India's equity market is expected to go through a period of consolidation after a significant decline from its peak in September. Analysts believe that market returns may moderate in the short term due to factors such as slower earnings growth, a slowdown in consumption, high valuations, and global macroeconomic challenges.

Traders are increasingly using pair trading as a strategy to navigate the market during this anticipated sideways movement. Pair trading is a market-neutral approach that allows investors to profit from the relative performance of two correlated stocks by taking long and short positions, thereby reducing exposure to overall market fluctuations.

One suggested pair trade opportunity is JSW Steel and Tata Steel, which could enable investors to take advantage of the current market conditions while minimizing risks associated with broader market trends.