Nifty Weekly: 22,200 in Focus; IT Outperforms again

Nifty closed the week at 22,600, down 546 points (2.36%), slipping back below the 200-week average (22,673), which it had reclaimed only a week earlier. The index remains inside the long-term rising channel that has held since 2023, and the 22,200 zone, where the rising trendline meets an earlier support, is the level to watch. RSI at 37.34 has dipped back below the midline. Overhead: 22,673-22,700 (the 200-week average and Max Pain), then 23,000 and the 50-week average at 24,348. Options data (Source: Sensibull, 23 Oct, for the 27 Oct monthly expiry): PCR has dropped to 0.74 from 1.33, with Call OI (34.3 Cr) ahead of Put OI (26.97 Cr). This suggests writing is concentrated above the market. Brent crude near $117, close to the March high of about $120, is a headwind to track. IT was the outperformer. Nifty IT closed near its inverse head and shoulders neckline, with

3.06%, Wipro 2.95%, and TCS 2.64% were the top performers in the week. Holding 22,200 would keep the broader structure intact, while a close below it would put it under pressure. A long-term moving average reclaimed and lost within a week shows why closing levels matter; sector leadership can offer a counterpoint when the index weakens. Disclaimer: This is for educational purposes only and is not investment advice. Please consult your financial advisor before making any investment decisions. SEBI Registered Research Analyst — INH000025212.