nginx redirect TLD to TLD with virtual folder (example.com => example.com/test)

Question

I'm running nginx and in the config file I need to always have the domain example.com redirect to example.com/test. I tried various methods for achieving this but I always got a redirect error.

EDIT: It's worth mentioning that I only want example.com to redirect to example.com/test. I don't want example.com/something to have /test in the url.

What is the correct way to do this?

This is a snippet of my current nginx.conf:

server {
  server_name example.com www.example.com;
  location / {
    rewrite ^.+ /test permanent;
  }
}

server {
  listen 80;
  server_name www.example.com example.com;
  location / {
    root /var/www/apps/example/current/public;
    passenger_enabled on;
    rails_env production;
  }
}

Answer 1

I do not remember, but somehow the right way:

server {
    server_name  example.com;
    rewrite ^/$ http://www.example.com/test   permanent;
}

Answer 2

samarudge is right - you should have only one server block.
Try putting root, passenger_enabled and rails_env right under server (or even http)

server {
  listen 80;
  server_name www.example.com example.com;
  root /var/www/apps/example/current/public;
  passenger_enabled on;
  rails_env production;

  location / {
      rewrite ^.+ /test permanent;
  }
}