Nifty Structure & Trade Plan: 6th August

🔎 Nifty Market Structure Analysis

4H Chart

Trend Bias: Bearish → price is still making lower highs and lower lows.

Supply Zones:

24,880 – 24,940 (fresh supply, last bearish OB).

25,220 – 25,280 (major supply; high confluence).

Demand Zone:

24,520 – 24,560 (strong demand; multiple rejections).

Liquidity: Sell-side liquidity resting below 24,520, which may attract a sweep.

1H Chart

Price is consolidating between 24,520 (demand) and 24,880 (supply).

Recent bounce shows buyers defending 24,550–24,580, but follow-through is weak.

Multiple FVGs (Fair Value Gaps) above; could act as magnets if price pushes up.

15M Chart

Microstructure: Attempted bounce from 24,560, but supply pressure visible near 24,720 – 24,760.

Short-term bullish recovery possible, but supply overhead is heavy.

Any strong rejection near 24,750 would confirm continuation lower.

📌 Trade Plan for Tomorrow (6th Aug)

Scenario 1 – Bearish Continuation (High Probability)

Entry: Short near 24,720 – 24,760 supply zone.

Stop Loss: Above 24,800 (recent swing high).

Targets:

T1: 24,560

T2: 24,400 – 24,420 (major liquidity sweep zone).

Rationale: Aligns with overall bearish 4H trend and rejection from supply.

Scenario 2 – Bullish Intraday Bounce (Only on Strong Rejection Wick)

Entry: Long near 24,520 – 24,560 demand zone if bullish engulfing / rejection wick forms.

Stop Loss: Below 24,480.

Targets:

T1: 24,720

T2: 24,880

Note: Counter-trend, keep position sizing small.

❌ No-Trade Zone

Avoid trading between 24,600 – 24,700 (current chop area).

Wait for price to either test supply (24,720–24,760) or demand (24,520–24,560) for clean entries.

✅ Summary:

Bias remains bearish.

Best trade for tomorrow: Look for short setups near 24,720–24,760 supply with targets towards 24,400–24,420. Go long only if we see a strong demand reaction near 24,520–24,560.