SENSEX | Rejected For −4.10% Exactly As CalledBSE Sensex IndexBSE_DLY:SENSEXBigBelugaSENSEX | Rejected For −4.10% Exactly As Called By analyzing the #SENSEX (S&P BSE Sensex Index) chart on the 4H timeframe, we can see that the roadmap we have been running for two months is still tracking, stage by stage. This is the third instalment of the same idea, and every step has printed in sequence. Back in June we called the reversal while the index was still bleeding — the reaction off the daily Order Block, the double MSS, and the shift from bearish to bullish. Then on 7 July we followed up when price reached the liquidity and tapped into the Flip Zone, naming that the decision area and giving two scenarios for what would happen there: Scenario 1 delivered. Price rejected from the Flip Zone and sold off −4.10% into the correction — precisely the move we said that zone would produce. It has since based and turned back up, and it is now returning for a second attempt. ⏱️ 4H Timeframe The higher-timeframe foundation is unchanged, and it is worth restating because everything else rests on it. The index had turned bearish with a bearish BOS, and it stayed that way until price arrived at the strong Order Block (71,486.26 – 73,083.06). That is where the selling stopped. Price reacted hard off that block, printed an MSS, corrected inside a descending channel, then broke that channel to the upside and printed a second MSS. A double MSS off a major order block is about the cleanest reversal signature this market gives, and that is what we published on. From there price rallied into the liquidity exactly as mapped, reaching the BSL at 79,361.40 and pressing into the Flip Zone (78,417.83 – 80,268.67) — the region where sellers had previously taken control. And it did exactly what a flip zone is supposed to do. Price was rejected and dropped −4.10% into a corrective leg, shaking out everyone who chased the rally into resistance. That was the risk we flagged in the 7 July note, and it materialised. What matters just as much is how it fell: this was a controlled correction, not a structural break. No lows were violated, the Order Block was never threatened, and buyers stepped back in to build a base. Price is now trading around 78,034.57, pressing straight back toward the underside of the zone for a second attempt. Measured from the top of the Order Block at 73,083.06, the index remains roughly +6.8% higher since the reversal signature formed — so the correction cost some ground, but it did not undo the trade. 🎯 The Bias Scenario A — the base case (continuation). In my view this second attempt carries better odds than the first, and the reason is mechanical rather than hopeful. The first approach arrived at the Flip Zone exhausted, straight off an extended rally, with no base beneath it — which is exactly why it produced a −4.10% rejection. This approach is different: price has spent weeks building structure beneath the zone, and it is arriving with support underneath rather than air. The confirmation I want is simple and non-negotiable: sustained closes above the Flip Zone top at 80,268.67. On that, the Supply Zone at 85,059.08 – 85,875.62 becomes the next major objective, with the BSL at 79,361.40 sitting inside the zone as the magnet along the way. Scenario B — the second rejection. I have to respect this equally, because a zone that has already paid out −4.10% once is entirely capable of doing it again. If price pushes back into the Flip Zone and fails to close above 80,268.67, the cleaner read is another corrective leg lower to retest the structure beneath before any further upside attempt. Disappointing, but not thesis-breaking. The line that genuinely ends this idea sits far lower, and I'll name it plainly: the entire bullish reversal is built on the Order Block at 71,486.26 – 73,083.06. A decisive close beneath 71,486.26 would mean that block failed, the double MSS was noise, and the original bearish structure has resumed. Until that candle prints, every pullback in between — including the −4.10% one — is a correction inside a reversal, not the reversal failing. And the rule that has governed this idea since the first post still applies: a break is a candle close, not a wick. The Flip Zone is precisely the kind of level that spikes through and reverses to trap the impatient. Let it close. 📰 Fundamental Backdrop The backdrop underneath this second attempt is meaningfully stronger than it was during the first one, which is part of why I lean the way I do. July was a good month for Indian equities. The Sensex gained roughly 2.1% and the Nifty about 2.2%, marking the first back-to-back monthly gains of 2026 after June also closed green. The standout was technology: the Nifty IT index surged around 16.8% in July, its best month since July 2020, as the unwinding of the global AI trade pushed capital out of other emerging markets and into Indian IT names. Encouraging June-quarter earnings did the rest, and easing crude oil prices have taken pressure off imported inflation, corporate margins and India's external account simultaneously. On top of that, the reported reduction in US tariffs on Indian goods to 18% from 50% is material relief for exporters and removes a real overhang that had been weighing on sentiment. The honest counterweight is that foreign flows remain two-way rather than one-directional. Foreign investors returned as net buyers across the month, but individual sessions late in July still printed net outflows against domestic institutional buying — so this is not yet a clean, sustained bid. Geopolitical tension and oil supply concerns have also not disappeared; they have simply moved to the background. And there is a binary sitting directly in front of us: the RBI's Monetary Policy Committee meets from 3 August with the decision due 5 August. The commentary on inflation, growth and the rate path is the single biggest near-term swing factor, and it lands in the exact window where price is testing the Flip Zone for the second time. Alongside it, the remaining Q1 FY27 results from index heavyweights continue to roll in. The fundamental calendar is about to decide whether this zone breaks or holds — so size accordingly and let the level confirm before committing. This analysis will be updated as the market evolves. If this breakdown added value, drop a like 👍 and a comment 💬 to support the work — and share where you see the Sensex heading next! Best Regards, BigBeluga 🐳