Global cues, macro data, and stock-specific action will set the tone for markets this week.
On the domestic front, industrial production data for the month of October and CPI inflation for November will be released on December 12 post the market hours. A day later, WPI inflation and India's November trade figures will be released. All these data points will influence sentiment in the markets.
Other major domestic events will be the listing of Ujjivan Small Finance Bank scheduled for December 12 and fundraising by YES Bank.
Meanwhile, market participants will await any news on more stimulus measures to boost slowing economy after Finance Minister Nirmala Sitharaman on Saturday said the government is working on more steps to revive the economy.
On the global front, the top event investors will watch out for this week is the US Fed rate decision on Thursday. Analysts expect the US central bank to keep rates unchanged in the range of 1.5 per cent to 1.75 per cent.
Market participants will also keep track of any progress in the US-China trade deal, especially with the December 15 deadline looming when the tariffs on $156 billion in Chinese imports is set to take effect.
Also, the crucial British election that will determine the UK's relationship with the European Union will be held on December 12.
These apart, the rupee's movement against the US dollar, foreign fund flow, and the oil price movement will also impact investors' risk-taking appetite.
Asian stocks kicked off Monday's trade with modest gains. Japan’s Topix index rose 0.4 per cent. Australia’s ASX 200 Index rose 0.2 per cent, and Kospi index climbed 0.2 per cent. SGX Nifty, though, signalled a weak start for domestic indices.
In commodities, Brent crude futures were trading 0.34 per cent lower at $64.17 per barrel in the early trade.
Back home, the Sensex dropped 334 points to settle at 40,445 on Friday while the Nifty50 index ended 97 points lower at 11,921. Going ahead, analysts say the main support for Nifty is placed in the zone of 11,883 - 11,850. If Nifty slides below this level, the fall may extend towards 11,750 – 11,700. On the other side, if Nifty manages to hold the support zone and starts staying beyond 12,000, the index can continue its upward trajectory towards 12,100 – 12,160.
In the end, here's a trading idea for you by Angel Broking which recommends buying Larsen & Toubro at current levels for a target of Rs 1,350 over the next few days. The stop loss should be fixed at Rs.1,260.