Market Ahead, December 26: Top factors that could guide markets today

Indian equity markets are likely to remain volatile on Thursday amid mixed trade in Asian shares and ahead of expiry of futures and options contract of December series later in the day. 

The overall investment sentiment is likely to remain subdued in this holiday week as investors await fresh cues. Market participants will thus track stock-specific action, global factors, and oil and rupee's trajectory during the day. 

In stock-specific news, a Business Standard report says that, even though the NCLAT reinstated Cyrus Mistry as chairman of Tata Sons and three other group companies last week, he is unlikely to take up a board position at any of these companies. As per the report, Mistry might appoint nominee directors who would ensure best practices of corporate governance at Tata group companies.

Meanwhile, Brickwork Ratings has downgraded the ratings of Yes Bank’s lower Tier II Bonds, upper Tier II Bonds, hybrid Tier I Bonds and innovative perpetual debt instruments. The stock may react to the rating downgrade today.

Globally, Asian stocks opened on a quite note on Thursday. Japan's Topix index was up 0.4 per cent while South Korea's Kospi Index slipped 0.1 per cent. Overall, the MSCI Asia Pacific Index ticked up 0.1 per cent. The Wall Street, Hong Kong, and Australian markets are closed today on account of Christmas.

In commodities, oil prices inched higher on Thursday and Brent crude futures was up 1.33 per cent at $66.29 a barrel.

Back home, benchmark indices ended lower in a subdued session on Tuesday. The benchmark S&P BSE Sensex declined 181 points to close at 41,461 level. On the NSE, the Nifty50 ended at 12,213, down 49 points

Going ahead, analysts say that the Nifty is witnessing stiff resistance in sub-12,300 zones. The level of 12,000 will act as a major support level for Nifty's weekly expiry, while 12,300 will act as resistance. Hence, traders should try to buy on dips from higher levels and try to book profit at higher levels, keeping a close eye on 12,300. 

In the end, here's a trading idea for you by CapitalVia Global Research Limited which recommends buying Infosys above Rs 737.40 for the target of Rs 760 with stop-loss at Rs 722.