Indian Market Expected to Consolidate as Global Cues Remain Muted
On Wednesday, the Indian stock market is anticipated to consolidate its position, influenced by subdued global market conditions. As traders and investors assess the latest data, the Nifty futures closed slightly negative, ending the previous trading session with a minor decline of 0.13%, settling at the 23,094 level.
Market Indicators and Sentiment
The trading sessions have seen a notable shift in market dynamics, with the India VIX, a key measure of market volatility, closing down 0.3% at 15.66. This decline signifies a possible easing in investor anxiety, albeit amidst the backdrop of global market uncertainties.
On the options front, market data reveals substantial activity, with the maximum Call Open Interest (OI) recorded at the 23,400 strike level, closely followed by the 23,500 strikes. Conversely, the maximum Put OI has been observed at the 22,400 and then the 23,000 strikes. Analysts noted a trend of call writing at 23,400 and 23,200 strikes while put writing is evident at 22,400 and 23,000 strikes.
Chandan Taparia, an Analyst in Derivatives at Motilal Oswal Financial Services Limited, highlighted that “the options data suggests a broader trading range set between the 22,500 to 23,500 zones, with an immediate range between 22,800 to 23,300 levels.” He further explained that the Nifty index formed a small-bodied candle with a longer upper shadow, signaling selling pressure at higher levels.
Technical Recommendations
According to Taparia, the market has shown potential weakness if the Nifty maintains trading below the 23,150 zone. He anticipates possible support levels around 22,950 and 22,800, with resistances at 23,150 and 23,333.
In light of these market dynamics, experts have compiled a selection of stocks geared for short-term trading opportunities. Here are some recommendations from notable analysts:
- Gajendra Prabhu, Technical & Derivative Analyst at HDFC Securities:
- LTIMindTree: Buy | Target Rs 5,930 | Stop Loss Rs 5,476
- Samvardhana Motherson International: Buy | Target Rs 136 | Stop Loss Rs 123
- Berger Paints: Buy | Target Rs 520 | Stop Loss Rs 475
- Nooresh Merani, Independent Technical Analyst:
- Cipla: Buy | Target Rs 1,600 | Stop Loss Rs 1,450
- NTPC: Buy | Target Rs 330 | Stop Loss Rs 305
- Voltas: Buy | Target Rs 1,300 | Stop Loss Rs 1,180
- Kunal Bothra, Market Expert:
- ONGC: Buy | Target Rs 244 | Stop Loss Rs 229
- Wipro: Buy | Target Rs 330 | Stop Loss Rs 300
- Ashok Leyland: Buy | Target Rs 230 | Stop Loss Rs 214
It is essential for traders to note that the recommendations provided by market experts are based on their individual analyses and do not reflect the views of the Economic Times or other financial publications.
Conclusion
As the Indian market prepares for the mid-week trading session, market participants are urged to stay vigilant about the evolving global scenarios. The investment landscape, shaped by both national and international cues, continues to present both challenges and opportunities for traders seeking short-term gains.
For further updates and insights on market movements, stock tips, and investment strategies, remember to follow ETMarkets.com on various platforms, including Telegram for real-time news alerts.
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