A TECHNICAL UPDATE ON CNX-BANK NIFTY—22.8.2025

 

CNX-BANK NIFTY

Open—55972.05---High—55993.65--Low—55708.20---Close—55755.45 on 21.8.2025.

 

Support:55695/55547.35/55475.45/55149.30/54905.60/54576.60/54467.35/54442.30/54176.45/53888.30/53483.05/53357.70/52794.95/52782.75/52760.20/52577.50/52493.95/52354.85/51979.75/51749.45/51749.45/51693.50/51138.90/51133.20/51000.90/50947.70/50860.20/50841.90/50641.75/50438.30/50382.10/50369.40/50194.30/49974.75/49904.40/49836.10/49787.10/49688.80/49654.65/49459/49300/49162.65/49057.40/48972.55/48906.05/48839.10/48734.35/48636.45/48525.60/48292.25/48203.45/48161.75/48074.05/47898.35/47844.15/47702.90/47363.40/46983.75/46077.85/45828.80/45661.75/44633.85/44429/43600.25/43345.45/43230.95/42582.20/42105.40. 

Resistance:55957.75/56098.70/56161.40/56204.85/56594.25/56623.60/57049.50/57276.55/57312.75/57363.70/57375.80/57566/57628.40/57683/57755/58000/58224/58316/58479/58950.

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 56.95 points. The gap it created on 18.8.2025 is still there and if it makes an effort to fill the gap in the next 1-2 trading sessions, which is technically possible then it could come down to 55472, but if it fails to fill the gap in the stipulated time then chances of filling the gap will recede for the time being, but please note that it will fill the gap one day for sure. It is also important to mention here that it still has earlier unfilled gaps (gap points are 54054.80, 51361, 51244 & 50496) , 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 it is not a good sign for a steady market.

The technical setup is still weak, it is into short, medium and deep correction mode for its recent rise, it is still below few of its short term moving average on the daily & weekly chart, also below few of the medium term moving averages on the daily chart, which is a weak indication, therefore fall in the coming days cannot be ruled out.  But the positive thing as of now is that it is making  higher top & bottom on the line & bar chart, holding its key point of 55547.35 and most importantly it is above  its major long term rising trend-line  which is drawn from the bottom of 16116.25 made on 24.3.2020 and is placed at 55350(this figure will change & inch up every day), which is a positive sign  for the continuation of the up-move, but break & sustained close below 55547.35 will be an alert sign for going down and  break & sustained close below 55350 may trigger fresh fall and then moving down its critical support points or range are  at 55149---55043---54905, which could be a good bounce back range, but break & sustained close below this range may witness an accelerated fall..  

Moving down further its next critical support points or range will be at 54467.35----54360(some figures may change daily), which is yet again an 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 54467.35 will dampen the chances of up-move in the year 2025 and it may head down with an accelerated pace and finally if it moves below 54360 and sustain on the closing basis then the long term uptrend will be threatened and it may slide down further and then it may find its next strong support at 53483.05 and please note that break & sustained close below it may witness an accelerated fall.

Moving up the broad resistance points could be at 55897.15-----55961.95------56038.48---56098.70-------56650.10-----56908.08----57043.33---57049.50----57084----57189.04---57213-----57376----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  55897.15-----55961.95 and sustain then the up-move is most likely to extend further , if it moves above the range of  56038.48---56098.70 and sustain then it will get good foothold and raise good hope for extending the up-move, if it moves above 56650.10 and sustain then it will get out of deep corrective mode for its recent rise, if it moves above the range of  56908.08----57043.33---57049.50----57084 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 still in a long term uptrend, but into deep correction mode for its recent rise.

IMPORTANT NOTE: - THE KEY POINTS FOR THE MONTH OF AUGUST-2025 ARE 55547.35---55897.15 & 55961.95 IT HAS TO MOVE & REMAIN ABOVE THESE POINTS FOR AN UP-MOVE TO CONTINUE, ELSE IT WILL DRIFT DOWN. PLEASE NOTE THAT THE ON-GOING UP-MOVE SEEMS TO BE JUST A RELIEF RALLY ONLY AND MAY NOT LAST LONG AND  CAN FIZZLE OUT ABRUPTLY TILL IT CLOSES ABOVE 55962 AND SUSTAIN.  

TECHNICAL INDICATORS PLACEMENT ON THE DAILY CHART;-

POSITIVE POINTS:-

1. It is still above its long term moving average and the top average is placed at 54360(figure will change every day).

2. Almost all the important indicators are positive now, MACD, EV, ADX, PS is in the buy mode and RSI has given a positive divergence, so it may extend the on-going up-move.

3. Volatility method showing a buy signal.

NEGATIVE POINTS:-

1. below few short terms moving average on the daily & weekly chart.

2. below few medium terms moving average on the daily chart.

3. ST is in the sell mode and it is in the neutral/overbought zone, so it may correct at times.

In view of the above there is a possibility that it can extend the up-move with-in-between correcting moves till it holds the important key points on the closing basis as mentioned above. 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. 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: -

WEEKLY CHART: - Almost all the indicators are negative and MACD, EV, PS, ST & RSI   are in the sell mode, therefore further fall looks quite likely in coming weeks .But the silver lining is that  RSI is with positive divergence and it is in the oversold zone , so it may have short up-moves at times.

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 are painting a mixed picture now with tilt towards down-side as of now.

IT IS BUY ON DECLINE  MARKET  NOW;-

It is still into correction mode but above its key support points of 55547.35 &55350(this figure will change daily)   therefore as long as it holds these points on the closing basis it is buy on decline market now. But short trade can also be tried after reasonable rise and near critical resistance points or range with strict stop losses, for intraday corrective gains.

STRENGTH: -

1. It is 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 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.

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

3. It is above all (except for one) of its short-term moving averages now on the daily chart and the important average range for day is between 55778---55734--55622---55567---55565---55465(figure will change every day), sustained close above this range may help it to extend the up-move.

5. It is above its major long term rising trend line which is placed at 54812 & 50370 for the month of August-2025, these are the very strong support point.

6. It is out of medium & deep corrective mode for its earlier rise as it closed above its threshold points of 55629.14 & 55285.91(figure may change).

7. It is above its recent pullback threshold point of 55549(figure may change), if it sustain above it chances of up move will be alive.

8. 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. It is into short, medium & deep correction mode for its recent rise as it is below its threshold point of 57189.04---57043.33---56908.08-----56650.10   (figure may change), sustained close below these points can drag it down much lower.

3. It is below its correction threshold point of 55861(figure may change) for its very recent rise.

TRADING CALL: -- 

1. Long trade can be tried on decline near or within the range of 55700---55550 if it holds this for some time with a stop loss of 55330 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 55950—56040 with a stop loss of 56240 or can sell if it moves below 55547 and maintain for some time then with a stop loss of 55720.  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.