Nifty 50 Outlook for 23rd October 2026

After demonstrating a corrective rise for a few days, NIFTY 50 started to exhibit a fresh downtrend with the formation of a lower-high and lower-low structure.  On daily charts, the index is now consistently sustaining below all the major EMAs, with negative crossovers between them. The market breadth has been deteriorating for some weeks now; however, it's still far from the extreme readings. The downtrend continuation is expected to happen in the near term, with support held near 22425, and a fresh resistance zone has been formed near 22850. As the larger direction for the index is down, one should take selling trades near resistance areas.

As far as the derivatives positioning is concerned, positions unwinding have been seen from both CE & PE writers; however, PE writers have shifted their positions at lower strikes, while CE writers still chose to hold onto the majority of their positions. A sideways price action is expected to be witnessed based on the positioning from the traders.

Key Resistances: 22850 and 23000

Key Supports: 22590 and 22480

Strategy: Sell Nifty (Spot level) on a rise around 22850 with a stop-loss of 22950, targeting 22700

ADITYA THUKRAL, PROPRIETOR, AT RESEARCH AND RISK MANAGERS

SEBI Registered Research Analyst INH000013794

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