Market Ahead, February 10: Top factors that could guide markets this week

Indian bourses would track macro data, developments surrounding the coronavirus outbreak as well as the Delhi poll results for cues this week.

The coronavirus death toll in China increased to 908, well over the total of 774 who died from SARS epidemic in 2002-03. This led to Goldman Sachs cutting its Q1CY20 real GDP growth forecast for China to 4 per cent from 5.6 per cent earlier. As such, investors are likely to stay cautious regarding the threat to global economic growth from coronavirus spread. 

Markets may also see at least a knee-jerk reaction to the results of the Delhi Assembly polls set to be declared tomorrow. TV exits polls have backed Aam Aadmi Party (AAP) to retain power in Delhi after elections ended on Saturday with more than 55 per cent turnout.

In macro data, Industrial production and retail inflation data is due on Wednesday, while WPI inflation numbers will be released on Friday.

Moreover, corporate results for the December quarters will continue to flow in. Around 2,500 companies, including GAIL, Coal India, IRCTC, ONGC, and BPCL, are scheduled to announce their quarterly numbers this week.

Besides, key factors such as global crude oil movement and Indian rupee-US dollar trend would also influence trading.

Asian stocks fell on Monday as the death toll from a coronavirus outbreak surpassed the SARS epidemic, raising alarm bells about its severity. MSCI's broadest index of Asia-Pacific shares outside Japan stumbled 0.7 per cent. Japan's Nikkei fell 0.8 per cent while South Korea's KOSPI was off 1.4 per cent and Australian shares eased 0.5 per cent.

In commodities, oil prices extended their decline as the specter of excess supplies loomed over the market after the spreading coronavirus outbreak hit demand in China. As a result, Brent crude was slipped 38 cents to $54.09 a barrel.

Back home, Sensex fell 164 points to 41,141 on Friday while the Nifty closed 39 points lower at 12,098.

Analysts say that Nifty is witnessing stiff resistance in sub-12,150 zones. But traders should try to buy at any dip as the market has maximum put Open Interest at 12,000 which will act as a major support level for the weekly expiry. However, if Nifty is able to breach 12,180, it can lead to short covering move up to 12,270.

And, in the end, here's a stock idea for you by CapitalVia Global Research which recommends buying ACC Limited above Rs 1,515 for the target of Rs 1,563 and with stop-loss at Rs 1,480.