Daily Morning Report – 05/10/2026

Date 05.10.2026

 Technical Summary Nifty

As we discussed in the previous report dated 28th September 26 market behavior remained on the expected lines during the week passed by as firm underlying bearish trend drifted down the nifty up to 22217.3 but small recovery on end of week give closing of 22421.95

Further a long bearish candle appeared on weekly chart of nifty after a long decline and right near a support zone established earlier in 2 April 2026 where historical buying interest were entered signals an exhaustion move, RSI into deep oversold zone on daily chart and shows positive divergence. These all highly attract pull back rally for nifty up to 22563 to 22703. If break through above these resistances and sustain may push the nifty rally further up to 22843 to 22983.

Furthermore this candle after a long decline and near the support zone pressing directly into a critical long-term structural floor, indicts breakdown attempt by sellers, in recent past in spite of positive divergence and deep oversold RSI on daily chart nifty continue with its bearish trend is classic example of strong bearishness. This continuation of prevailing bearish trend may find immediate support around 22281 to 22141. If nifty failed to defend these supports then it may slide further up to 22000 to 21923-21861.

Bank nifty:

• Close: 54,450.75 on 1 October, down 33%; intraday range was 54,066.60–55,091.45.
• Immediate Support: 54,150–53900. A breakdown may extend weakness towards 53,400
• Major Support: 53,500.
• Immediate Resistance: 54,750–55,000.
• Major Resistance: 55,700.
• Bias: Cautious below 55,100; banking stocks showed relative resilience versus the broader market, but confirmation is needed.

Open Interest Analysis:

NIFTY: The latest available option-chain snapshot for the 6 October expiry showed Nifty near 22,421.95, with total Call OI of approximately 19.49 crore against Put OI of 13.35 crore, giving a PCR of about 0.69. This call-heavy positioning indicates overhead supply and a cautious-to-bearish setup. Traders should watch Put OI around 22,200–22,400 for support and Call OI around 22,500–22,800 for resistance.

BANK NIFTY: The latest available Bank Nifty chain for the 27 October expiry showed total Call OI of about

4.67 lakh lots versus Put OI of 4.03 lakh lots, with PCR near 0.86. The relatively balanced PCR suggests less one-sided positioning than in Nifty, although Call OI remains higher overall. The 54,000 area is an important downside reference, while 55,000–55,100 is the first overhead zone to monitor.

3.  Pivot Levels

Classic pivot levels calculated from Friday, 01,Octorber 2026 OHLC data.

4.  FII / DII Activity

 FII: a net sale of ₹9,484

• DII: a net purchase of ₹10,042
• Strong DII buying more than offset the reported FII cash selling on 1 October, though the market still closed lower.
• FII index-futures positioning remained net short, reinforcing the need to watch for short covering versus fresh short build-up.

5.  International Cues:

• Global Bond Yields: The global bond sell-off and elevated US Treasury yields remain headwinds for risk
• Crude Oil: Crude prices have been volatile amid Middle East supply concerns; higher oil is a risk for India’s import bill and inflation outlook.
• Currency: The rupee remains under pressure amid foreign outflows, crude prices and dollar
• Foreign Flows: Reuters reported heavy foreign selling through September and a bearish derivatives shift, with increased FII index-futures shorts.
• Macro Events: US rate expectations, inflation data and geopolitical headlines remain key external drivers for the week.

Overall Market View:

The market enters the week with a weak broader structure. Nifty needs to defend the 22,350–22,200 support band and reclaim 22,550–22,610 to improve its near-term tone. Bank Nifty is relatively more resilient but must sustain above 55,100 for a stronger recovery signal. The report uses 1 October as the latest available trading session; verify pre-open indications and fresh OI before acting.

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