Nifty falls 157 points as inflation hits sentiment

Indian equity markets closed lower on Monday, October 12, 2026, after September retail inflation rose to 5.54%, increasing concerns about price pressures and interest rates. Market snapshot Nifty 50: 22,363.35, down 0.70%. Sensex: 71,924.68, down 0.76%. Bank Nifty: 54,918.00, down 0.61%. India VIX: 15.25, up 6.05%. Brent crude: $106.10 per barrel, up 1.32%. Market drivers: Nifty reversed its early gains and closed near the day's low. FMCG fell 1.49%, IT declined 1.28%, and PSU Banks lost 0.98%. Auto gained 0.69%, while Realty advanced 0.52%. Nifty breadth weakened sharply, with 41 constituents declining and only 9 advancing. Overall NSE breadth was nearly balanced at 1,795 advances against 1,796 declines. Technical outlook: Nifty remains below its 20-day average of 22,891.83 and 50-day average of 23,393.55. RSI at 34 indicates weak momentum. Immediate support lies at 22,228 and 22,093, while resistance is at 22,575 and 22,786. Derivatives positioning: Nifty PCR stood at 0.65, with maximum put open interest at 22,000 and maximum call open interest at 22,600. This indicates a cautious derivatives setup, though open interest alone cannot confirm market direction. What to watch next: Nifty expiry on October 13, upcoming corporate earnings, further inflation signals and crude oil movements. Market view: The combination of elevated inflation, rising crude prices and higher volatility keeps the near-term outlook cautious. A sustained move above 22,575 is needed to improve the immediate technical picture. Learning outcome: Inflation data, volatility, market breadth and derivatives positioning should be assessed together rather than relying on a single indicator to determine market direction.