AN ELABORATE TECHNICAL UPDATE ON CNX-NIFTYFOR-18.12.2025

 

CNX-NIFTY

Open—25902.40---High—25929.15---Low---25770.35--Close---25818.55 on 17.12.2025

Support:25740.80/25718.20/25669.35/25548.70/25448.35/25318.45/24255.30/25153.65/25079.80/25008.20/24918.65/24882.30/24857.75/24854.80/24792.30/24753.15/24694.35/24587.70/24537.60/24502.15/24498.20/24494.45/24473/24462.40/24404.70/24337.50/24226.70/24198.75/24141.80/24099.70/24094.20/24073.90/23938.85/23935.75/23893.70/23873.35/23869.65/23847.45/23816.15/23807.30/23667.20/23664/23644.80/23637.65/23484.15/23537/23426.30/23391.65/23338.70/23263.15/23110.80/23049.95/23047.25/22976.85/22794.70/22786.90/22775.70/22768.40/22676.75/22625.30/22577.40/22546/22525.65/22502/22314.70/22303.80/22281/22165/22124.70/22104.85/21964.60/21875.25/21860.65/21821.05/21777.65/21710.20/21530.20/21448.65/21281.45/21137.20/21021.88/20976.80/20769.50/20291.50/20222.45/19991.85/19839/19333.60.

Resistance:25856.70/26097.85/26104.20/26246.65/26277.35/26310.45/26318/26335/26357/26365/26404/26448/26497/26549/26590/26650/26678/26694/26842/26995/27001/27095/27212/27293/27375/27510/27824.

OVERALL VIEW ON THE DAILY CHART: --

It opened on a positive note and thereafter had both side moves during the day and finally, ended the day with a loss of 41.55 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 quite a bit, it is into deep correction mode for its recent rise, way below its key points for the month of December-2025(mentioned below in the important note) which are important to keep the up momentum on, made lower top & bottom on the line chart, below the neckline point of inverse head & shoulder pattern, below its 2^nd down trend-line, moved below quite a few moving average on the daily & weekly chart, broken short term rising trend-line  and to top it all volatility is a deep concern and it is below all its recent key support points, so all together it is giving extremely weak signal. Therefore further fall looks very much likely provided it does not bounce back above certain key points in a shortest possible time. Moving down it will find its next critical support points at 25740.80---25718.40---25693.25---25669.35---25520-----25348----25318.45 (figures may change), it may bounce back from any of these points, but break & sustained close below the range of 25348-----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 25842.53----25842.95----25856.54---25891---25915.61----25943------26014.92---26020----26088.07---26104.20----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 25842.53----25842.95 and sustain on the closing basis then  it may give a ray of hope that it can move further,  if it moves above the range of 25915.61----25943------26014.92---26020 it may gain some strength and can extend the up-move, if it moves above the range of 26088.07---26104.20---26187.74----26199.29---26202.95----26211.85 it will get out of corrective mode and may resume the up-move again, but to keep the up-momentum going in the month of December-2025 it has to move above the range 26202.95—26310.45---26325.80 and sustain on the closing basis, else it may drift down .  It is in the strong long-term uptrend, but now into deep 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. It is in the neutral/oversold zone , so it may rally at times but that may not last.

2. It is above all its long terms moving average on the daily chart and the top average is placed at 25348(figure will change daily) for the day.

3. It is above almost all its short term moving averages on the weekly& 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. All the important indicators such as MACD, EV, PS, 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 its short term moving averages on the daily chart & below few on the weekly chart also.

3. It is below few of its medium term moving averages on the daily chart.

In view of the above observation there is a mixed possibility and it can swing both ways but with a 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 into deep correction mode for its recent rise, therefore it is sell on the rise market now till it close above 26104.20 and sustain.  But long trade can also be tried on decline or 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 24.3.2020, which is placed at 25466(figure will change and inch up every day) for the day.

5. It is above its major long term downtrend line which is placed at 25271(figure will change daily) for the day, sustained close above it may keep the hope alive for an 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. Top to top rising trend line placed at 26352(figure will change) for the day, break above this could be a highly positive sign for the up-move.

3. It is into correction mode as it is below all of its correction threshold points of 26211.85 ---26187.74----26088.07---26014.92---25915.61----25856.54 (figure may change), sustained close below these points can pull it down further.

4. It has made lower top & bottom on the line & bar chart.

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

6. It is below its inverse head & shoulder neckline of 26104.20 and if it sustains below it then pattern can fail and it can slide down further.

7. The price action was negative today.

8. It is below all its short-term moving averages now on the daily chart and the important average range for day is 26018---25975----25943--25935—25915 (figure will change every day), sustained close below this range can drag it down further.

9. It is below its short term rising trend line which is placed at 25875 (figure will change daily) for the day, sustained close below this line can drag it down further.

TRADING CALL: --

1. Long trade can be tried on decline near 25758 if it holds this point for some time then with a stop loss of 25680 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 25930---25960 with a stop loss of 26030 or can sell if it moves below 25690 and maintain for some time with a stop loss of 25780. 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