Sensex Structure Analysis & Trade Plan: 27th October

4-Hour Chart (Macro Trend)

Structure: The Sensex has confirmed a Break of Structure (MSS) on the aggressive short-term momentum, breaking below the lower trendline of the steep ascending channel. The price has corrected deeply, with the final 4H candle closing as a large bearish candle.

Key Levels:

Major Supply (Resistance): 84,800 - 85,000. This area (the high from Friday and the FVG on the chart) is the immediate overhead resistance.

Major Demand (Support): 83,600 - 83,900. This area aligns with the lower trendline of the corrective pattern and the FVG (Fair Value Gap), making it the must-hold zone for the overall bullish structure [refer to charts].

Outlook: The bias is Corrective within an Uptrend. We expect the market to continue correcting towards the 83,600 - 83,900 support zone before finding significant buying interest.

1-Hour Chart (Intermediate View)

Structure: The 1H chart shows a clear breakdown from the steep ascending channel. The price is now trading within a newly formed descending channel (or a bearish flag), confirming the short-term correction.

Key Levels:

Immediate Resistance: 84,400 (Upper boundary of the descending channel/FVG).

Immediate Support: 83,800 - 84,000 (Lower channel boundary).

15-Minute Chart (Intraday View)

Structure: The 15M chart confirms the sharp descending channel and strong intraday bearish control. The final close was near the lows, indicating selling pressure remains.

Key Levels:

Intraday Supply: 84,400.

Intraday Demand: 83,800.

Outlook: Bearish for the session open. A "Sell on Rise" strategy is favorable.

📈 Structure Analysis & Trade Plan: 27th October

Market Outlook: Sensex is undergoing a short-term correction after hitting the 85,290 high, driven by renewed trade fears. The primary strategy is to sell the rally/breakdown or buy a major reversal at strong support.

Bearish Scenario (Primary Plan: Correction Continuation/Sell on Rise)

Justification: The sharp breakdown below the channel favors a deeper correction toward the major demand zone.

Entry: Short entry on a retest and rejection of the 84,400 - 84,600 zone (breakdown level/FVG) OR Short a decisive break and 15-minute candle close below 84,000.

Stop Loss (SL): Place a stop loss above 84,800 (above the last swing high/FVG).

Targets:

T1: 83,800 (Lower channel support).

T2: 83,600 (Major FVG support).

T3: 83,200 (Next major support).

Bullish Scenario (Counter-Trend/Reversal)

Justification: Only valid if strong buying emerges, likely on positive global or corporate news.

Trigger: A sustained move and close above 85,000.

Entry: Long entry on a confirmed 15-minute close above 85,000.

Stop Loss (SL): Below 84,500.

Targets:

T1: 85,290 (All-Time High retest).

T2: 85,600 (Extension target).

Key Levels for Observation:

Immediate Decision Point: 83,800 - 84,600 range.

Bearish Confirmation: Sustained trade below 84,000.

Bullish Warning: A move back above 84,800.

Line in the Sand: 83,600. A break below this level shifts the medium-term bias to a deeper corrective phase.