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With the US bond yield rising and the situation regarding the conflict between Israel and Hamas getting worse, the bears continued their onslaught on Dalal Street into the sixth session on October 26. A smart recovery was seen by the smallcap index, but it closed lower despite the majority of indices being down more than 1%. If there is a bounce back, the immediate resistance is 19,300-19220. Both its daily trend strength indicators have been trending well within their respective negative reading viz. ADX climbing further higher towards 33 while RSI falling further below 32 does not support any immediate reversal in trend strength. Options data saw a further shift in range towards its lower side with key highest put OI bound at 18800 followed by 18500 while 19000 saw heavy call writing zone which should act as a strong hurdle for the day. Expect the index to oscillate lower within the broader range shifting lower towards of 19300-18600 while intermediate range stands at 19000-18800 for the day. Until we don’t see the index registering any reversal move or sustaining above 19300 its ideal to expect oscillation mode to continue with a negative bias. For the day expect further pressure to aggravate below 18800 support pivots below which the index could witness an extended move towards 18600 while 19300 could act as a resistance zone going forward into the new series

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