CNX-NIFTY
Open—26106.50---High—26133.20---Low---25858.45--Close---25876.85 on 8.1.2026
Support:26129.60/26104.20/26097.85/25057.60/25891/25842.95/25740.80/25726.80/25718.20/25693.25/25669.35/25548.70/25448.50/25318.45/24255.30/25153.65/25079.80/25008.20/24918.65/24882.30/24857.75/24854.80/24792.30/24753.15/24694.35/24587.70/24537.60/24502.15/24498.20/24494.45/24473/24462.40/24404.70/24337.50/24226.70/24198.75/24141.80/24099.70/24094.20/24073.90/23938.85/23935.75/23893.70/23873.35/23869.65/23847.45/23816.15/23807.30/23667.20/23664/23644.80/23637.65/23484.15/23537/23426.30/23391.65/23338.70/23263.15/23110.80/23049.95/23047.25/22976.85/22794.70/22786.90/22775.70/22768.40/22676.75/22625.30/22577.40/22546/22525.65/22502/22314.70/22303.80/22281/22165/22124.70/22104.85/21964.60/21875.25/21860.65/21821.05/21777.65/21710.20/21530.20/21448.65/21281.45/21137.20/21021.88/20976.80/20769.50/20291.50/20222.45/19991.85/19839/19333.60.
Resistance:25057.60/26097.85/26104.20/26129.60/26173.30/26202.60/26236.40/26246.65/26277.35/26325.80/26340/26357/26374/26404/26458/26497/26567/26594/26650/26678/26694/26717/26816/26842/26995/27001/27095/27212/27293/27375/27510/27824.
OVERALL VIEW
ON THE DAILY CHART:
--
It opened on a negative note and thereafter had both side moves during the day and finally, ended the day with a loss of 263.90 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, it was already into correction mode and today it slipped into deep correction mode, below short term rising trend line, below all the short term and few medium term moving average on the daily chart and below few short term moving average on the weekly chart and broken recent bottom on the line and bar chart, so all together these developments are very concerning and can drag it down further. Moving down further it will find support at 25842.95---25740.80---25726.30---25718.40---25693.25---25669.35----25522---25318.45 (figures may change), it may bounce back from any of these points, but break & sustained close below 25693.25 may witness an accelerated fall and finally break & sustained close below 25522 &25318.45 may threaten the long term uptrend and will make the correction more painful time-wise & price-wise both.
Moving up the key resistance points could be at 25878----25891—--25892.77---25951.82----25980-----26051.13---26084----26104.20----26113---26124.28---26129.60----26173.30---26212.73----26223.88---26246.65----26256.33----26277.35—26325.80---26373.20---26357---26374---26404---26458---26497---26567---26594---26650---26678----26694----26717---26816 (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 25980 and sustain on the closing basis then it will raise hope of extending the up-move, if it moves above the range of 26104.20----26113---26124.28---26129.60----26173.30 it will gain strength and will be a positive sign for moving up further, if it moves above the range of 26212.73----26223.88---26246.65----26256.33 and sustain on the closing basis then it will get out of correction mode and may resume the up-move and if it moves above 26277.35 & 26325.80 and sustain on the closing basis then it may get back into strong up-momentum track again, else it may drift down. It is in the strong long-term uptrend, but into short correction mode now.
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 YEAR--2026
ARE 26129.60---26173.30---26325.80 AND TO KEEP THE HOPE ALIVE FOR A CONTINUED
UP-MOVE IT HAS TO SUSTAIN ABOVE 26129.60---26173.30 AND TO GET INTO STRONG UP
MOMENTUM IT HAS TO MOVE ABOVE 26325.80 AND SUSTAIN ON THE CLOSING BASIS
THROUGH-OUT THE YEAR , 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 witness relief rally at times, but that may
not sustain.
2. It is above all
its long terms moving average on the daily chart and the top average is placed
at 25522(figure will change daily) for the day.
4. It is above few
of its medium-term moving averages on the daily, but above all on the weekly
& monthly chart.
NEGATIVE POINTS:-
1. All the important
indicators such as MACD, EV, PS, ADX, ST & VM are in the sell mode and RSI
with negative divergence, so down move may happen at times and may last also.
2. It is below all its
short term moving average on the daily chart and below half of its average on
the weekly chart.
3. It is below few of
its 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, ST,ADX& PS is in the buy mode, 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 and broken all the key points , therefore now it will be
sell on the rise market now till it moves above the range of 26130---26174 and sustain on the
closing basis. But long trade can also be tried on sharp decline and 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 25591 for the month of January-2026; it could be an important & strong support point.
2. It is above its most critical first & second make or break bottom of 25693.25 & 25318.45 sustained close above it will keep the hope alive of resuming the up-move again.
3. It is above its major long-term
rising trend drawn from the bottom of 7511
made on 20.3.2020, which is placed
at 25559(figure will change
and inch up every day) for the day.
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. To get back into strong up-momentum track
it has to move above 26277.35
& 26325.80 and sustain on the closing basis, else it
may drift down.
3. It is
into deep correction mode now as it is below all its threshold point of 26256.33----26223.88---26220.53----26212.73----26124.28---26051.13---25951.82----25892.77 sustained close below these
points can drag it down further.
4. The price
action was negative today.
5. It is below its short term
rising trend line which is placed at 26238 (figure will change daily) for the day, sustained close
below this line is a weak sigh and can drag it down.
6. It is below its inverse head & shoulder neckline of 26104.20 and if it
sustains below is a weak sign.
7. It is below all its short-term moving averages now on the
daily chart and the important average range for day is 26113---26098----26090--26084—26063---26045 (figure will change every day), sustained close below this range can drag
it down further.
8. It is below its 2nd downtrend line, which is placed at 26075(figure will change daily) for the day, it is a negative sign.
9. It has broken recent bottom on
the line & bar chart.
TRADING CALL: --
1. Long trade
can be tried on decline near or within the range of 25807----25738 if it
holds this range for some time then with a stop loss of 25660 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 26080---26100
with a stop loss of 26170 or can sell if it remain below 25878 with
a stop loss of 25960. 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
