I believe the mobipocket format does not support any kind of nesting, just as it does not support CSS. It just has a few supported tags and attributes, so:
For a <P> element the WIDTH attribute is interpreted as first-line indent.
For a <BLOCKQUOTE> element the WIDTH attribute is interpreted as a left margin.
If you want both a left margin and a first-line indent (negative or positive), I'm afraid that's not possible in mobipocket.
But you could add some vertical space between entries, or put some kind of bullet for each one.
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