Banknifty Structure Analysis & Trade Plan: 7th NovemberDetailed Market Structure Breakdown
4-Hour Chart (Macro Trend)
Structure: The Bank Nifty is in a Corrective Phase. The price has broken below the key 57,800 support and is now trending lower within a descending channel. The recent bearish candle (Nov 6) shows bears are dominating the move, pulling the price toward the deeper support levels.
Key Levels:
Major Supply (Resistance): 58,000 - 58,200. This area (the breakdown level and previous swing low) is the key overhead resistance.
Major Demand (Support): 57,100 - 57,300. This is the most critical support zone, aligning with the lowest point of the previous correction and a major FVG (Fair Value Gap) on the chart.
Outlook: The short-term bias is Bearish. The failure to find support at the 57,800 level accelerates selling pressure.
1-Hour Chart (Intermediate View)
Structure: The 1H chart is strongly bearish, trading in a well-defined descending channel. The market is making lower lows and lower highs, and the price closed near the channel's lower boundary.
Key Levels:
Immediate Resistance: 57,800 (Upper boundary of the descending channel).
Immediate Support: 57,400 (Lower boundary of the descending channel).
15-Minute Chart (Intraday View)
Structure: The 15M chart confirms the steep descending channel and strong intraday bearish control. The market is consolidating near the low, suggesting a short-term pause before the next leg down.
Key Levels:
Intraday Supply: 57,800.
Intraday Demand: 57,400.
Outlook: Strongly Bearish.
📈 Structure Analysis & Trade Plan: 7th November
Market Outlook: The Bank Nifty is in a strong bearish trend. The structure favors continuation toward the macro support at 57,100. The overall strategy is Sell on Rise or Breakdown.
Bearish Scenario (Primary Plan: Correction Continuation/Sell on Rise)
Justification: The breakdown below 57,800 and the confirmed descending channel favor continuation toward the macro support.
Entry: Short entry on a successful retest and rejection of the 57,800 - 57,900 level (upper channel resistance/FVG) OR Short on a decisive break and 15-minute close below 57,400.
Stop Loss (SL): Place a stop loss above 58,000 (above the immediate swing high).
Targets:
T1: 57,400 (Lower channel support).
T2: 57,100 (Major FVG demand zone).
Bullish Scenario (Counter-Trend/Reversal)
Justification: A short-covering bounce is possible if the market aggressively reclaims the channel.
Trigger: A sustained move and close above 58,000.
Entry: Long entry on a confirmed 15-minute close above 58,000.
Stop Loss (SL): Below 57,800.
Targets:
T1: 58,200 (Major overhead resistance).
T2: 58,400 (Recent swing high).
Key Levels for Observation:
Immediate Decision Point: 57,400 - 57,800 zone.
Bearish Confirmation: Sustained trade below 57,400.
Bullish Confirmation: A move back above 58,000.
Line in the Sand: 57,400. Below this, the selling pressure is expected to increase toward 57,100.
