Stock Market Outlook Today, October 22: Sensex, Nifty Likely To Remain Under Pressure As Crude Oil Tops $110

Indian stock market is likely to remain under pressure on Thursday, October 22, after benchmark indices surrendered their early gains and closed lower in the previous session. Rising crude oil prices, escalating US-Iran tensions, persistent foreign institutional investor (FII) outflows and weak global cues have weighed on investor sentiment, with selling pressure becoming particularly pronounced in mid-cap and small-cap stocks.

Stock Market Outlook Today on 22 October, 2026: Sensex, Nifty Prediction on Thursday

The Nifty 50 declined 0.34% to close at 22,811 on Wednesday, while the BSE Sensex fell 0.19% to settle at 73,706. Although both indices opened with a gap-up and initially extended their gains, the momentum faded as the session progressed. Brent crude moving above $110 a barrel added to concerns over inflation, corporate costs and India's broader economic outlook.

The weakness was more pronounced in the broader market. The Nifty Midcap 100 dropped 1.58%, while the Nifty Smallcap 100 plunged 2.37%. Sectorally, IT was the only sector to finish in positive territory, while Metal, Auto, Energy and Realty stocks were among the key laggards.

"Indian equities are likely to remain under pressure given the current fragile sentiment. On Wednesday markets witnessed a broad-based sell-off particularly in the mid- and small-cap stocks, which reflected heightened risk aversion amid elevated crude oil prices, escalating US-Iran tensions, persistent FII outflows and weak global cues," said Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd.

Nifty Outlook For October 22, 2026: What Traders Can Expect on Thursday

The Nifty 50 formed its second consecutive sizable bearish candle on Wednesday, with a lower high and a lower low indicating that the corrective trend remains in place. The index also closed below its 20-day exponential moving average (EMA), adding to the near-term technical weakness.

The benchmark started the session on a strong note and touched an intraday high of 23,120 during the first hour of trade. However, selling at higher levels erased the early gains and pushed the index down by more than 450 points from the day's high to an intraday low of 22,650. A recovery in the final hour helped the Nifty close off its lows, around the 22,800 level.

The Nifty is currently seen trading within a broad range of 22,500 to 23,150. On the downside, the 22,500-22,400 zone is an important support area. This range represents the 80% retracement level of the recent pullback from 22,180 to 23,175. A sustained move below this support zone could increase selling pressure, while a recovery above the immediate resistance levels would be needed to improve the short-term outlook.

"On the higher side key level to watch is Monday's high of 23,175, only a move above the same will signal pullback towards 23,300 and 23,500 levels in the coming sessions being the 50% retracement of the entire recent decline from 24,774 to 22,180," stated Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking, Bajaj Broking Research.

For Thursday's session, traders will therefore watch whether the Nifty can defend the 22,500-22,400 support zone or faces another round of selling. A move above 23,175 would be an important signal for a potential recovery towards 23,300 and 23,500.

Bank Nifty Prediction For Thursday

The Bank Nifty also remained under pressure on Wednesday, forming a sizable bearish candle with a lower high and a lower low for the second consecutive session. The index opened higher but failed to cross the previous session's high of 55,883. Selling intensified during the middle of the session, dragging the index more than 1,000 points from its intraday high and pushing it below the 55,000 mark.

The near-term outlook for Bank Nifty remains cautious, with the 54,700 level emerging as an important support to monitor. A sustained move below last week's low of 54,700 could open the door for further downside towards 54,000-53,500 in the coming sessions.

"Going ahead, a follow through move below last week low 54,700 will open further downside towards 54,000-53,500 levels in the coming sessions. Index has key short-term support at 53,500-54,000 being the confluence of the recent low and the key retracement of the previous major up move," said Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking Research.

On the upside, 55,300 is the immediate level to watch. A sustained move above this mark could signal a recovery towards 56,000. Until the index crosses this resistance, however, selling pressure and continued consolidation may remain key features of the market.

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