A TECHNICAL UPDATE ON CNX-BANK NIFTY—28.8.2025

 

CNX-BANK NIFTY

Open—54999.05---High—55068.90--Low—54396.10---Close—54450.45 on 26.8.2025.

 

Support: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:54467.35/54576.60/54905.60/55149.30/55475.45/55547.35/55695/55957.75/56098.70/56161.40/56204.85/56594.25/56623.60/57049.50/57276.55/57312.75/57363.70/57375.80/57566/57628.40/57683/57755/58000/58224/58316/58479/58950.

OVERALL, VIEW: --

It opened on a negative note and thereafter had both side moves during the day and finally, ended the day flat with a huge loss of 688.85 points. 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 extremely weak, it is into short, medium and deep correction mode for its recent rise and into medium & deep correction mode for its earlier rise also, it is  below all its short term moving average on the daily & weekly chart, also below almost all of the medium term moving averages on the daily chart, it is making lower top & bottom again on the line & bar chart, decisively below its major long term rising trend-line which is drawn from the bottom of 16116.25 made on 24.3.2020 and most importantly today it closed shade below its  most critical point of 54467.35 and almost all important technical indicators have turned negative on the daily chart, which is a terribly weak indication, and  please note that if it does not bounce back above 54467.35  and sustain on the closing basis in a shortest possible time then further fall looks inevitable in the coming days and it will dampen the chances of an up-move in the year-2025.  

Moving down further its next critical support points or range will be at 54426---54312.12(some figures may change daily, it tested this range today), which is 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 54426 and sustain on the closing basis then the long term uptrend will be threatened and it may slide down further and finally if it moves below 54312.12 and sustain on the closing basis then it may find its next strong support at 53483.05 and if it does not hold this point on the closing basis then it may witness an accelerated fall and then the final support range could be 52888---52581 (range will change daily), but break & sustained close below this range will trigger fresh fall and long term uptrend would also be in potential danger and down-slide would continue may be with-in-between short relief rallies.

Moving up the broad resistance points could be at 54467.35---54812---55159---55285.91---55548----55629.14----55897.15-----55961.95------56038.48---56098.70-------56650.10-----56908.08----56982------57043.33---57049.50----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 54467.35 and sustain on the closing basis then the hope of a continued up in the year-2025 will be alive, else it will drift down , if it moves above  54812 & 55159 and sustain on the closing basis then the chances of extending the up-move will enhance, it moves above moves above the range of 55548 then it may gain reasonable strength for extending the up move, if it moves above 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----56982 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 into long term uptrend, but into deep correction mode for its recent & earlier rise.

IMPORTANT NOTE: - TO KEEP THE HOPE ALIVE FOR A CONTINUED UP-MOVE IN THE YEAR-2025 IT HAS TO MOVE ABOVE 54467.35 AND SUSTAIN ON THE CLOSING BASIS,ELSE IT MAY KEEP DRIFTING DOWN.

TECHNICAL INDICATORS PLACEMENT ON THE DAILY CHART;-

POSITIVE POINTS:-

1. It is still above its all long term moving average and the top average is placed at 54426(figure will change every day).

2. In technical indicator RSI still has a positive divergence on the daily chart and it is in the oversold zone, so it may have relief rallies at times.

3. Volatility method still in buy mode.

NEGATIVE POINTS:-

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

2. below almost all medium terms moving average on the daily chart.

3. Almost all important technical indicators have turned negative and MACD, EV, ST, PS & ADX are in the sell mode, so it may correct at times and down move is a strong possibility.

In view of the above there is a good possibility that the down move can extend with-in-between relief rally till it moves above 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 MACD, EV, PS & ST are in the sell mode and RSI is showing negative divergence, therefore further fall looks quite likely in coming weeks .But the only silver lining is that  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 SELL ON THE RISE  MARKET  NOW;-

It is into deep correction mode for its earlier & recent rise and below its recent key points, therefore it is a sell on the rise market now till it closes above 55159(figure may change) and sustain.  But long trade can also be tried on  the reasonable or sharp decline near critical support points or range with strict stop losses, for intraday gains.

STRENGTH: -

1. It is above its most crucial 2^nd bottom of 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 its 2nd major long term rising trend line which is placed at 50370 for the month of August-2025, it is a very strong support point.

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 and also below its medium & deep correction threshold points 57189.04---57043.33---56908.08-----56650.10--- 55629.14 & 55285.91 (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.

4. It is below all its short-term moving averages now on the daily chart and the important average range for day is between 55548---55487--55358---55337---55281---55276(figure will change every day), sustained close below this range may drag it down further.

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

6. It is below its recent pullback threshold point of 54812 & 55159(figure may change), if it sustain below it chances of up move will be slim.

7. It has broken its major first major long term rising trend line which is placed at 54812 for the month of August-2025, sustained close below it can drag it down further.

8. It is decisively below its most crucial 1^st bottom of 55149.30, if it sustains below it on the closing basis then it will drift down further.

9 It is below 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

10. The price action was negative today.

TRADING CALL: -- 

1. Long trade can be tried within the range of 54467.35---54312 if it holds this range for some time, with a stop loss of 54150 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 54850—54950 with a stop loss of 55080 or can sell if it moves below 54300 and maintain for some time then with a stop loss of 54480.  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.