Stock market prediction for Monday Oct 26: Sensex, Nifty levels, top stocks to watch - Will bulls dance again?
The Nifty 50 fell nearly 2% last week as geopolitical tensions and crude oil volatility weighed on markets, taking year-to-date losses to 13.56%. Analysts see support near 22,300 and resistance at 22,850–22,900. Infosys, Kotak Mahindra Bank and Reliance Industries will be among stocks in focus.
Stock market outlook this week: The Nifty 50 fell nearly 2% last week, snapping its two-week winning streak as geopolitical tensions and volatility in Brent crude oil prices kept investors on edge. The decline took the index’s year-to-date (YTD) losses to nearly 13.56%, putting it on track for its worst annual performance in over a decade.
Nifty 50 closed 0.39% lower at 22,600 points on Friday, with Nifty Bank declining 1.10%. Nifty Midcap Select fell close to 2.20% on Friday. BSE Sensex was down 0.17% at 73,123.83 points. As we head for a new week, let’s understand whether bulls will stage a comeback on Dalal Street or bears will continue to drag Nifty and Sensex lower.
The Nifty 50 declined nearly 2.36% last week and moved closer to its 200 weeks exponential moving average (EMA). The overall technical structure remains weak, with selling pressure visible across sectors except IT, highlighted Dr. Ravi Singh, Chief Research Officer from Master Capital Services Ltd.
“Immediate support is placed near 22300, and a decisive breakdown below this zone could trigger further selling towards 22000, a key psychological support level. On the upside, the 22850-22900 zone remains a crucial resistance area, coinciding with the 21 days EMA. As long as the index trades below this hurdle, the strategy remains sell on rise, with recovery attempts facing sustained selling pressure,” explained Ravi.
Nifty 50 has formed a bearish candle with a long lower shadow indicating continuation of the corrective decline for the fourth session in a row.
The benchmark equity index has retraced 80% of its previous six sessions up move, highlighted Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking, adding that a follow through weakness below 22,372 will open downside towards the current month low of 22,180.
“Index holding above last week's low of 22,372 will lead to consolidation in the range of 22,370-22,850 in the coming week. On the higher side immediate resistance is placed at 22,850 levels being the presence of 20 days EMA, while previous week high of 23,175 is likely to act as major hurdle in the coming week,” explained Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking.
Infosys share price will remain in focus on Monday, October 26, as the IT services giant announced its Q2FY27 results on Friday. The Bengaluru-headquartered IT services firm reported a net profit of ₹ 7,823 crore in Q2FY27, which is 6.23% higher than ₹ 7,364 crore reported in the year-ago period. The stock closed marginally higher at ₹ 1154.50 per share on BSE on Friday.
Kotak Mahindra Bank will also remain in focus after the bank announced a 26% jump in its consolidated net profit for the September quarter at ₹ 5,645 crore. The bank stock closed 1.70% lower at ₹ 430.10 per share on Friday.
Ather Energy, Tata Consumer Products, ITC Hotels, Dalmia Bharat , Bank of Maharashtra , Dalmia Bharat, APL Apollo Tubes, etc will remain in focus due to their Q2FY27 results scheduled for Monday, October 26.
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