The Indian stock market may remain volatile on Thursday, October 22, as weak sentiment continues to weigh on investors. Buying by foreign institutional investors (FIIs) and domestic institutional investors (DIIs) failed to prevent the Nifty from falling around 470 points in the previous session.
Zee Business Managing Editor Anil Singhvi said the sharp sell-off has hurt investor confidence. Selling in midcap and smallcap stocks has also increased pressure on the broader market.
Singhvi believes weak sentiment is the biggest concern for the market, despite some positive global and domestic cues. Traders will now watch key support and resistance levels to assess the market’s next move.
Nifty outlook today: Key levels to watch
Singhvi sees the Nifty trading in a broad range of 22,600-23,200. A decisive break on either side could trigger a bigger move.
The Nifty found intraday support near 22,650 in the previous session. This level is close to its 200-week moving average (WMA) of 22,651.
However, a break below 22,625 could increase selling pressure. The next major support is near 22,200, where the index has formed a triple bottom three times in 2026.
On the upside, the 23,050-23,175 zone remains a key hurdle. The index has failed to cross this range over the past four sessions.
Here are the key Nifty levels for today:
- Support: 22,600-22,650
- Next support: 22,625
- Major support: 22,200
- Resistance: 23,050-23,175
- Trading range: 22,600-23,200
Singhvi said the market needs a strong positive trigger to recover. Until sentiment improves, selling pressure may continue.
Why is the market falling despite FII-DII buying?
Institutional buying data offered a surprise in the previous session. FIIs bought shares worth Rs 1,022 crore in the cash market. Their combined purchases across cash, index futures and stock futures stood at Rs 3,826 crore.
DIIs also bought shares worth Rs 1,614 crore for the second consecutive day.
However, the Nifty fell around 470 points. Singhvi attributed the sharp decline to the reduction of leveraged positions.
Margin calls in the futures market forced traders to cut their positions. Selling pressure also emerged in cash-market margin trading facility (MTF) positions.
Many traders were selling profitable positions and delivery-based holdings to cover losses elsewhere. This added to the pressure on midcap and smallcap stocks.
FIIs’ long positions in index futures also fell from 10.38 per cent to 9.51 per cent. This took their long positions below the 10 per cent mark for the first time in three days.
Singhvi said weak sentiment remains the biggest challenge. The market needs buyers to return before the selling pressure can ease.
GIFT Nifty weak despite positive cues
GIFT Nifty has remained under pressure despite several positive developments.
Crude oil prices are near $110 per barrel. The rupee has strengthened for eight consecutive days. India’s core-sector data has also been encouraging.
US markets recorded strong gains in the previous session. Hopes of diplomatic talks between the US and Iran have also emerged. There are also signs that Russia and Ukraine could resume talks.
Singhvi highlighted five key concerns for the market today:
- Weak investor sentiment
- Falling US stock futures
- Continued Houthi attacks in the Middle East
- India’s bond yield rising to 7.44 per cent
A sharp rise in the India VIX, which signals higher expected volatility
Any fresh negative news could add to the pressure. A strong positive trigger may be needed to improve confidence.
Bank Nifty outlook: 56,200 is the key hurdle
Bank Nifty has struggled to cross the 55,900-56,200 resistance zone. The index has remained under pressure near this range for four sessions.
Singhvi said a close above 56,200 is important for a fresh uptrend. He had also advised traders to watch the 55,850-56,050 zone for selling opportunities in the previous session.
On the downside, 53,800-54,250 is the next major support zone. This range is close to the September 29 low.
A close below 53,800 could lead to further weakness in Bank Nifty.
IT index outlook: Will the breakout sustain?
The IT index was a bright spot in the previous session. It rose 2.9 per cent, or 906 points, to close at 32,422. This was its highest closing level in seven months.
The index has formed higher highs and higher lows for eight consecutive sessions. It has also closed above its 200-day moving average for three straight sessions.
The 32,000 level was a major resistance. The index had not closed above this mark since February 20.
It finally closed above 32,150 in the previous session, signalling a potential breakout. Singhvi said traders should watch the next one or two sessions to see whether the move holds.
A sustained move above 32,000 could strengthen the technical outlook for IT stocks.
