A TECHNICAL UPDATE ON CNX-NIFTY-5.8.2025

 

CNX-NIFTY

Open—24596.15—High—24736.25---Low---24554---Close---24722.75 on 4.8.2025

Support:24694.35/24598.60/24589.15/24537.60/24502.15/24498.20/24494.45/24473/24462.40/24354.55/24226.70/24198.75/24141.80/24099.70/24094.20/24073.90/23938.85/23935.75/23893.70/23873.35/23869.65/23847.45/23816.15/23807.30/23667.20/23664/23644.80/23637.65/23484.15/23537/23426.30/23391.65/23338.70/23263.15/23110.80/23049.95/23047.25/22976.85/22794.70/22786.90/22775.70/22768.40/22676.75/22625.30/22577.40/22546/22525.65/22502/22314.70/22303.80/22281/22165/22124.70/22104.85/21964.60/21875.25/21860.65/21821.05/21777.65/21710.20/21530.20/21448.65/21281.45/21137.20/21021.88/20976.80/20769.50/20291.50/20222.45/19991.85/19839/19333.60.

Resistance:24733.40/24753.15/24792.30/24854.80/24857.75/24882.30/24892.60/24918.65/25001.95/25079.20/25116.25/25136.20/25222.40/25234.05/25246.25/24255.30/25285.55/25333.65/25371/25517.05/25548.70/25551.35/25669.35/25871.35/26277.35/26328/26995/27095/27212/27293/27381.

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 gain of 157.40 points. It is important to mention here that it that it still has earlier unfilled gaps (gap points on downside are 24164, 22923, 22468 & 22254 on the upside 25019--25340.45) also on the downside/upside, 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, this is not a good sign for a steady market.

The technical setup is very weak, it is into short, medium and deep correction mode for its recent rise, it is below its short term rising trend-line, it is making lower top & bottom on the line & bar chart, below all its short term moving average on the daily & mostly below weekly chart also & below few medium term moving averages on the daily chart and most importantly it is below its critical and key points of 24768.35---24753.15----24742.88 , furthermore all the important technical indicators are negative, therefore all together it is giving a very weak indication and if it fails to stage a recovery and moves above these points and sustain on the closing basis in a shortest possible time then further fall looks inevitable in coming times and it may witness an accelerated down move.

Moving down further it will find support at 24598.60----24535---24494----24473-----24462----24365----24257(some figure may change daily), it can bounce back from any of these points, but break & sustained close below the range of 24598.60----24535 will trigger fresh fall, break & sustained close below the range of  24494----24462 will be a potential trigger point  for going down further and finally break & sustained close below  24365  will threaten the long term uptrend and if it breaks & sustain below  24257 then its major long term trend-line will be violated and it may witness an accelerated fall.  Moving down  it will find its most important & critical support in the range of  23924----23893.70----23869.65—23807.30(some figure may change) , it is a very strong bounce back support 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 this range may trigger fresh fall and the long term uptrend will be in potential danger and it 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 fall may continue. It is in the long term uptrend, but into short, medium & deep correction mode now.

Moving up the key resistance points could be at 24742.88 ----24753.15----24768.35---24803---24912----24957----25038-----25239.36—25260.22----25371----25387.01----25448.47---25443----25496.48—25517---25552----25670----25761----25778---25863---25996----26277.35(some figures may change) 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. Please note that if it moves above the range of 24742.88 ----24753.15----24768.35---24803 and sustain on the closing basis then it will gain a  foothold and raise good hope for extending the up-move, if it moves above the range of 24912----24957----25038 and sustain on the closing basis then it will get good strength to extend the up-move further, if it moves above the range of 25239.36—25260.22----25371----25443----25496.48 and sustain on the closing basis then it will get out of all corrective mode and may resume the up-move again, and sustained close above 25371 will raise the good hope for extending the up-move further and there would be a distinct possibility that it may retest its all-time high of 26277.35 or may go beyond it also. It is in the long term uptrend, but into short & medium term correction mode now.

IMPORTANT NOTE: - THE KEY POINTS FOR THE MONTH OF AUGUST-2025 ARE 24598.60---24753.15 &24768.35 IT HAS TO MOVE& REMAINABOVE THESE POINTS FOR AN UP-MOVE TO CONTINUE, ELSE IT WILL DRIFT DOWN.

TECHNICAL INDICATORS PLACEMENT ON THE DAILY CHART;-

It has made lower top & bottoms on the line & bar chart both, it is below all its short term moving averages on the daily  & mostly below the weekly chart but above rest on the weekly & monthly chart, it is below few medium term moving average on the daily chart, but above rest of the averages on the daily, weekly & monthly chart and finally it is above all the long term moving averages on the daily, weekly & monthly chart, which is more or less a positive sign for the continuation of the up-move. But all the important technical indicators are negative now on the daily chart and majority are in the sell mode such as MACD,EV,ST, PS,  ADX &  RSI is with huge negative divergence, but the silver lining is that it is in the oversold  zone and VM is into buy mode, so it may have a relief rally at times, but that may not last,  so, there is a high probability of it going down further and it is already into the deep correction mode, so in totality as of now it is giving mixed signal therefore at times it may swing both ways but with strong  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 important indicators such as PS/ST &EV are into the sell mode now and it is in the deep overbought zone and RSI has negative divergence, so it can correct at times, but MACD & ADX is in the buy mode, therefore the overall inference is mixed with a tilt towards downside. On the monthly chart it is in overbought zone and with huge negative divergence and MACD is in the sell mode. Therefore, all together indicators on the weekly & monthly chart looks mixed but with a downward bias, therefore it is not yet out of woods and further fall may be on the horizon in coming months.

IT IS SELL ON THE RISE  MARKET  NOW;-

It is into correction mode now therefore it is sell on the rise market now till it closes above 24768.35 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 above its major long term rising trend line which is placed at 24128 & 22481 for the month of July-2025, these are the very strong support point.

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 keep the hope alive of resuming the up-move again.

4 It is way above its top long-term moving averages which is placed at 24365 (figure will change every day) for the day, close below this point would be a threat to the long term uptrend.

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 MACD, EV, ST, ADX, & PS is in the sell mode, so, it can correct at times and it is already into correction mode now.

3. It is into short & medium term correction mode for its recent rise as it closed below its threshold point of 25496.48---25448.47---25387.01---25260.22----25239.36---24742.88 (figure may change), sustained close below these points may drag it down further.

4. It is way below its most critical point of 25371 and if it sustains below it on the closing basis then it will dampen the chances of retesting its all-time high of 26277.35.

5. It is below all its short-term moving averages now on the daily chart and the important average range for day is between 25038----24957----24912----24860---24834---24779(figure will change every day), sustained close below this range may drag it down further.

6. It is below its most critical first make or break bottom of 24753.15 sustained close below it may derail it from the up-momentum track.

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

8. The price action was mixed today.

TRADING CALL: --

1. Safe traders should avoid long trade till it closes above 25075 and sustain. But aggressive traders can try long trade on decline near or within the range of 24650----24600 if it holds this range for some time, but not below it with a stop loss of 24520, 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 24820---24860 with a stop loss of 24920 or can sell if it moves below 24535 and maintain for some time then with a stop loss of 24620. 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