Investors will keep a keen eye on the Reserve Bank of India's policy rate decision due later today while a rally in the global markets may also influence sentiment.
In a survey conducted by Reuters, economists said the RBI is likely to keep monetary policy accommodative without cutting interest rates, as inflation is above target and the economy has shown possible signs of recovery. As such, investors will look for the monetary policy committee's outlook on inflation and the economy.
On the results front, a total of 135 companies are scheduled to announce their December quarter earnings today including Eicher Motors, Hero MotoCorp, Sun Pharma, and RITES.
Shares of YES Bank could remain in focus today after former independent director Uttam Prakash Agarwal demanded action against CEO and MD Ravneet Gill for allegedly violating various regulatory norms.
Besides, investors will keep track of any update on the coronavirus outbreak as well as the Rupee's trajectory and the oil price movement.
In the US, the S&P 500 surged 1.13 per cent to a record close of 3,335 while the Nasdaq Composite added 0.43 per cent to 9,509, also a record high, in Wednesday's overnight trade, as they tampered worries about the coronavirus. The death toll from the month-long coronavirus outbreak has continued to climb in China, rising to 563. Besides, World Health Organization officials have damped down expectations of imminent breakthroughs in the development of vaccines or treatments for the outbreak.
Despite this, Asian stocks edged up on Thursday. MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.39 per cent while Japan's Nikkei rose 1.63 per cent.
Back home, benchmark indices settled in the green for the third consecutive day on Wednesday.The S&P BSE Sensex rallied 353 points to end at 41,143 and the benchmark Nifty50 index ended at 12,089, up 106 points.
Analysts say that traders should try to buy at any dip as market has maximum put open interest at 12,000 which will act as major support level ahead of weekly expiry, but 12,100 will act as resistance. However, if the Nifty breaches 12,100, it can lead to short covering move up to 12,200.
And, in the end. here's a stock idea by CapitalVia Global Research which recommends buying Colgate Palmolive above Rs 1,380 for the target of Rs 1,435 with stop-loss at Rs 1,345