BankNifty Market Structure & Trade Plan for 31st July

BankNifty Market Structure – 31st July

🔍 Higher Timeframe (4H)

Trend: Bearish bias; recent attempt at recovery faced resistance.

Key Resistance Zone: 56,200 – 56,300 (tested, rejection seen).

Support Zone: 55,800 – 55,900 (strong demand zone, buyers defended last time).

Price is currently trading around 56,100, just below resistance.

⏰ 1H Chart

Resistance:

56,200 – 56,300 (overhead supply zone, multiple rejections).

56,550 – 56,600 (next supply above).

Support:

55,800 – 55,900 (demand zone; defended earlier).

Observation: Consolidation under resistance with wicks rejecting upside attempts.

⏳ 15M Chart

Short-Term Resistance: 56,150 – 56,250

Short-Term Support: 55,900 – 55,950

Structure: Minor lower highs forming; indicates sellers are active at each bounce.

If price sustains below 56,100, more downside likely.

🎯 Trade Plan for 31st July

🔻 Bearish Scenario (Preferred)

Short Entry Zone: 56,200 – 56,250 (on rejection signs / bearish wick).

Target 1: 55,950

Target 2: 55,800

Stop Loss: Above 56,350

Rationale: Repeated rejection at 56,200 zone + bearish market structure across HTFs.

🔺 Bullish Scenario (Only if breakout occurs)

Buy Trigger: Sustained close above 56,350 with volume.

Target 1: 56,550

Target 2: 56,750 – 56,800

Stop Loss: Below 56,100

Rationale: Breakout above resistance will invalidate current supply zone, opening fresh upside.

📌 Key Action Areas

Sell Zone: 56,200 – 56,300

Demand Zone: 55,800 – 55,900

Breakout Watch: 56,350+ for upside continuation

✅ Summary:
For tomorrow, shorting BankNifty near 56,200 – 56,300 with targets towards 55,950 – 55,800 is the higher probability play. A confirmed breakout above 56,350 will flip bias to bullish.