Stock Market Outlook Today, October 26: Sensex, Nifty Likely to Remain Under Pressure as Crude Oil Tops $114

The Indian stock market is likely to remain under pressure on Monday, October 26, as rising crude oil prices and escalating geopolitical tensions weigh on investor sentiment. Persistent selling in broader markets, particularly mid-cap and small-cap stocks, has added to concerns, while inflation risks stemming from higher oil prices could keep investors cautious in the coming session.

Stock Market Outlook Today on 26 October 2026: Sensex, Nifty Prediction for Monday

"Indian markets are likely to remain weak amid heightened geopolitical tensions and rising crude oil prices, which are fuelling inflation concerns. Crude oil prices rose above US$114/bbl (+1.1%) and hitting a five-month high amid fears of Middle East supply disruptions and concerns over Saudi oil facilities," said Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd.

In the previous trading session, the Nifty 50 declined 0.39% to close at 22,600, while the Sensex fell 0.17% to settle at 73,123. Selling pressure was widespread, with all sectoral indices ending in negative territory. Metal, Realty and PSU Bank stocks were among the major laggards, while Consumption and IT stocks showed relative resilience, recording comparatively smaller losses.

Nifty Prediction Today: Check Technical Outlook for 26 October 2026

According to Bajaj Broking Research, the Nifty has extended its corrective decline for the fourth consecutive session, forming a bearish candle with a long lower shadow. The index continued to register a lower high and a lower low, signalling that the near-term downward bias remains intact.

The benchmark opened on a positive note but witnessed sharp selling after the opening, dragging it below the previous session's low to an intraday low of 22,372. Buying at lower levels helped the index recover from the day's low and close at 22,600.

The recent correction has also erased a substantial part of the market's previous gains. Nifty has retraced around 80% of its previous six-session advance from 22,180 to 23,175 over the last four sessions, highlighting the strength of the recent selling pressure.

"Going ahead, follow through weakness below last week low 22,372 will open downside towards the current month low of 22,180. Index holding above last week low of 22,372 will lead to consolidation in the range of 22,370-22,850 in the coming week," said Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking.

For Monday's session, 22,372 is an important support level to watch. A sustained fall below this mark could expose the index to further weakness towards 22,180, the current month's low. On the upside, 22,850 is the immediate resistance, supported by the presence of the 20-day exponential moving average (EMA). The previous week's high of 23,175 is expected to act as a major hurdle if the market attempts a stronger recovery.

Bank Nifty Prediction For Monday

The Bank Nifty also remained under pressure, forming a sizeable bearish candle and extending its corrective decline for the fourth consecutive session. The index continued to form lower highs and lower lows, reflecting a weak short-term trend, and closed around the 54,300 level.

According to Bajaj Broking Research, the banking index needs to hold above key support levels to prevent a deeper correction. A breakdown below 54,000 could intensify selling pressure, while a recovery above immediate resistance would be needed to improve the near-term outlook.

"Going ahead, a follow through weakness below 54,000 will open further downside towards 53,500 and 53,100 levels in the coming sessions. Index has 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. On the higher side only a move above 55,150 will signal pullback towards 56,000 levels in the coming sessions," said Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking.

For Monday, 54,000 will be the first crucial level to monitor for Bank Nifty. If the index slips below this mark, the next downside levels are 53,500 and 53,100. The broader support zone is placed between 53,500 and 53,000. On the upside, a move above 55,150 would be required to signal a potential recovery towards 56,000.

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