Market Ahead, January 3: Top factors that could guide markets today

Surging global indices and some positive data points back home may help perk up investor sentiment in today's session. Market participants, though, will also look at stock-specific developments and any pre-budget news flow for further clues.

In stock-specific news, the government is unlikely to complete the strategic sale of Bharat Petroleum Corporation (BPCL), Container Corporation of India (Concor), and Air India by March-end, according to a Business Standard report. The stocks of the first two companies will react to the development.

Besides, Oil and Natural Gas Corporation (ONGC) walked away with all the seven oil and gas blocks on offer in the fourth round of Open Acreage Licensing Policy (OALP).

In another development, the Reserve Bank will carry out another round of special simultaneous open market operation to buy and sell government bonds of Rs 10,000 crore each on Monday.

Global stock markets jumped on the first day of trading in 2020 as a shot of Chinese stimulus and economic data drove the indices higher Wall Street’s three major indexes closed at records highs on Thursday, with the benchmark S&P 500 setting its 11th high in 14 sessions.  The risk-on sentiment continued in Asia where stocks climbed in Friday's early session. South Korea’s Kospi index, Hong Kong’s Hang Seng, and Australia’s S&P/ASX 200 Index all gained over 1 per cent each.

In commodities, oil prices steadied after early gains and Brent crude futures settled up 25 cents at $66.25 a barrel.

Back home, the S&P BSE Sensex ended Thursday's session 321 points higher at 41,627 level, and the broader Nifty50 settled at record closing high of 12,283, up 100. points.

Going ahead, analysts say that the daily, as well as weekly momentum indicators for Nifty have provided a buy crossover and hence traders can buy Nifty for the target of 12,400 with stop-loss at 12,225.

And, in the end, here's a trading idea for you by Anand Rathi which recommends buying ONGC at the current market price for the target of Rs 136 with stop-loss at Rs 124.