weak sign and can drag it down. However moving down  it will find strong support in the range of  56908.08---56714----56708----56650.10----56548-----56512----56098.70(some figures may change daily) it is a good bounce back range, but break & sustained close below the range of 56908.08---56704----56650.10(it bounced back from this range today) will push it into medium & deep correction mode for its recent rise, break & sustained close below the range of 56548-----56512 and may trigger fresh fall 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 57043.33----57049.50----57313----57375-----57566---57683---57725----57755---57850----57930----58000(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 57043.33----57049.50 and sustain on the closing basis then it will get out of corrective mode but it may gain strength and resume the up-move again once it moves above the range of 57313----57375 and sustain on the closing basis else it may drift down again. It is in a strong long term uptrend, but still in a short correction mode as of now.

TECHNICAL INDICATORS PLACEMENT ON THE DAILY CHART;-

It has broken its recent bottom on the line chart, it is above all its short (almost all), medium & long term moving averages on the daily, weekly & monthly chart which is a positive sign for the continuation of the up-move. Furthermore almost all the important technical indicators are positive now on the daily chart and majorly in the buy mode such as MACD, EV, PS & ADX but RSI with negative divergence, VM &ST is in the sell mode and it is in the overbought zone. So there is a high probability of a correction anytime soon and it is already into correction mode now, but in totality as of now it is giving mixed signal therefore at times it swing both ways but with slight downward bias. 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 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,ST, ADX & EV are in the buy mode,  RSI with negative divergence  and it is in the overbought zone ,which is a concern, so it can correct at times, but overall looks good for the up-move. 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 now therefore for aggressive traders it is sell on the rise market till it closes above 57049.50 and sustain and for safe traders till it closes above 57375.80 and sustain on the closing basis. But long trade can also be tried on decline near critical support points or range with strict stop loss, 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 53159(figure will change every day). Close below this point will be a warning signal.

3 It is above almost all its correction threshold point of 56908.08----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.

6. It is above almost all(except for one) of its short-term moving averages now on the daily chart and the important average range for day is between 57063--56938--56879---56708---56548---56512(figure will change every day), sustained close above this range can 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. RSI is with negative divergence and it is in the overbought zone and VM is in the sell mode, so, it can correct at times.

3. It is still into short correction mode as it is below its threshold point of 57043.33 (figure may change), sustained close below it can drag it down.

4. It has broken its recent bottom on the line chart today.

5. The price action was negative today.

TRADING CALL: -- 

1. Safe traders should avoid long trade till it closes above 57375.80 and sustain. But aggressive traders can try long trade on decline near or within the range of 56918---56800 but not below it with a stop loss of 56600 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 57300—57375 with a stop loss of 57500 or can sell if it moves below 56791 or can surely sell if it moves below 56600 and maintain for some time then with a stop loss of 57060 & 56800 respectively.  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.