Market Ahead, December 11: Top factors that could guide markets today

Investors may continue to stay cautious ahead of the release of key datapoints on the Indian economy while they also await imminent news on US Fed interest rate decision, the UK election, and US-China trade talks for more clarity. 

According to a Business Standard report, the government is likely to miss its fiscal deficit target for FY20 and the actual number could be anywhere between 3.5 per cent and 3.8 per cent of GDP, as against the budgeted 3.3 per cent. While this worry over the government's ability to maintain its fiscal deficit target could keep the overall market sentiment lower, investors will focus on stock-specific developments, oil price movement, the Rupee's trajectory, and foreign fund flow for short-term cues.

On the stock-specific front, YES Bank has told the exchanges it is considering the $500 million offer made by Citax Holdings and Citax Investment Group. The firm also said it is still considering the binding offer of $1.2 billion offer from Canadian businessman Erwin Singh Braich and SPGP Holdings.

Globally, Asian stocks flatlined on Wednesday as Sino-US trade talks approached a weekend deadline with little sign of progress. MSCI’s broadest index of Asia-Pacific shares outside Japan barely budged. Japan’s Nikkei ticked lower, and Australia's ASX 200 knocked off modest early gains.

In the US, the Dow Jones Industrial Average and the S&P 500 each fell 0.1 per cent each, while the Nasdaq dropped by a little less ahead of the US Fed interest rate decision due tonight. The SGX Nifty suggested a flat to positive start for the domestic indices for today.

In commodities, oil prices fell on Wednesday after industry data showed a surprise build in crude oil inventory in the United States. Brent futures fell by 37 cents to $63.97 per barrel.

Back home, the benchmark S&P BSE Sensex ended Tuesday's session at 40,240 level, down 248 points. On the NSE, the Nifty50 closed below the 11,900-mark at 11,857 level, down 81 points. 

In the end, here's a trading idea by Religare Broking which recommends selling December Futures of Canara Bank around Rs 215-217 with the target of Rs 204 with stop-loss at Rs 222.