Banknifty Structure Analysis & Trade Plan: 24th September

Detailed Market Structure Breakdown

4-Hour Chart (Macro Trend)

Structure: The long-term trend remains bullish. The index has now corrected to test the lower end of its ascending channel and has found support. The bounce from this area on Monday is a strong signal that the overall uptrend is still intact.

Key Levels:

Major Supply (Resistance): 55,800 - 56,000. This level has proven to be a very strong supply zone, rejecting the price on its recent attempt. It is now a critical resistance to watch.

Major Demand (Support): The most crucial support for the bulls is the 55,050 - 55,200 zone. This area, which includes a prior breakout level, is the key "line in the sand" for the current bullish trend. A strong bounce from this area would confirm the trend's continuation.

1-Hour Chart (Intermediate View)

Structure: The 1H chart shows a clear MSS (Market Structure Shift) to the downside. The price had broken below the lower trendline of the rising channel, but Monday's session saw a strong rebound, bringing it back into the channel's vicinity. The index is now at a crucial decision point.

Key Levels:

Immediate Resistance: The 55,800 level, which is the high of the recent bounce.

Immediate Support: The 55,400 area, which is the bottom of the previous consolidation and the lower channel trendline.

15-Minute Chart (Intraday View)

Structure: The 15M chart provides a clearer picture of the intraday price action. The index opened with a sharp move down but then rallied strongly, reclaiming its lost ground. The price is now trading within a corrective pattern, but the bullish momentum from the close is a positive sign.

Key Levels:

Intraday Supply: The 55,800 area, which is the high of Monday's session.

Intraday Demand: The low of Monday's session near 55,200.

Outlook: The intraday bias is now cautiously bullish, but the market is still in a corrective pattern. The key for today is to watch for a sustained move above or below the current consolidation range.

Trade Plan (Tuesday, 24th September)

Market Outlook: The market is now at a crucial decision point. While the recent bounce is bullish, the overall short-term structure is still in a corrective phase. A breakout from the recent consolidation would provide a clear signal.

Bullish Scenario (Primary Plan)

Justification: The market has shown a strong rebound from a key support area, suggesting that the long-term trend is likely to continue.

Entry: Look for a long entry on a sustained break and 15-minute candle close above the 55,800 resistance zone.

Stop Loss (SL): Place a stop loss below 55,700.

Targets:

T1: 56,000 (Psychological level and major resistance).

T2: 56,200 (Further extension of the rally).

Bearish Scenario (Counter-Trend Plan)

Justification: This is a counter-trend plan and should be approached with caution. It is based on the possibility that the bounce was short-lived and that the overall correction will continue.

Trigger: A confirmed breakdown and 15-minute candle close below the 55,400 immediate support.

Entry: Short entry on a breakdown retest of the 55,400 level.

Stop Loss (SL): Above 55,500.

Targets:

T1: 55,200 (Intraday support).

T2: 55,050 (Major demand zone).

Key Levels for Observation:

Immediate Decision Point: The 55,400 - 55,800 zone.

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

Bearish Confirmation: A break below 55,400.

Line in the Sand: The 55,050 - 55,200 zone. The overall bullish trend is in jeopardy if this level is decisively broken.