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Below the Quote on Market Commentary (closing) for 26th October 2026 by Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking

Market Closing Commentary

Benchmark indices staged a strong recovery from lower levels on 26 October, snapping their four-day losing streak. However, volatility remained elevated ahead of tomorrow’s monthly expiry, amid elevated crude oil prices, geopolitical tensions and uncertainty surrounding the US Federal Reserve’s policy decision. Despite the recovery, market sentiment remained cautious.

At close, the Sensex gained 482.92 points (0.66%) to settle at 73,606.75, while the Nifty advanced 153.20 points (0.68%) to close at 22,753.20.

On the sectoral front, Nifty Metal, Pharma, Healthcare and Oil & Gas traded in positive territory, while Nifty Media and Consumer Durables remained under pressure. Most sectoral indices ended the session in the green.

Broader markets outperformed the benchmark indices, with the Nifty Midcap index rising 1.19% and the Nifty Smallcap index gaining 1.38%, reflecting broader-based buying interest across the market.

Nifty Outlook

Index formed a sizable bullish candle which remained enclosed inside previous session price range signaling consolidation with positive bias. Nifty started the session on a negative note and dragged lower in the first hour of trade to form an intraday low of 22387. However, buying demand near last week low saw the index recover its entire decline and closed 350 points above the days low around the 22750 levels.

Nifty on Monday’s session rebounded from the 80% retracement of its previous six sessions up move from 22180 to 23,175. Going ahead, follow through strength above 20 days EMA placed at 22,820 will signal further pullback towards the key resistance area of 23,100-23,200 being the confluence of last week high and 50 days EMA.

Failure to move above 22,820 will signal extension of the last two sessions consolidation in the range of 22,370-22,820.

Bank Nifty Outlook

Bank Nifty formed a bullish hammer like candle highlighting buying demand at lower levels. The index in the process snapped its four-session decline and closed around the 54,300 levels.

Going ahead, a follow through buying momentum above Monday’s high 54,400 will open pullback towards 55,000 levels in the coming sessions.

While weakness below Monday’s low 53,777 will signal extension of decline towards key short-term support at 53,500-53,000 being the confluence of the trendline support joining previous major lows and key retracement of the previous major up move.

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