The Prime Daily: 21 October 2026

U.S. stocks ended mixed amid ongoing corporate earnings and U.S.–Iran diplomatic headlines as investors rotated out of technology shares into industrials and other traditional sectors. The Dow Jones Industrial Average surged over 500 points, or more than 1%, to around 52,496, while the S&P 500 rose about 0.28% to 7,712. The Nasdaq Composite was marginally lower at 26,424.

Industrial and safety-products maker 3M boosted the Dow Jones, jumping over 5% after better-than-expected earnings and a full-year guidance upgrade. Aerospace and defence major Northrop Grumman also gained more than 4% after earnings beat.

U.S. Treasury yields eased after weaker-than-expected housing data. Housing starts fell 5.2% in September, while pending home sales dropped 7.3%. The 10-year U.S. Treasury yield hovered around 5.11% as investors scaled back expectations of a Fed rate hike later this month.

Oil prices pulled back from earlier gains yesterday as markets weighed diplomatic efforts to ease Middle East supply disruptions. WTI crude fell 1.8% to settle at $101.79 per barrel, while Brent declined 0.7% to $108.79. However, oil prices rose again today as traders tracked Red Sea shipping risks and threats to Saudi oil infrastructure, with Brent trading near $110 per barrel.

Asian markets traded higher, supported by renewed optimism around artificial intelligence-related investments and improving geopolitical sentiment.

Coming to our markets, Indian benchmark indices snapped their two-session winning streak on Monday. The Nifty fell 257 points to close at 22,888 after profit booking. After a muted start, the index briefly moved above Friday’s high but failed to hold gains, eventually slipping 330 points from the intraday peak to finish near the day’s low. Broader markets mirrored the weakness in the benchmark, with the Nifty Midcap 100 and Smallcap 100 indices declining more than 1% each. Market breadth remained weak, with the advance–decline ratio slipping to 0.43.

The Indian rupee extended its appreciation streak to a seventh consecutive session, closing marginally stronger after surrendering most of its intraday gains.

Among Nifty constituents, Eternal is going to decare its quarterly result today.

Despite Monday’s correction, the bullish setup across key indicators and oscillators remains intact. On the downside 22,800 level is expected to act as strong support, while 23,100 is likely to be immediate resistance.