Market Ahead, February 24: Top factors that could guide markets this week

The Indian equity market is likely to remain volatile this week as a host of factors will influence investor sentiment ahead of the expiry of February series futures & options contracts on Thursday. While investors will continue to monitor developments on the coronavirus front, the release of India's December quarter GDP numbers on Friday will be another top trigger for the markets. The Indian economy grew at the slowest pace of 4.5 per cent in more than six years in the July-September 2019 period.

Besides, market participants will also await any major outcome from US President Donald Trump’s India visit although he has said that a trade deal with India is more likely after the US election.

These apart, the telecom AGR issue will continue to be a big focus. On Sunday, officials from the finance ministry, NITI Aayog, and Department of Telecommunications discussed urgent relief measures that could be extended to the telecom industry on the AGR issue.

Oil prices, Rupee's trajectory, and stock-specific action will also influence investor sentiment.

Global shares extended losses on Monday as the spread of the coronavirus outside China accelerated with infections jumping in South Korea, Italy and the Middle East, in a worrying new development in the outbreak. The virus has killed 2,442 people in China, which has reported 76,936 cases. It has spread to some 28 other countries and territories, with a death toll of around two dozen, according to a Reuters tally.

In early Asian trades, Nikkei futures slipped more than 1 per cent. Australia’s benchmark index slid 1.6 per cent while New Zealand was down about 1 per cent. South Korea’s KOSPI index fell 2.2 per cent. That left MSCI’s broadest index of Asia-Pacific shares outside Japan off 0.7 per cent.

Oil prices also slid with Brent crude slumping 2.8 per cent to $56.87 a barrel 

Last week, the BSE Sensex declined 0.2 per cent to 41,170 and the Nifty50 fell 0.27 percent to 12,081. Going forward, analysts say that as long as the Nifty does not enter the zone of 12,030 to 12,040, it may advance to the next leg of the rally. Once the Nifty surpasses 12,160, we may see Nifty retesting of 12,220 levels. On the downside, 12,042- 12,000 remains a strong support zone. 

And, in the end, here's a stock idea by Angel Broking which recommends buying Tata Steel for the target of Rs 468 over the next few days.

Read by: Kanishka Gupta