Investor concerns about the coronavirus impact on the global economy continues to be the top factor for the markets. Chinese officials said that the number of new coronavirus infections in mainland China fell below 2,000 on Tuesday for the first time since January, although global experts warn it is too early to say the outbreak is being contained.
Besides, traders will also focus on stock-specific action, the Rupee's trajectory in today's session.
Reliance Industries has said it is consolidating its media and distribution business spread including TV18 Broadcast, Hathway Cable & Datacom, DEN Networks into Network18 which will pave the way for a Rs 8,000-crore company. The related stocks will react to the development today.
Telecom stocks will continue to be in focus. Even as the telcos made part-payments on Monday, reports say the Department of Telecommunications has sought legal opinion on whether to revoke bank guarantees of telcos in case they fail to pay their full AGR dues before March 17.
Globally, shares in Asia fell on Tuesday morning as the new coronavirus outbreak continued to roil companies amid expectations it would cause slowdown. Japan's Nikkei tumbled 0.65 per cent in early trade, the Topix fell 0.56 per cent and the Kospi also slipped 0.75 per cent. Australia's ASX200 declined 0.23 per cent. Overall, MSCI's broadest index of Asia Pacific outside Japan declined 0.17 per cent. At around 7:30 am, the SGX Nifty was trading 30 points lower, indicating a negative start for the domestic indices.
Oil prices slipped on Tuesday with Brent crude dipping 37 cents to $57.30 a barrel.
According to analysts, the Nifty has been forming a falling wedge pattern on the hourly charts which is a reversal pattern. The index is thus expected to bounce or retrace 50 per cent of the recent fall. hence, traders shouldn't rule out a bounce till 12,150.
And, in the end, here's a stock idea by Anand Rathi Shares and Stock Brokers which recommends buying PNC Infra at current levels for the target of Rs 225 with stop-loss at Rs 198.