CNX-NIFTY
Open—25981.85---High—26098.25---Low---25938.95--Close---26033.75 on 4.12.2025
Support:25856.70/25740.80/25718.20/25669.35/25548.70/25448.35/25318.45/24255.30/25153.65/25079.80/25008.20/24918.65/24882.30/24857.75/24854.80/24792.30/24753.15/24694.35/24587.70/24537.60/24502.15/24498.20/24494.45/24473/24462.40/24404.70/24337.50/24226.70/24198.75/24141.80/24099.70/24094.20/24073.90/23938.85/23935.75/23893.70/23873.35/23869.65/23847.45/23816.15/23807.30/23667.20/23664/23644.80/23637.65/23484.15/23537/23426.30/23391.65/23338.70/23263.15/23110.80/23049.95/23047.25/22976.85/22794.70/22786.90/22775.70/22768.40/22676.75/22625.30/22577.40/22546/22525.65/22502/22314.70/22303.80/22281/22165/22124.70/22104.85/21964.60/21875.25/21860.65/21821.05/21777.65/21710.20/21530.20/21448.65/21281.45/21137.20/21021.88/20976.80/20769.50/20291.50/20222.45/19991.85/19839/19333.60.
Resistance: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 flat to negative note and thereafter had both side moves during the day and finally, ended the day with a gain of 47.75. It is also important to mention here that it still has earlier unfilled gaps (gap points on downside are 25715.80,25365.15, 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.
It is into correction mode for its recent rise, 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, below the neckline point of 26104.40 of the inverse head & shoulder pattern, below majority of its short term moving averages after a long time, below its 2nd down trend-line which is placed at 26081 for the day and above all volatility is a deep concern, so all together it is exhibiting weak sign. But the technical setup still gives a ray of hope for the continuation of the up-move; so watch out how it pans-out in the next 1-2 days. However please note that moving down its key support points are at 26014.92---25993.61---25967----25915.61----25856.54—25842.95 (figures may change) and as long as it holds these points on the closing basis then the chances of an up-move will be alive, it is already into correction mode, but break and sustained close below the range of 26014.92---25993.61---25967may dampen the possibility of an up-move, break & sustained close below the range of 25915.61----25856.54—25842.95 may trigger fresh fall and will push it into deep correction mode and then it may witness moderate to sharp fall and will find its next critical support at 25718---25520---25318.45---25238(figures may change), it may bounce back from any of these points, but break & sustained close below 25318.45---25238 may make the correction painful time-wise & price-wise and will threaten the long term uptrend.
Moving up the key resistance points could be at 26048----26088.07---26104.20----26187.74----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. But please note that if it moves above the range of 26048----26088.07---26104.20and sustain on the closing basis then it may give a ray of hope that it can extend the up-move, but to get out of corrective mode and to keep the up-momentum going in the month of December-2025 it has to move above the range of 26187.74----26202.95----26211.85---26246.65----26277.35—26310.45---26325.80and sustain on the closing basis, else it may drift down further. 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. Only one
important technical indicator ADX is in the buy mode, so it may not witness a
lasting up-move.
2. It is above all
its long terms moving average on the daily chart and the top average is placed
at 25238(figure will change daily) for the day.
4. It is above all
its medium-term moving averages on the daily, weekly & monthly chart.
NEGATIVE POINTS:-
1. Major important
indicators such as MACD,EV, PS,VM & ST are in the sell mode and it is in
the overbought zone and RSI with negative divergence, so down move may happen
at times and it can extend also.
2. It is below 4 out of 6 of its short term moving averages
on the daily chart, after a long time. It is a weak sign.
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: - Almost all-important technical indicators are positive MACD, EV, ST, ADX& PS is in the buy mode but RSI is with negative divergence and VM is in the sell mode, 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 BUY ON DECLINE MARKET NOW;-
It is
buy on decline market till it holds 25967,
on the closing basis.
But short
trade can also be tried on the reasonable or sharp rise
near critical resistance points or range or on the price breakdown with strict
stop losses, for
intraday corrective gains. Please note that today it slipped into the
correction mode but it is not alarming now; therefore be alert & cautious
in the long trade at this point of time.
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 25280(figure will change
and inch up every day) for the day.
5. It is only above two of its short-term moving averages now on the daily
chart and the important average range for day is between 26082---26077----26054--26048—25974--25967
(figure will change every day), sustained close above this
range can help it to extend the up-move further, else it may drift down.
6. It is above few of its correction
threshold point of 26014.92---25915.61-----25856.54 (figure may change), sustained close above these
points can help it to extend the up-move.
7. It is above its major long term downtrend
line which is placed at 25309(figure will
change daily)
for the day, sustained close above it may extend the up-move.
8. Its short term rising trend
line is placed at 25897(figure will change daily) for the day, break below it on
the closing basis may accelerate the fall.
9. It still has higher top on the
line & bar chart.
10. The price
action was positive today.
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 26346(figure will change) for the day, break above this could be a highly
positive sign for the up-move.
3. It has slipped into correction
mode today as it has closed below few of its threshold points of 26211.85
---26187.74---26088.07--- (figure may change), sustained close below these
points can pull it down further.
4. It is below its inverse head & shoulder neckline of 26104.20 and if it
sustains below it then pattern can fail.
5. It is below the other downtrend line, which is placed at 26081(figure will change daily), it is a weak sign.
TRADING CALL: --
1. Long trade
can be tried on decline near or within the range of 25993----25967 if it
holds this range for some time then with a stop loss of 25860 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 26160---26195
with a stop loss of 26250 or can sell if it moves below 25840
and maintain for some time with a stop loss of 25930. 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
