1. Market Structure Analysis (Top-Down Breakdown)
4-Hour Chart (4H - Higher Timeframe/Bias):
Structure: The Bank Nifty is in a Strong, Vertical Uptrend, continuously making Higher Highs and Higher Lows inside a steep ascending channel. The last move was a decisive Break of Structure (BOS) to a new all-time high. This confirms that the institutional order flow is strongly bullish.
Bias: Strong Bullish. Maintain a "buy-on-dips" approach.
POI Focus: The area just below the current price around 57,200 marks the last clear Fair Value Gap (FVG) and Order Block (OB) created by the aggressive move on the 16th and 17th. This FVG area is the high-probability target for a safe entry.
1-Hour Chart (1H - Intermediate Structure/Pullback):
Structure: The 1H chart shows price consolidating near the upper boundary of the channel after making the new high. This consolidation suggests a pause before either the next move up or a retracement to clear inefficiencies.
Entry POI: The area of 57,000 - 57,250 aligns with the lower boundary of the immediate ascending channel and a prior swing high/FVG, confirming this as a strong short-term Demand Zone.
15-Minute Chart (15M - Execution Structure):
Structure: The 15M chart clearly shows the current short-term range bound movement near the top. We will use this timeframe to confirm that any bearish move is only a pullback and to find the precise entry trigger based on a localized MSS.
Critical Invalidating Low: The primary protection for the immediate rally is the swing low around 56,800.
2. Key Levels and Points of Interest (POI)
Immediate Resistance / Target Zone: 58,000 (Psychological target and extension level). A decisive break above this targets 58,500 - 59,000.
Primary Demand Zone (POI / FVG): 57,000 - 57,250 (The highest probability zone for a reversal and continuation of the uptrend).
Critical Invalidating Low (Major Bearish MSS): 56,500 (A sustained close below this would signal a major Bearish MSS and shift the bias to short).
3. Trade Setup: Bullish MSS Reversal (Primary Plan - Buy the Dip)
This setup offers the best risk-to-reward ratio in the current environment.
Scenario: Price retraces to the Primary Demand Zone (POI) after the weekend/Monday open.
Entry Zone: Wait for the pullback into the 57,000 - 57,250 region.
Entry Trigger: Once price enters the POI, switch to a lower timeframe (5M/1M) and wait for a clear Bullish MSS (break of the last minor lower high) with a strong candle close. Execute a Long (Buy) trade on this entry confirmation.
Stop-Loss (SL): Place the stop-loss order safely below the demand zone and channel support, around 56,900.
Take-Profit (TP):
T1: Target the psychological level at 58,000.
T2: Trail for 58,500.
4. Contingency Plan: Bearish MSS (Trend Flip/Aggressive Short)
This high-risk plan is for a failure of the current uptrend.
MSS Confirmation: A decisive Bearish MSS is confirmed if the Bank Nifty breaks and sustains a close below the Critical Low of 56,500 on the 15-minute or 1-hour chart with displacement.
Entry Trigger: Execute a Short (Sell) trade on the retest (pullback) to the broken 56,500 level (now new resistance/supply).
Stop-Loss (SL): Place the stop-loss order above the new supply zone, around 56,700.
Take-Profit (TP): Target the next major support levels: 56,200 and 56,000 (Psychological support).
4-Hour Chart (4H - Higher Timeframe/Bias):
Structure: The Bank Nifty is in a Strong, Vertical Uptrend, continuously making Higher Highs and Higher Lows inside a steep ascending channel. The last move was a decisive Break of Structure (BOS) to a new all-time high. This confirms that the institutional order flow is strongly bullish.
Bias: Strong Bullish. Maintain a "buy-on-dips" approach.
POI Focus: The area just below the current price around 57,200 marks the last clear Fair Value Gap (FVG) and Order Block (OB) created by the aggressive move on the 16th and 17th. This FVG area is the high-probability target for a safe entry.
1-Hour Chart (1H - Intermediate Structure/Pullback):
Structure: The 1H chart shows price consolidating near the upper boundary of the channel after making the new high. This consolidation suggests a pause before either the next move up or a retracement to clear inefficiencies.
Entry POI: The area of 57,000 - 57,250 aligns with the lower boundary of the immediate ascending channel and a prior swing high/FVG, confirming this as a strong short-term Demand Zone.
15-Minute Chart (15M - Execution Structure):
Structure: The 15M chart clearly shows the current short-term range bound movement near the top. We will use this timeframe to confirm that any bearish move is only a pullback and to find the precise entry trigger based on a localized MSS.
Critical Invalidating Low: The primary protection for the immediate rally is the swing low around 56,800.
2. Key Levels and Points of Interest (POI)
Immediate Resistance / Target Zone: 58,000 (Psychological target and extension level). A decisive break above this targets 58,500 - 59,000.
Primary Demand Zone (POI / FVG): 57,000 - 57,250 (The highest probability zone for a reversal and continuation of the uptrend).
Critical Invalidating Low (Major Bearish MSS): 56,500 (A sustained close below this would signal a major Bearish MSS and shift the bias to short).
3. Trade Setup: Bullish MSS Reversal (Primary Plan - Buy the Dip)
This setup offers the best risk-to-reward ratio in the current environment.
Scenario: Price retraces to the Primary Demand Zone (POI) after the weekend/Monday open.
Entry Zone: Wait for the pullback into the 57,000 - 57,250 region.
Entry Trigger: Once price enters the POI, switch to a lower timeframe (5M/1M) and wait for a clear Bullish MSS (break of the last minor lower high) with a strong candle close. Execute a Long (Buy) trade on this entry confirmation.
Stop-Loss (SL): Place the stop-loss order safely below the demand zone and channel support, around 56,900.
Take-Profit (TP):
T1: Target the psychological level at 58,000.
T2: Trail for 58,500.
4. Contingency Plan: Bearish MSS (Trend Flip/Aggressive Short)
This high-risk plan is for a failure of the current uptrend.
MSS Confirmation: A decisive Bearish MSS is confirmed if the Bank Nifty breaks and sustains a close below the Critical Low of 56,500 on the 15-minute or 1-hour chart with displacement.
Entry Trigger: Execute a Short (Sell) trade on the retest (pullback) to the broken 56,500 level (now new resistance/supply).
Stop-Loss (SL): Place the stop-loss order above the new supply zone, around 56,700.
Take-Profit (TP): Target the next major support levels: 56,200 and 56,000 (Psychological support).
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.