Banknifty Structure Analysis & Trade Plan: 6th October

Detailed Market Structure Breakdown

4-Hour Chart (Macro Trend)

Structure: The Bank Nifty is in a confirmed bullish bounce phase. The index has decisively broken out of the steep descending channel and closed strongly above the key 55,400 level. This action signals a powerful Break of Structure (BOS), establishing a new leg up from the 54,250 demand zone.

Key Levels:

Major Supply (Resistance): 55,800 - 56,000. This remains the key overhead supply zone from the September highs (Order Block).

Major Demand (Support): 54,250 - 54,400. This is the key reversal low. The immediate short-term support is 54,800 - 55,000.

Outlook: The medium-term bias has shifted to strongly bullish. The consolidation is complete, and the index is now targeting the 56,000 zone.

1-Hour Chart (Intermediate View)

Structure: The 1H chart shows a clear Break of Structure (BOS) on the upside, as the price broke the descending trendline and key horizontal resistance. The index is now trading within a clear ascending channel, making higher highs and higher lows.

Key Levels:

Immediate Resistance: 55,800.

Immediate Support: 55,400 - 55,500 (This area was a major point of contention and is now expected to act as support).

15-Minute Chart (Intraday View)

Structure: The 15M chart shows strong bullish momentum, with the price breaking out of a triangular consolidation pattern. The price has successfully reclaimed key liquidity levels and is poised for continuation.

Key Levels:

Intraday Supply: 55,800.

Intraday Demand: 55,400.

Outlook: Strongly Bullish.

📈 Trade Plan (Monday, 6th October)

Market Outlook: The Bank Nifty is in a powerful bullish phase, showing relative strength compared to Nifty. The primary strategy will be to buy on dips or buy on continuation.

Bullish Scenario (Primary Plan)

Justification: The confirmed reversal, breakout from the descending channel, and strong close near the day's high all point to a move toward the major supply zone.

Entry: Long entry on a decisive break and 15-minute candle close above 55,800. Alternatively, look for a dip entry near 55,400 (the recent breakout level).

Stop Loss (SL): Place a stop loss below 55,200 (below the immediate FVG/swing low).

Targets:

T1: 56,000 (Psychological resistance/Order Block).

T2: 56,200 (Extension target).

T3: 56,500 (Upper resistance).

Bearish Scenario (Counter-Trend Plan)

Justification: This high-risk, counter-trend plan only becomes valid if the rally fails dramatically at the open.

Trigger: A decisive break and 1-hour candle close below 55,100.

Entry: Short entry below 55,100.

Stop Loss (SL): Above 55,400.

Targets:

T1: 54,800 (Minor support/FVG).

T2: 54,400 (Key reversal support).

Key Levels for Observation:

Immediate Decision Point: 55,500 - 55,800 zone.

Bullish Confirmation: A break and sustained move above 55,800.

Bearish Warning: A move below 55,200 suggests a reversal failure and consolidation.

Line in the Sand: 55,000. Below this level, the short-term bias shifts back to neutral-to-bearish.