Nifty 50 Outlook for 26 October 2026
An impulsive 5-wave structure appears to have completed with yesterday's NIFTY 50 price action. A 3-wave corrective move is expected to emerge over the next couple of trading sessions before another violent downside leg resumes. However, the structure could change to a double three corrective structure as well, where the fall would be delayed by a few more trading sessions. The deteriorating market breadth, along with prices sustaining below all the major EMAs, signals that the weakness in prices is here to stay for a while. In this scenario, the sell-on-rise should remain the strategy, and the strategy should not change unless we see some bottoming-out signs.
As far as the positioning in the derivatives segment is concerned, long positions unwinding were seen along with the creation of short positions. Traders are anticipating the continuation of the downtrend.
Key Resistances: 22650 and 22810
Key Supports: 22425 and 22290
Strategy: Sell Nifty (Spot level) on a rise around 22750 with a stop-loss of 22850, targeting 22600
ADITYA THUKRAL, PROPRIETOR, AT RESEARCH AND RISK MANAGERS
SEBI Registered Research Analyst INH000013794
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