Daily Morning Report – 22/10/2026

Date 22.10.2026

Technical Summary Nifty CMP 22811.35

As discussed yesterday market behavior remained on the expected lines during the day, as counter attack of sellers and change of sentiments to bearish drift down the nifty near to our level of 22661 (day low of 22649.9) after respecting the our resistance of 23117 i.e. made a day High of 23120.9, finally end the day with closing of 22811.35

Further a bearish candle appeared on daily chart of nifty with lower wick, indicating a continuation of the prevailing bearish sentiment despite the late-session recovery. If this negative momentum persists, a decisive break down below the 22730 support level could cause Nifty to slide further toward 22648 and 22567. Moreover, if selling pressure and supply accentuate significantly, the index is highly vulnerable to extending its decline and testing the structural support at 22485.

Furthermore the daily candlestick features a prominent lower wick that successfully tested the previous breakout level from 15 October 2026, followed by a minor recovery during the late-market session. This price action suggests that if buyers can sustain supportive demand, a decisive breakout above 22893 is likely to trigger an upside rally toward 22974 and 23056. Furthermore, if buying momentum accentuates significantly, the index has a strong probability of extending its gains to test the 23137 resistance level.

Bank nifty:

• Closed at 90, Down 511.20 points (-0.92%).
• Immediate Support: 54,650-54,500.
• Major Support: 54000-53800
• Immediate Resistance: 55,300–56,450
• Major Resistance: 56200-56300
• Bank Nifty underperformed Nifty, falling 92%. The sharp decline and weak close suggest selling pressure remains elevated. A sustained recovery above 55,300 would be an early improvement; failure to hold 54,700 could increase downside risk.

Open Interest Analysis:

Nifty 50: The 22,900–23,000 zone is the first resistance area to monitor for call writing or short covering, while 22,600–22,700 is the immediate support zone to watch for put writing. If Nifty sustains below 22,600 and put positions unwind, selling pressure may increase toward 22,500. Conversely, a sustained recovery above 23,000 accompanied by call unwinding could support a rebound.

Bank Nifty: The 55,200–55,500 zone is the immediate resistance area, while 54,700–54,500 is the key support zone to monitor. Fresh call writing near resistance could cap any recovery, while put writing near support may help stabilize the index. A break below 54,700 accompanied by put unwinding would be a bearish signal; a move above 55,500 with call unwinding would improve the outlook.

3.  Pivot Levels:

Classic pivot levels calculated from 21 October 2026 OHLC data.

4.  FII / DII Activity:

• FII: a net buying of ₹1,022.32
• DII: a net buying of ₹1,614.32
• Both FIIs and DIIs were net buyers on Wednesday, providing some support to domestic However, the benchmark indices still closed lower, suggesting that buying flows were insufficient to overcome selling pressure. Rising crude prices and global uncertainty remain important risks.

5.  International Cues:

• US markets: US equities finished higher on Tuesday, supported by technology shares, although investors remained cautious about AI-related spending and financing costs.
• Crude oil: Brent crude climbed above US$110 per barrel amid concerns about Middle East tensions and possible supply disruptions. This is a significant negative factor for India because of its dependence on imported oil
• Inflation and interest rates: Rising oil prices could add to domestic inflation risks, while global interest-rate uncertainty may influence foreign investment flows and equity valuations.
• Global technology stocks: Investors continue to assess the returns on heavy AI infrastructure investments, leaving technology stocks vulnerable to earnings disappointments and changes in risk appetite

Overall View: 

Indian equities weakened on Wednesday, with Nifty declining 0.34% and Bank Nifty falling 0.92%. Both indices faced selling pressure despite net buying by domestic and foreign institutions. The sharp rise in crude oil prices and geopolitical uncertainty remain key concerns for the next session.

• Nifty: Below 22,600, watch 22,500 and 22,350. A sustained recovery above 23,000 could improve the short-term outlook.
• Bank Nifty: Below 54,700, watch 54,500 and 54,200. A sustained move above 55,500 would indicate improving momentum.

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