Indian Stocks Expected to Trade Lower as Global Cues Signal Caution

Mumbai, ETMarkets – India's stock market is poised for a lower trading session on Wednesday, following weak global cues and rising volatility in the market. The Indian VIX, a benchmark of market volatility, jumped 3.33% to 14.48, indicating increasing caution among traders.

Experts say that while some buying interest has driven prices up, it's not enough to lift the market from its current state of uncertainty. "The call and put ratios are roughly equal, suggesting that neither bulls nor bears have an advantage at this stage," said Nooresh Merani, Independent Technical Analyst.

The 24,000-strike call option has attracted significant attention from traders, with a recorded open interest of 99.93 lakh contracts. On the other hand, the 23,500-strike put option has solid support at this level. "This indicates that investors are more inclined to wait for prices to stabilize before making a move," Merani explained.

Derivatives Analyst Dhupesh Dhameja notes that while there's an equal number of buyers and sellers in the market, neither side seems to have sufficient strength to propel the market up significantly. On the downside, the 23,500-24,000 range offers substantial buying interest at this price level.

Despite this backdrop, some analysts are still finding reasons to buy stocks: Buy | Target Rs 1,639 | Stop Loss Rs 1,550 (for sectors like technology and finance), or a more conservative view - Buy | Target Rs 498 | Stop Loss Rs 477 (in the pharmaceutical sector).

For bulls eyeing an upside move from current levels, some key resistance points to watch are around the 23,900-24,000 range. With Nifty trading below the 200-DMA, or day exponential moving average – a sign of downward pressure – this level appears firmly established.

To make short-term gains, cautious traders can consider buying stocks such as Airtel (Rs420/L), Tata Steel (Rs162/stop loss: Rs149), Tech Mahindra (Rs498/stops at Rs 477), or an investment in Nippon Life India ETF (Target price Rs1,639).

Investors considering a speculative play could buy these stocks, given their potential to grow if the market reverses its downwards slide