Daily Morning Report – 26/10/2026

Date 26.10.2026

Technical Summary Nifty CMP 22600

As we discussed in the previous report dated 19th October 26 market behaviour remained on the expected lines during the week passed by as nifty breakdown its immediate supports and drift down extreme upto 22372.6 and finally gave weekly closing of 22600.

Furthermore, a bearish candle has appeared on the Nifty weekly chart, suggesting that sellers are re-entering the market. This move has wiped out the prior week’s recovery, confirming intense selling pressure at higher levels. Consequently, if the Nifty continues its southward journey, it is likely to find immediate support around 22441 to 22281. If the index fails to defend this zone, a further slide toward 22127, and potentially 21967–21925, could unfold.

Furthermore, the recent price action forms a higher low, keeping hope alive for buyers despite intensified selling pressure over the preceding weeks. This structural defense signals intense psychological combat between bulls and bears at key demand zones. Consequently, if buyers succeed in triggering a supportive rally, the Nifty may advance toward 22757 to 22916. A decisive breakout and sustained trading above these resistance levels could push the rally further toward 23073 to 23231.

Bank nifty:

• Closed at 54,287.35, Down -638.35points (-16%).
• Immediate Support: 54,000-53,800.
• Major Support: 53700-53,600
• Immediate Resistance: 54,600–54,700
• Major Resistance: 54,800-55,100
• Bank Nifty showed greater weakness than Nifty, falling 1.16% and closing well below its opening level. A sustained move below 53,700 would increase downside Reclaiming 55,000 would be an initial sign of stabilization, although stronger confirmation would be needed above 55,450.

Open Interest Analysis:

Nifty 50: Nifty’s options data indicates a bearish bias, with the Put-Call Ratio (PCR) around 0.74. Strong call open interest near 22,800–23,000 suggests resistance, while put OI around 22,500–22,600 indicates a key support zone. A break below 22,500 may increase selling pressure, whereas a sustained move above 22,800 could signal recovery.

Bank Nifty: Bank Nifty’s PCR of around 0.87 indicates a cautious to bearish outlook. Call writing near 54,300–55,000 suggests immediate resistance, while 54,000–53,900 is an important price-support zone.

A sustained move above 55,000 may improve sentiment, while a break below 53,900 could invite further weakness.

3.  Pivot Levels: 

Classic pivot levels calculated from 23 October 2026 OHLC data.

4.  FII / DII Activity:

• FII: a net buying of ₹887.65
• DII: a net buying of ₹3,235.36cr.
• Both FIIs and DIIs were net buyers in the cash market on Friday, with domestic institutions providing stronger support. Despite these inflows, Nifty and Bank Nifty closed lower, indicating that buying was insufficient to overcome selling pressure. Friday’s cash-market data should be considered alongside the latest derivatives positioning and opening price action.

5.  International Cues:

• Asian markets: Asian equities began Monday cautiously, with Japan’s Nikkei and South Korea’s market under pressure amid geopolitical risks and concerns about global growth.
• Crude oil: Brent crude remained elevated around US$115 per barrel, after rising sharply last week. Higher oil prices are negative for India because they can increase inflationary pressure and the import
• Geopolitical tensions: Supply concerns following attacks affecting regional shipping have increased uncertainty around energy prices. Any further escalation could weigh on global risk appetite
• Indian rupee: The rupee closed near ₹94.94 per US dollar on Friday. High oil prices and global risk aversion remain potential sources of pressure on the currency.

Overall View:

Indian equities ended lower on Friday, extending the recent weakness. Bank Nifty fell more sharply than Nifty, while elevated crude prices and cautious global sentiment pose risks for Monday’s session. FII and DII cash-market buying offers some support, but the price trend remains fragile.

• Nifty: Below 22,372, watch 22,250 and 22,180. A sustained recovery above 22,800 could improve the short-term outlook.
• Bank Nifty: Below 53,940, watch 53,800 and 53,500. A sustained move above 55,000 would be an initial sign of stabilisation.

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