Corporate results and stock-specific action will be the top factors guiding investor sentiment today.
Exide Industries, Cipla, Voltas, Tata Steel, and 75 other companies are scheduled to announce their September quarter results today.
Yesterday, Titan reported a muted performance for the September quarter (Q2) on Tuesday after market hours because of higher gold prices and weakness in overall consumption. The stock will react today.
Realty stocks may be in focus to Union Finance Minister Nirmala Sitharaman's comment that the sector needs the government’s attention and the Centre is working with the Reserve Bank of India (RBI) towards tweaking the existing laws to make them conducive for the sector.
Besides, news agency Reuters said the Central Bureau of Investigation (CBI) had registered 42 new cases of bank fraud amounting to about Rs 7200 crore after conducting searches in 187 places across the country.
These apart, market participants will also watch out for foreign fund flow, the rupee's trajectory against the US dollar, and movement in oil prices.
Domestic indices yesterday snapped their seven-day gaining streak. The S&P BSE Sensex slipped 54 points to end at 40,248, while the broader Nifty50 ended at 11,917, down 24 points.
According to analysts, Nifty has been consolidating for the last few sessions, and with the bullish “Cup and Handle” formation on the daily charts, the upside target of Nifty this month is 12,300 with support seen at 11800 level.
On the global front, Asian shares were little changed on Wednesday. MSCI's broadest index of Asia-Pacific shares outside Japan was unchanged. Australian shares were up 0.14 per cent, while Japan's Nikkei stock index rose 0.35 per cent. US stocks paused in the overnight trade after the recent rally with the Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite all ending flat for the day. SGX Nifty, on the other hand, was trading lower indicating a negative start to the day for domestic indices.
In commodities, oil prices rose more than 1 per cent on Tuesday on hopes for a U.S.-China trade agreement and optimism that Washington could roll back some tariffs on Chinese imports. Brent crude futures rose 83 cents to settle at $62.96 a barrel.
And before we wrap up, here's a trading idea. HDFC Securities recommend buying Jubilant Foodworks at Rs 1,582 for the target of Rs 1,700 with stop loss at Rs 1,550