Daily Morning Report – 23/10/2026

Date 23.10.2026

Technical Summary Nifty CMP 22687.65

As discussed yesterday market behavior remained on the expected lines during the day, as continuation of bearish trend drift down the nifty up to our level of 22567 i.e. made a day low of 22554.85, small recovery from there gave closing of 22687.65.

Further a Doji candlestick pattern formed on the daily chart, typically signaling market indecision. However, given its strategic positioning near the 61.8% Fibonacci retracement level (calculated from the 22179.90 to 23175.25 range), the technical setup structurally favors the buyers. If bulls regain momentum, a decisive breakout above 22767 is expected to trigger a rally toward immediate targets of 22846 and 22925. Stronger demand and sustained buying pressure could further accelerate this momentum, opening up the possibility for Nifty to test the 23005 psychological milestone.

Furthermore, a lower-high, lower-low formation on the daily chart indicates that the imminent bearish trend remains firmly in place, with intense selling pressure at higher levels favoring the bears. Should sellers tighten their grip and force a decisive break down below 22608, Nifty is expected to continue its southward journey toward immediate downside targets of 22530 and 22450. A further acceleration in supply and aggressive short-building could intensify the sell-off, opening the gates for the index to test the 22371 support level.

Bank nifty:

• Closed at 54,925, Down -51.20 points (-09%).
• Immediate Support: 54,700-54,550.
• Major Support: 54,400-54,200
• Immediate Resistance: 55,150–55,300
• Major Resistance: 55,200-55,400
• Bank Nifty remains weak, with the index struggling to sustain higher levels. A move below 54,400 could increase selling pressure. A sustained recovery above 55,200 would be an early sign of stabilization.

Open Interest Analysis:

 Nifty 50: The 22,750–22,800 zone is the immediate resistance area to monitor for call writing, while 22,550–22,600 is the first support zone to watch for put writing. A sustained move above 22,800 accompanied by call unwinding could support a rebound toward 22,900–23,000. Conversely, a break below 22,550 with put unwinding could expose 22,500 and lower levels.

Bank Nifty: The 55,000–55,150 zone is the immediate resistance area, while 54,450–54,500 is the key near-term support zone. Fresh call writing near resistance could limit recovery, while put writing around support may help stabilise the index. A breakdown below 54,450 accompanied by put unwinding would strengthen the bearish outlook; a sustained move above 55,150 with call unwinding would improve momentum.

3.  Pivot Levels: 

Classic pivot levels calculated from 22 October 2026 OHLC data.

4.  FII / DII Activity:

• FII: a net selling of ₹3,458.70
• DII: a net buying of ₹2,891.32
• FII selling exceeded DII buying, leaving a net institutional outflow of approximately ₹567.38 Domestic institutions continue to cushion foreign selling, but persistent FII outflows remain a headwind for market sentiment.

5.  International Cues:

• US markets: On Thursday, the S&P 500 fell 1.2% and the Nasdaq declined 2.6%, while the Dow Jones edged up 0.1%. Technology shares were under pressure amid concerns about AI-related
• Crude oil: Brent crude climbed to approximately US$113.50 per barrel amid escalating Middle East tensions and supply Higher oil prices are negative for India’s inflation outlook and import bill.
• Global technology stocks: Meta’s sharp decline amid concerns about AI expenditure contributed to weakness in the Nasdaq and wider risk sentiment.

Overall View:

Indian markets extended their decline for a third consecutive session on Thursday. Rising crude oil prices, foreign institutional selling and weakness in US technology shares are likely to keep sentiment cautious, although positive opening indications from GIFT Nifty may provide some initial support.

• Nifty: Below 22,550, watch 22,500 and 22,350. Sustained trading above 22,800 may support a recovery toward 22,900.
• Bank Nifty: Below 54,450, watch 54,300 and 54,000. A sustained move above 55,200 could indicate

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