Stock markets will open on a flat note on Wednesday, amid mixed global cues. Asian markets are trading in a tight range in early deals on Wednesday, as the volatile US stocks closed marginally higher overnight. Settlement of monthly contracts on the NSE on Thursday will keep traders busy. This being the final monthly settlement, analysts expect volatility in some individual counters.

Gift Nifty at 23,764 signals a flattish-to-positive opening for domestic markets. Analysts expect profit-taking in some counters ahead of the financial year end. Sector rotation and stock specific trades are expected and that will keep the market volatile, they added.

According to them, the return of foreign portfolio investors will keep the market in consolidation mode.

Siddhartha Khemka, Head – Research, Wealth Management, Motilal Oswal Financial Services Ltd, said: The market managed to close in the green for the seventh consecutive trading session on Tuesday, which suggests there is continued buying interest in domestic equities. We expect the market to continue with a gradual up-move on the back of FII inflows, strong INR and positive cues from US market.

Derivative trading signals a neutral trend, said analysts.

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According to Dhupesh Dhameja, Derivatives Analyst, SAMCO Securities, the derivatives market remains in a neutral phase, with Call and Put writers positioned nearly evenly, reflecting a wait-and-watch sentiment among market participants.

“A substantial accumulation at the 24,000-call strike (1.29 crore contracts) has turned it into a formidable resistance, while robust put writing at 23,000 (1.31 crore contracts) underscores a solid support zone, strengthening bullish confidence.,” he said, adding that the Put-Call Ratio (PCR) has dipped from 1.15 to 0.96, reflecting market consolidation and cautious positioning. With the Max Pain level stationed at 23,500, bulls are absorbing selling pressure, paving the way for continued upside potential.

India VIX, the primary gauge of market volatility, dipped 0.47% to 13.65, indicating fading uncertainty. As long as volatility remains below 15, the market is expected to sustain its bullish bias with minimal disruptions, he added.