Banknifty Structure Analysis & Trade Plan: 19th September

Current BANKNIFTY (Yesterday's Close): 55,716.50

Overarching Theme: Bank Nifty is in a strong and impulsive uptrend, having recovered significantly from its recent lows. It's now facing a major supply zone, which could lead to either a decisive breakout or a short-term correction.

Detailed Market Structure Breakdown

4-Hour Chart (Macro Trend)

Structure: A powerful bullish rally is in play. Bank Nifty has broken a key market structure and is now moving within a steep ascending channel. The price action shows a clear sequence of higher highs and higher lows.

Key Levels:

Major Supply Zone (Resistance): 55,800 - 56,000. This is a formidable Order Block (OB) and a prior high that has been a significant barrier. A breakout here would be a major bullish signal.

Major Demand Zone (Support): 55,050 - 55,200. This zone is a confluence of a prior breakout resistance, a FVG, and a psychological round number, making it a critical support level.

Outlook: The macro structure is very bullish. The recent impulsive move has brought the index to a crucial resistance. A pullback to the 55,050 zone would be a healthy test of support.

1-Hour Chart (Intermediate View)

Structure: The 1H chart mirrors the 4H, showing a strong impulsive move up. The price has recently tested the overhead supply zone and shown a minor rejection, indicated by the recent high and the subsequent wick.

Key Levels:

Immediate Resistance: The high around 55,800.

Immediate Support: The lower trendline of the channel, currently around 55,400.

Outlook: The 1H chart suggests the rally is near-term exhausted and a pause or a minor pullback is likely. The price must defend the lower channel support to maintain its bullish momentum.

15-Minute Chart (Intraday View)

Structure: The 15M chart provides the clearest picture of the recent price action. The market has made a "Break of Structure" (BOS) upwards, but is now showing a short-term corrective pullback from the high. This is indicated by the price trading below the blue EMA and moving lower.

Key Levels:

Intraday Supply Zone: The high around 55,800.

Intraday Demand Zone: The bottom of the current trend at 55,500. This area aligns with the blue EMA and is the first key support to watch.

Outlook: Intraday, the bias is slightly neutral-to-bearish as the market is correcting. The key will be whether the 55,500 level holds.

📈 Today's Trade Plan (Friday, 19th September)

Market Outlook: Bank Nifty is at a make-or-break point. After a strong rally, it is now testing a major resistance level. The upcoming move will be decided by whether it breaks out or pulls back to re-test support.

Bullish Scenario (Primary Plan)

Justification: The multi-timeframe trend is overwhelmingly bullish. Any pullback is likely to be a short-lived retracement before the next leg up. A breakout would be the most powerful signal.

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

Stop Loss (SL): Below 55,700 or the low of the breakout candle.

Targets:

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

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

Bearish Scenario (Secondary Plan)

Justification: This plan is for a counter-trend trade, based on the rejection from the major supply zone and the current 15M corrective structure.

Trigger: A sustained move and 15-minute candle close below the immediate support at 55,500.

Entry: Short entry on a breakdown retest of the 55,500 level.

Stop Loss (SL): Above 55,600 to protect against a fakeout.

Targets:

T1: 55,400 (Bottom of the 1H channel).

T2: 55,200 - 55,050 (Strong 4H chart demand zone).

Key Levels for Observation:

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

Bullish Confirmation: A break above 55,800.

Warning Sign: A drop below 55,500.

Major Bullish Support: The 55,050 - 55,200 zone is crucial. A break below this would signal a significant shift in the trend.