Daily Morning Report – 16/10/2026

Date 16.10.2026

Technical Summary Nifty CMP 22997.35

As discussed yesterday market behavior remained on the expected lines during the day, as positive sentiments and re strike of buyers take the nifty rally extreme up to 23056.4

Further a strong bullish candle appeared on daily chart of nifty suggest continuation of positive momentum hence if nifty decisively breakout 23075 it may rally further up to 23152 to 23230. If more demand will accentuate then it may have chances to test 23306.

However for down side 22920 to 22843 may act as immediate supports for the nifty, if break through below these supports and sustain may drift down the nifty up to 22765 to 22687.

Bank nifty:

• Closed at 50, Up 494.50 points (+0.89%).
• Immediate Support: 55600-
• Major Support: 55,000–54,950.
• Immediate Resistance: 56026–
• Major Resistance:
• Bank Nifty recovered, but it remains important to monitor whether the index can sustain above 56,000–56,100. Failure near this zone could lead to consolidation or profit-booking.

Open Interest Analysis:

Nifty 50: After the strong recovery, the 23,000–23,100 area is an important zone to monitor for call writing or short covering, while 22,800–22,900 is a key area to watch for put writing or support formation. A sustained move above resistance accompanied by call unwinding could strengthen the bullish case. Conversely, fresh call writing and a break below support could bring selling pressure back.

Bank Nifty: The 56,000–56,200 zone is the immediate area to monitor for call writing and resistance, while 55,500–55,700 may act as a near-term support zone if put writing develops. A sustained breakout above 56,100 with call unwinding would improve momentum; rejection from resistance combined with fresh call writing could lead to consolidation.

3.  Pivot Levels:

Classic pivot levels calculated from 15 October 2026 OHLC data.

4.  FII / DII Activity:

• FII: a net sale of ₹5,285.37
• DII: a net purchase of ₹3,319.39
• Domestic institutional buying provided a partial cushion against substantial foreign selling. Despite the market’s strong rebound, continued FII cash-market outflows remain a risk to the sustainability of the recovery.

5.  International Cues:

• US markets: Major US indices rebounded on 15 October, with the S&P 500 up 0.3%, the Dow Jones up 1.1% and the Nasdaq up 0.1%. Corporate earnings helped offset concerns about AI-related investments.
• US inflation and interest rates: Recent inflation concerns and uncertainty about the Federal Reserve’s policy outlook may continue to influence global risk appetite.
• Dollar index: The US dollar weakened as Treasury yields declined, offering some relief to other
• Crude oil: Oil prices have eased recently, but geopolitical risks affecting energy supply remain important for India’s inflation outlook and market sentiment.
• Indian rupee: The rupee strengthened to approximately ₹95.055 per US dollar on 15 October, supported by a softer dollar and lower oil prices.
• Global technology stocks: Concerns over AI investment returns and debt exposure remain a source of volatility for global technology shares.

Overall View:

 Indian markets staged a strong recovery on 15 October, with Nifty gaining 1.66% and Bank Nifty rising 0.89%. However, continued FII cash selling and global uncertainty warrant caution.

• Nifty: A sustained move above 23,060 may extend the recovery toward 23,150–23,300. A break below 22,850 could weaken the short-term outlook.
• Bank Nifty: A sustained breakout above 56,100 may open the way toward 56,150–56,500. Failure to hold 55,500–55,700 could increase downside risk.

By ASHOK BHANARI | SEBI REGISTERED REASERCH ANALYST | REG. INH000019594