Market Ahead, January 29: everything you need to know before the opening bell

As India approaches the 2020 Union Budget, the hopes and expectations of the big day will be the main factor that will give direction to the markets, while investors will also closely follow the corporate results under way for specific stock actions. . In addition, the expiration of the derivative contracts of January on Thursday will likely add some volatility to today’s session.

According to a Business Standard survey, India Inc expects a series of steps that boost the economy, such as cuts in income tax rates, increased spending on rural infrastructure and job creation measures in the Union Budget this time.

Regarding the results, a total of 68 companies, including Bajaj Finance, Jubilant FoodWorks and Pidilite Industries, are planning to announce their results.

In addition, the flow of foreign funds, the trajectory of the Rupee and the movement of the price of oil will also be on the radar of market participants.

Globally, US stocks recovered on Tuesday when markets around the world stabilized after the head of the World Health Organization said it relied on China’s ability to stop the virus outbreak. The Dow Jones Industrial Average increased 0.65 percent, the S&P 500 gained 1 percent and the Nasdaq Composite added 1.43 percent. Asian stocks took indirectly from Wall Street and rose on Wednesday. The broader MSCI index of Asian and Pacific stocks outside of Japan increased 0.2 percent. Australian stocks rose 0.4 percent, while Japan’s Nikkei stock index rose 0.27 percent. The SGX Nifty also indicates a soft green start for Sensex and Nifty today.

In commodities, oil prices rose after falling sharply due to the spread of the coronavirus.

Investors will track the evolution of the coronavirus front. They will also await the meeting of the Federal Reserve of the United States later today. The Fed is expected to reiterate its desire to keep rates unchanged at least during this year.

Back home, benchmarks extended their losses to the second consecutive session on Tuesday. Sensex closed the day 188 points below at 40,967 and the Nifty ended with a loss of 63 points at 12,056.

Analysts say the Nifty has breached its short-term support of 12087 and closed below its 50-day EMA for the first time since October 7, 2019. There is strong support at 12,000. A close below 11,929 would be considered a reversal of the downward trend in Nifty, while an upward move could find resistance at 12272 levels.

And, in the end, here is an idea of ​​Religare Broking shares that recommends buying Bata India Limited around Rs 1,825-1,835 for the objective of Rs 1,940 with stop loss at Rs 1,780.


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