Daily Morning Report – 21/10/2026

Date 21.10.2026

Technical Summary Nifty CMP 22888.95

As discussed yesterday market behavior remained on the expected lines during the day, as sellers re strike and succeed to drift down the nifty up to our level of 22847 i.e. nifty made a day low of 22845.

Further A long bearish candle has appeared on the daily chart of the Nifty index, signaling a decisive counter-attack by sellers. This aggressive supply has restricted buyers from making further advances, leading to an imminent shift toward a bearish market sentiment. Hence if nifty decisively breakdown 22813 may slide further up to 22737 to 22661. If more supply will accentuate then it may have chances to test 22585.

However for upside 22965 to 23041 may act as immediate resistance for nifty, A successful breakout above this resistance wall will clear the path for Nifty to march back up to challenge its recent peak rejection levels, targeting the 23,117 to 23,193 price band.

Bank nifty:

• Closed at 55,488.10, Down 90 points (-0.64%).
• Immediate Support: 55,350-
• Major Support: 55,100-
• Immediate Resistance: 55,650–56,700
• Major Resistance: 56200-56300
• Technical view: Bank Nifty also closed lower, with private banking stocks contributing to market weakness. The index needs to reclaim 55,700–56,000 to improve its near-term outlook. A sustained move below 55,300 would increase downside risk.

Open Interest Analysis:

Nifty 50: The 22,950–23,000 zone is the first area to monitor for resistance, while 22,800–22,850 is the immediate support zone. Watch the 23,000 and 23,200 strikes for fresh call writing or call unwinding, and 22,800 and 22,700 for put writing or put unwinding. A sustained move above 23,000 with call unwinding could support a recovery; fresh call writing and a breakdown below 22,800 would strengthen the bearish case.

Bank Nifty: The 55,800–56,000 area is the key near-term resistance zone, while 55,300–55,500 is the immediate support area. Monitor the 55,800 and 56,000 strikes for call writing and the 55,500 and 55,000 strikes for put writing. A breakout above 56,000 accompanied by call unwinding would improve sentiment, whereas a break below 55,300 could lead to further weakness.

3.  Pivot Levels:

Classic pivot levels calculated from 19 October 2026 OHLC data.

4.  FII / DII Activity:

• FII: a net buying of ₹1,148.64
• DII: a net selling of ₹3,201.19
• Domestic institutional buying helped cushion the market against foreign selling. However, FII selling in cash equities and index derivatives remains a risk to market Institutional flows should be monitored alongside price action rather than treated as standalone trading signals.

5.  International Cues:

• US markets: On 20 October, the Dow Jones gained approximately 94%, the S&P 500 rose 0.4%, and the Nasdaq advanced 0.2%, supported by corporate earnings and easing Treasury yields.
• Crude oil: Brent crude rose to around US$109.64 per barrel in early Asian trading on 21 October, amid renewed concerns over shipping and supply disruptions in the Middle Higher oil prices are a risk for India’s inflation and import bill.
• Geopolitical risk: Reports of attacks on vessels near the Strait of Hormuz and wider regional shipping concerns may increase volatility in crude prices.
• US bond yields: The 10-year US Treasury yield eased to around 5.096% in the latest report, providing some support to global equities, although interest-rate uncertainty remains
• Global technology stocks: Investors continue to assess whether heavy AI infrastructure spending will deliver adequate returns, leaving technology shares vulnerable to earnings-related
• Foreign flows into India: Foreign portfolio investors had withdrawn approximately ₹52,100 crore from Indian equities during October up to the report published on 19 October, reflecting concerns over oil prices, US yields and currency movements.

Overall View:

 Indian equities ended sharply lower on Monday, with Nifty falling 1.11% and Bank Nifty declining 0.64%. The domestic market was closed on Tuesday, so investors return to trading after a one-day break. Gains on Wall Street offer some support, but rising crude oil prices and geopolitical risks remain negative factors.

• Nifty: Below 22,800, watch 22,700 and 22,640. A sustained move above 23,000 could trigger a recovery toward 23,100.
• Bank Nifty: Below 55,300, watch 55,200 and 55,000. A sustained move above 55,800 could improve momentum toward 56,000.

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