CNX-NIFTY
Open—23649.50—High—23694.50---Low---23443.20--Close---23559.95 on 7.2.2025.
Support:23537/23484.15/23426.30/23391.65/23338.70/23263.15/23110.80/23047.25/22976.85/22794.70/22775.70/22525.65/22303.80/21875.25/21860.25/21821.05/21777.65/21710.20/21530.20/21281.45/21137.20/20976.80.
Resistance:23637.65/23644.80/23664/23667.20/23816.15/23873.35/23893.70/23938.85/24073.90/24094.20/24099.70/24141.80/24354.55/24472.80/24498.20/24537.60/24694.35/24753.15/24792.3024854.80/24857.75/25078.30/25234.05/25285.55/25333.65/25445.70/25871.35/26277.35/26328/26995/27095/27212/27293/27381.
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 loss of 43.40 points. The gap it created on 4.2.2025 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 can come down to 23381, but if it
does not fill the gap in the stipulated time then chances of filling the gap
will recede for the time being, but it will fill the gap some day. Please note
that it is often exhibiting volatility, which is not a good sign for a steady
market.
The chart setup and technical parameters on
the daily chart has started improving in the last few days, but now it is below
almost all its critical & important points of 23669.17---23644.80---23637.65----23620----23611(some
figure may change), which is a weak sign and if it remains below these
points then chances of an up-move will get murkier in the year 2025, furthermore
yesterday it fell into short correction mode for its recent rise as it was
below its threshold point of 23669.17 and today it gotten into deep
correction mode for its recent rise as it closed below its threshold point of 23566.49.
But please note that despite all the weak indication still there is a glimmer
of hope that if it could hold the point of 23504 & then the range of
23440----23293 (figures will change daily) it could still bounce back but
it may resume the good up move again once it moves above 23644.80 and
sustain on the closing basis, but break & sustained close below the range
of 23504---23440----23293 may end the up-move for sure and it may start
to drift down. It is important to mention here that as of now it is still
weak on the weekly & monthly chart technical parameters therefore it is not yet out of woods and may witness moderate
to sharp fall in coming weeks & months, but it has to reviewed at regular
interval for any potential positive/negative change. The short-term bias is up now, but medium-term
trend is still down and the long-term uptrend is still threatened and in
jeopardy now.
Similarly moving up the key resistance
points would be at 23611----23620----23637.65----23644.80---23669.17---23746----23893.70----23917----24040-----24049----24167----24303(figures
will change daily). Please note that, if it moves above the range of 23611----23621----23637.65----23644.80---23669.17
and sustain on the closing basis then the hope of continuation of the up-move will
be alive in the year 2025, if it move above 23893.70 and sustain
on the closing basis then it will get a good foothold to build the strong
up-move and then the up move is likely to extend further and if it moves above
the range of 24167----24303 and sustain on the closing basis then the
long term uptrend threat will dissipate and it may somewhat ensure that up-move
can extend further for sure. But to get good strength for the continuation of
the up-move and to get into strong up-momentum track it has to move above 24481.42---24625.43---24753.15---24857.75
& 25078.30 (figure may change) particularly above 24753.15 and
sustain on the closing basis.
HEAD & SHOULDER
PATTERN VISIBLE ON THE DAILY CHART:-It is still below its
neckline which is placed at 23893.70 and if it sustain below it on the closing
basis then the maximum downside target could be in the range of 21850---21510.
Please note that this pattern will be partly negated if it moves above 23893.70
and sustain and it will be fully negated
if it moves above 24857.75 & 25078.35. This is a very powerful pattern and
rarely fails. It is therefore suggested that do not remain short if it closes
above the neckline of 23893.70 and sustain, similarly do not remain long if it
closes below it.
TECHNICAL INDICATORS PLACEMENT ON THE
DAILY CHART;-
It is making higher top & bottom on
the line & bar chart and it is above all its short term moving averages
on the daily chart, above few averages on the weekly & monthly chart also,
also above few medium term moving averages on the daily & weekly chart and
also above one long term moving average, which is a positive sign for the continuation of the up move,
, but it is still below few short term averages on the weekly & below few
on the monthly chart also, it is also below few of its medium term moving
average on the daily chart & below few averages on the weekly chart too and
most importantly it is below almost all
its long term moving average on the daily chart, which is still a severe threat
to the long term uptrend and it is highly
concerning and jeopardized the long term uptrend. But all the seven
important technical indicators are positive now and four indicators are in buy
mode and one with huge positive divergence, but it is in overbought zone in two indicator, therefore, in totality it can extend
the up-move may be with-in-between down
move provided it holds the key support point or range as mentioned in the first
paragraph.
Please keep an eye on the price action for further directional indication.
TECHNICAL
INDICATORS PLACEMENT ON THE WEEKLY & MONTHLY CHART:-
On the weekly
chart almost all indicators are negative, sell mode is on in four indicators,
there is huge negative divergence but it is in the oversold zone and may stage
a recovery but that may not last. On the monthly chart it is in overbought zone
and with huge negative divergence and MACD has triggered sell. Therefore, all
together indicators on the weekly & monthly chart as of now indicates that
it is not yet out of woods and further fall is very much on the horizon in
coming weeks and months and the down move is on. So, keep a watch on the price
action for further directional indication.
IT
IS BUY ON DECLINE MARKET AS OF NOW;-
It is
into deep correction mode for its earlier & recent rise, but pullback mode
is on therefore buy on decline can be
tried at appropriate support point with strict stop loss , similarly short trade can also be tried after reasonable rise at appropriate resistance points with strict stop losses for intraday corrective
gains. As long as it holds the range of 23504---23293
on the closing basis long trade can be tried on decline with appropriate stop
losses, else avoid.
STRENGTH: -
1. It is above its very short,
short & medium pullback threshold point of 22938---23127 & 23276 (figure
may change), sustained close it may help it to move-up further.
2. All the seven technical indicators are positive on the daily chart
with buy signal in four and with huge positive divergence in one indicator.
3. It is making higher top &
bottom on the line & bar chart.
4 It is above all its short-term
moving averages now on the daily chart and the important average range for day
is between 23534----23477----23440----23432---23374---23293(figure will change every day), sustained close above this range will help
in extending the up-move.
WEAKNESS: -.
1. Please note that almost all indicators
on the weekly chart are negative indicates oversold condition, sell mode is on
and negative divergence and finally on the monthly chart it indicates
overbought condition and negative divergence.
2. 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.
3. It is into correction deep mode
now as it closed below some of the correction threshold points of 26043.29----25917.64---25714.81----25098.32-----25064.27-----24625.43-----24521.63---
24481.42-----24047.39----23669.17---23566.49 (figures may change). The other
important correction threshold point is 21848.52 (figure may change) and if it sustain below these points
correction will deepen.
4. It is in the overbought zone on the daily
chart.
5. It is still below almost all
its long-term moving averages therefore severely threatened the uptrend.
6. It is below its long pullback
threshold point of 23611 (figure may change), sustained close
below it can weaken the chances of an up-move.
7. It is below its most critical
points of 23644.80 & 23637.65; please
note that it must stay above these points to keep up the up momentum going in
the year 2025.
8. The price action was negative
today.
TRADING CALL: --
1. Long
trade can be tried on decline near or within the range of 23504---23440
with a stop loss of 23360 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 23684----23750
with a stop loss of 23820. 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
