In $16$-bit $2$’s complement representation, the range is $-32768$ to $32767$.
Both numbers have sign bit $1$, so both numbers are negative.
Overflow in addition of two negative numbers happens only if the sum becomes less than $-32768$.
Now we need to check the most negative possible value of both numbers.
For a negative $2$’s complement number, the value becomes most negative when the remaining bits are as small as possible. So, to get the most negative case, put every $x=0$.
First number becomes:
$1010010110100000$
This is unsigned value $42400$.
So, its $16$-bit $2$’s complement value is $42400-65536=-23136$.
Second number becomes:
$1101101001100000$
This is unsigned value $55904$.
So, its $16$-bit $2$’s complement value is $55904-65536=-9632$.
Now add the most negative possible values:
$-23136+(-9632)=-32768$
The minimum possible sum is exactly $-32768$, which is still inside the valid $16$-bit $2$’s complement range.
If any $x$ becomes $1$, the unsigned value increases, so the negative number becomes less negative. Therefore, the sum cannot become smaller than $-32768$.
So, overflow is not possible.
Final Answer: $0$