Nifty 50 Outlook for 21 October 2026

NIFTY 50 broke important support levels of 22910 and triggered multiple bearish signals, which are still early for the continuation of the larger downtrend. The index created a fresh lower low; it closed below the 20-day EMA & previous day's low and created a fresh resistance zone of 22970 to 23040. These are some of the bearish signals that were exhibited in the previous trading session. However, the index is holding above the 9-day and 12-day EMAs, reading near 22800, and is a hope for bulls. A break below 22800 could intensify selling in the large-cap index and could result in a larger downtrend continuation.

As far as the derivatives positioning is concerned, traders were seen creating aggressive short positions while long positions were created cautiously, owing to the expectation of theta decay over the holiday.

Key Resistances: 23040 and 23150
Key Supports: 22800 and 22720

Strategy: Sell Nifty (Spot level) on a rise around 23035 with a stop-loss of 23130, targeting 22885.

ADITYA THUKRAL, PROPRIETOR, AT RESEARCH AND RISK MANAGERS
SEBI Registered Research Analyst INH000013794

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