Summary:
The Nifty 50 closed at 22,600 on October 23, down 0.39%, after recovering from an intraday low of 22,372. Traders will watch this support level, resistance near 22,744–22,840, moving averages and momentum indicators on October 26.
The Nifty 50 ended Friday's session at 22,600.00, down 87.65 points or 0.39 per cent, as selling pressure continued to weigh on Indian equities. The benchmark opened at 22,742.20 and climbed to an intraday high of 22,787.25 before witnessing a sharp decline to 22,372.00. Although the index recovered more than 200 points from its day's low, it failed to reclaim important technical levels. With the broader trend still under pressure, the trading session on Monday, October 26, could prove crucial in determining whether Nifty extends its recovery or resumes its downward move.
Alongside the technical outlook, read Stocks to Watch Today, October 26, for the latest quarterly results, management guidance and corporate developments involving key companies.
Nifty Market Breadth: Declining Stocks Outnumber Gainers
Weakness across Nifty constituents reflected the cautious market sentiment on Friday. Of the 50 index stocks, 36 ended in negative territory, while only 14 managed to close higher.
Sectoral performance also remained subdued, with Nifty Metal, Nifty Consumer Durables and Nifty India Defence among the indices facing notable selling pressure. However, the recovery from lower levels indicated that buyers were willing to enter at select price points. Whether this buying interest strengthens in the coming session will be important for the market's near-term direction.
Nifty Technical Analysis: Resistance Seen at 22,744–22,840
Nifty's technical structure continues to favour sellers, with the benchmark trading below its important daily exponential moving averages (EMAs). The 22,744–22,840 range has emerged as a crucial resistance zone that could restrict any immediate recovery.
Despite Friday's rebound, the index has yet to establish a convincing reversal. A sustained move above 22,840 would signal improving buying strength and could pave the way for a further rise towards 23,076.90.
On the downside, Friday's low of 22,372 represents the first important support level. If this level fails to hold, the index could gradually move towards the next significant support at 22,221.85.
RSI Analysis: Short-Term Recovery Yet to Confirm Trend Reversal
Momentum indicators present a mixed picture across different timeframes.
The daily Relative Strength Index (RSI) stands at 42.38, suggesting that the broader market momentum remains weak. Similarly, the hourly RSI of 46.03 indicates that buyers have yet to regain control of the short-term trend.
However, the 15-minute RSI has improved to 56.65, reflecting renewed buying momentum following the recovery from Friday's intraday low.
The improvement in shorter timeframes offers some encouragement, but the daily and hourly indicators suggest that the rebound remains vulnerable unless Nifty manages to overcome its immediate resistance levels.
Key Nifty Support and Resistance Levels for October 26
| Technical level | Nifty 50 |
| Immediate resistance | 22,744 |
| Major resistance | 22,840 |
| Next upside target | 23,076.90 |
| Immediate support | 22,372 |
| Major support | 22,221.85 |
| Friday's closing level | 22,600.00 |
Nifty Outlook for Monday, October 26
Nifty enters the new trading week with a cautious technical outlook. Friday's recovery from lower levels suggests some buying interest, but the index remains below its key moving averages, while the weakness in market breadth continues to raise concerns.
For bulls, reclaiming the 22,744–22,840 resistance zone will be the immediate challenge. A decisive breakout above this range could strengthen the recovery and bring 23,076.90 into focus.
Conversely, renewed selling below 22,372 could increase downside pressure and expose the index to 22,221.85.
The key question for Monday is whether Friday's rebound develops into a sustained recovery or proves to be a temporary bounce within the prevailing downtrend. Traders should monitor the opening momentum, market breadth and price behaviour near these crucial levels before establishing fresh positions.
