AN ELABORATE TECHNICAL UPDATE ON CNX-NIFTY FOR-31.12.2025

 

CNX-NIFTY

Open—25940.90---High—25976.75---Low---25878--Close---25938.85 on 30.12.2025

Support:25891/25842.95/25740.80/25726.80/25718.20/25693.25/25669.35/25548.70/25448.50/25318.45/24255.30/25153.65/25079.80/25008.20/24918.65/24882.30/24857.75/24854.80/24792.30/24753.15/24694.35/24587.70/24537.60/24502.15/24498.20/24494.45/24473/24462.40/24404.70/24337.50/24226.70/24198.75/24141.80/24099.70/24094.20/24073.90/23938.85/23935.75/23893.70/23873.35/23869.65/23847.45/23816.15/23807.30/23667.20/23664/23644.80/23637.65/23484.15/23537/23426.30/23391.65/23338.70/23263.15/23110.80/23049.95/23047.25/22976.85/22794.70/22786.90/22775.70/22768.40/22676.75/22625.30/22577.40/22546/22525.65/22502/22314.70/22303.80/22281/22165/22124.70/22104.85/21964.60/21875.25/21860.65/21821.05/21777.65/21710.20/21530.20/21448.65/21281.45/21137.20/21021.88/20976.80/20769.50/20291.50/20222.45/19991.85/19839/19333.60.

Resistance:25057.60/26097.85/26104.20/26202.60/26236.40/26246.65/26277.35/26310.45/26325.80/26335/26357/26365/26404/26448/26497/26549/26590/26650/26678/26694/26842/26995/27001/27095/27212/27293/27375/27510/27824.

OVERALL VIEW ON THE DAILY CHART: --

It opened on a flat to negative note and thereafter had both side moves during the day and finally, ended the day with a loss of 3.25 points. It is also important to mention here that it still has earlier unfilled gaps (gap points on downside are 25365.15, 24164, 22923, 22468 & 22254) 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 has weakened again a bit, it is still into correction mode for its recent rise, it fell below its neckline of inverse head & shoulder pattern, below short term rising trend-line, below some short & medium term moving averages on the daily & weekly chart, and to top it all volatility is a deep concern for a steady market. But the good thing is that it still has higher bottom & top on the line chart and above certain recent critical points of 25915.61-----25891—--25856.54---25842.95---- 25842.53 and if it sustain above these points on the closing basis then the chances of continuation of the up move will be alive, else it will resume the down move again because it is already in the correction mode. Break & sustained close below the range of 25915.61---25891—---25856.54---25842.95---- 25842.53 will dampen the chances of up-move for a while and will push it into deep correction mode and will drag it down further. Moving down further it will find its next critical support points at 25740.80---25726.30---25718.40---25693.25---25669.35---25520-----25440----25318.45 (figures may change), it may bounce back from any of these points, but break & sustained close below the range of 25440-----25318.45 may make the correction more painful time-wise & price-wise both  and will threaten the long term uptrend as well.   

Moving up the key resistance points could be at 25983----26000-----26014.92----26030---26070----26088.07---26104.20----26115.97---26187.74----26199.29---26202.95----26211.85----26246.65----26277.35—26310.45---26325.80---26328—26405---26492 (some figures may change daily or at some point of time) it may correct at any of these points and then may resume the up-move again or may halt the up-move for a while. Please note that if it moves above the range of 25983----26000-----26014.92----26030---26070----26088.07---26104.20 and sustain on the closing basis then it may gain some strength to move up further, if it moves above the range of 26115.97---26187.74----26199.29---26202.95----26211.85 and sustain on the closing basis then, it will get out of corrective mode and may retest its all-time high of 26325.80 or may go beyond it also. It is in the strong long-term uptrend, but now into correction mode for its recent rise.  

INVERSE HEAD & SHOULDER PATTERN VISIBLE:- If it is above its neckline of 26104.20 and  sustains above it on the closing basis then the maximum upside target could be in the range of 26800-26900 but the up-move can halt or retreat earlier also. Similarly sustained close below 26104.20 & then below 25718.20 will be a sign of pattern failure and then it will drift down further.

IMPORTANT NOTE: - THE IMPORTANT POINTS FOR THE MONTH OF DECEMBER-2025 ARE 26202.95----26310.45 & 26325.80 AND TO KEEP THE UP MOMENTUM GOING IN THIS MONTH IT HAS TO SUSTAIN ABOVE THESE POINTS ON THE CLOSING BASIS, ELSE IT MAY START TO DRIFT DOWN.

TECHNICAL INDICATORS  AND MOVING AVERAGE PLACEMENT ON THE CHART;-

POSITIVE POINTS:-

1. Few important indicators such as PS is in the buy mode, it is in the neutral/oversold zone so it may rally up at times but that may not sustain at this point of time.

2. It is above all its long terms moving average on the daily chart and the top average is placed at 25440(figure will change daily) for the day.

3. It is almost above all its short term moving averages on the weekly& above all on the monthly chart.

4. It is above almost all its medium-term moving averages on the daily, above all on the weekly & monthly chart.

NEGATIVE POINTS:-

1. Few important indicators such as MACD, EV,ST,VM &ADX are in the sell mode and RSI with negative divergence, so down move may happen at times and it can extend also.

2. It is below all short terms moving average on the daily chart & below few on the weekly chart.

3. below few medium term moving average on the daily chart.

In view of the above observation there is a mixed possibility and it can swing both ways but with a slight downward-bias as of now. Furthermore please also note that earlier vertical rise, unfilled gaps, negative divergence and in the overbought zone on weekly & monthly chart is still a concern, therefore fall also cannot be ruled out in coming weeks & months. 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: - Few important technical indicators are positive MACD, EV, ADX& PS is in the buy mode, ST & VM is in the sell mode and RSI is with negative divergence and it is in the overbought zone, therefore it may witness corrective down move at times.

MONTHLY CHART: -Few indicators are in buy mode such as ST,PS & ADX, but key indicator such as MACD & VM  are in the sell mode, it is in the overbought zone and with negative divergence in RSI. Therefore, all together indicators are painting a mixed picture now with slight tilt towards down-side as of now; therefore, further fall in the coming months cannot be ruled out, so be watchful.

IT IS SELL ON THE RISE MARKET  NOW;-

It is still into correction mode for its recent rise and below its critical point of 26104.20, therefore as long as it stays below it on the closing basis; it will be sell on the rise market.  But long trade can also be tried on sharp 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 25344 for the month of December-2025; it could be an important & 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 first & second make or break bottom of 25318.45 & 24587.70 sustained close above it will keep the hope alive of resuming the up-move again.

4. It is above its major long-term rising trend drawn from the bottom of 7511 made on 20.3.2020, which is placed at 25509(figure will change and inch up every day) for the day.

5. It is into correction mode but still above few of its correction threshold points of ---25915.61----25856.54 (figure may change), sustained close above these points can keep the hope alive for up-move.

6. It still has higher top & bottom on the line & bar chart.

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 still into correction mode as it is below few of its correction threshold points of 26211.85 ---26187.74----25115.97---26088.07---26014.92 (figure may change), sustained close below these points can pull it down.

3. The price action was mixed today.

4. It is below its 2nd downtrend line, which is placed at 26088(figure will change daily) for the day, it is a negative sign.

5. It is below its inverse head & shoulder neckline of 26104.20 and if it sustains below it on the closing basis then it can slide-down further.

6. It is below all its short-term moving averages now on the daily chart and the important average range for day is 26018---26003----25989--25988—25983 (figure will change every day), sustained close below this range can drag it down.

7. It is below its short term rising trend line which is placed at 26070 (figure will change daily) for the day, sustained close below this line can help it to slide-down further.

TRADING CALL: --

1. Long trade can be tried on decline near or within the range of 25913----25888 if it holds this range for some time then with a stop loss of 25820 or can buy if it moves above 25983 and maintain for some time then with a stop loss of 25880 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 26040---26080 with a stop loss of 26150. 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