Nginx wordpress fancy URL or permalink fixing

If your wordpress is installed in the root directory i.e. yourdomain.com, you can use the following directives-

location / {
try_files $uri $uri/ /index.php?$args;
}

# Add trailing slash to */wp-admin requests.
rewrite /wp-admin$ $scheme://$host$uri/ permanent;

location ~* \.(jpg|jpeg|png|gif|css|js|ico)$ {
expires max;
log_not_found off;
}

Or if your wordpress is installed inside a sub-directory the directive will be a bit different-

location /test/site1 {
try_files $uri $uri/ /test/site1/index.php?$args;
}

# Add trailing slash to */wp-admin requests.
rewrite /test/site1/wp-admin$ $scheme://$host$uri/ permanent;