Indian equity markets made a swift recovery from the Budget day lows within a couple of trading sessions. Going forward, investor focus will shift to quarterly results, global cues, and the RBI monetary policy for market direction.
On the results front, investors will first react to the December quarter numbers announced after the market hours yesterday. Bharti Airtel posted a net loss of Rs 1,035 crore for the quarter, as it provisioned for the interest accrued on account of AGR payment.
Today, a total of 126 companies, including Adani Enterprises, Berger Paints, Cipla, and Indiabulls Housing, are scheduled to announce their December quarter results.
On the macro data front, investors will await the Markit Services PMI numbers for January to get more hints on the Indian economy's health. They will continue to track update on the coronavirus outbreak, the Rupee's trajectory, as well as the oil price movement.
Asian stocks steadied on Wednesday on hopes of additional Chinese stimulus to lessen the economic impact of a coronavirus outbreak, but risks remain as the illness continues to spread and the death toll neared 500. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.3 per cent. Australian shares were up 0.58 per cent, while Japan's Nikkei stock index rose 1.19 per cent. In the overnight trade in the US, the S&P 500 rose 1.5 per cent on Tuesday and the tech-heavy Nasdaq rose to a record high. The SGX Nifty, on the other hand, was indicating a flat to negative start for Sensex and Nifty today.
In commodities, oil prices remained weak on worries about a long-term dent in demand for energy and other commodities despite hopes for more output cuts from OPEC and its allies.
According to technical analysts, the recovery from lower levels has resulted in formation of the bullish “Morning Star” candlestick pattern on the daily charts. However, the range of 12,000-12,050 is a strong resistance zone for the Nifty, which should be taken out on closing basis to negate the bearish trend. Support is now shifted upward to 11,783.
And, in the end. here's a stock idea by HDFC Securities which recommends buying MAX India at Rs 89.5 for the target of Rs 99 with stop-loss at Rs 84.