Weekly Market Analysis & Algo Performance: October 23, 2026

Portfolio Links

Model 1 Performance     (To know more about it click here)

Model 3 Performance    (To know more about it click here)     

Nifty Future Long-Short Strategy Performance   (To know more about it click here)

Weekly Portfolio Performance Chart

Equity Markets:

After last week's sharp relief rally, the equity markets resumed their downward trajectory during this holiday-shortened four-day trading week (markets were closed on Tuesday, October 20, for Dussehra). Benchmark indices closed in the red across all four trading sessions, dragged down by a resurgence in Brent crude oil prices past $110 per barrel, sustained foreign fund outflows, and heavy selling pressure across financials, metals, and the broader midcap and smallcap segments.

Key Market Triggers

• Crude Oil Surge & Geopolitical Tensions: Escalating Middle East tensions pushed Brent crude oil sharply higher to top $110–$114 per barrel during the week. This renewed fears of imported inflation, fiscal strain, and operating margin compression across domestic consumption and manufacturing sectors.
• Severe Broader Market Correction: Valuation discomfort and the unwinding of leveraged positions triggered a disproportionate sell-off in the broader markets. While frontline indices cushioned some losses, midcap and smallcap counters bled heavily throughout the week, accompanied by a sharp spike in India VIX (+6.47% on Friday to settle at 16.77).
• IT Resilience vs. Global Tech & Financial Drag: Information Technology stocks (led by Infosys, Wipro, HCLTech, and TCS) bucked the trend mid-week on the back of earnings visibility, preventing a steeper collapse in the benchmarks. However, a global AI-led equity pullback on Wall Street and heavy domestic selling in heavyweights like Bajaj Finance, Axis Bank, and Tata Steel kept the overall market structure firmly negative.
• Sustained FII Selling vs. DII Support: Foreign Institutional Investors (FIIs) continued to offload Indian equities amidst elevated global yields and geopolitical risk, though steady Domestic Institutional Investor (DII) inflows and currency support tied to Jio IPO foreign inflows helped limit the downside in the Rupee.
  
  

Weekly recap:

The Bank Nifty Index has underperformed the Nifty Index and Nifty IT index has outperformed the Nifty Index this week.

This week, Nifty Midcap 100 Index is down -5.63 percent.

The Nifty Index is down -2.36 percent.

Key Levels for the Nifty Index Daily Timeframe

20   EMA - 22840

50   DMA - 23404

200 DMA - 24119

Nifty Weekly Timeframe Levels

Open - 23150.85

Low -   22372.00

High -  23175.25

Close - 22600.00

Nifty closed below 50 DMA, 200 DMA and 200 EMA suggesting down trend in the Nifty Index.

Model 1 & Model 3

This week, Model 1 is down -5.79 percent and Model 3 is down -5.26 percent. 

Model 1 has underperformed the Index by -3.43 percent and Model 3 has outperformed the Index by +0.40 percent.

Nifty Long-Short

The Long-Short strategy for the Nifty Index has returned a negative result of -5.39 percent this week.

Next Week Update

The Nifty Long-Short Strategy's current position is Short.

Long-term Performance Summary

*After brokerage and taxes, returns are determined at the performed deals.

In September 2026, Models 1 and 3 returned -2.9 percent, and -5.9 percent respectively, compared to the Nifty 50 Index's -6.1 percent return.

In September 2026, the Nifty Long-Short is up +18.0 percent.

For the Year 2025 Model 1, 3 and Nifty Long Short returned -18%, +7%, and +32% respectively, compared to the Nifty 50 Index's return of +11%. 

For Financial Year 2025-2026 Model 1, 3 and Nifty Long Short returned -11.18%, +16.88% and -9.53% respectively, compared to the Nifty 50 Index's return of -5.05%.

 

Year To Date - 2026

Models 1 and 3 returned -0.89 percent and -11.37 percent respectively, compared to Nifty's -13.51 percent return for 2026.

The Nifty Long-Short year-to-date return (from January 1, 2026) is now -21.80 percent, compared to the Index's -13.51 percent.

Summary since inception

Since its debut, Model 1 has increased by 222.88 percent. The Nifty index has risen by 109.21 percent  over the same time span.

Since its debut, the Nifty long-short strategy has increased by 455 percent on the capital and 843 percent on the margin money.

Model 1 has been operational since July 13, 2020, whereas the Index Long-Short strategy has been operational since August 14, 2020. 

Since the inception, Model 3 is up +135.81%, compared to 102.88% for the Nifty Midcap Index. 

Model 3 has been operational since July 12th, 2021.

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