Market Ahead, January 30: Top factors that could guide markets today

Markets will today react to the corporate earnings while also taking clues from the US Fed meeting outcome and stock-specific action for market direction. The session is likely to remain volatile as the January series derivative contracts are set to expire today.

The Federal Reserve held rates steady as expected while offering no new guidance on its balance sheet, but Chairman Jerome Powell noted that "uncertainties about the outlook remain, including those posed by the new coronavirus." 

On the results front, a total of 78 companies, including Colgate, Dabur, Bajaj Auto, Tata Motors, and Marico are scheduled to announce their December quarter results today.

In company-specific development, the special resolution proposed by IndiGo co-promoter Rakesh Gangwal was defeated in the company’s action-packed AGM yesterday. The resolution has not been passed as only 48.56 per cent of the votes cast were in its favour against the required minimum of 75 per cent.

Besides, foreign fund flow, the Rupee's trajectory, and the oil price movement will also be on the market participants' radar.

In the US, stocks initially showed little reaction to the Fed’s policy statement but steadily lost ground on the heels of a news conference by Chairman Powell. The Dow Jones Industrial Average rose 0.04 per cent, the S&P 500 lost 3 points and the Nasdaq Composite added 5 points. Asian stocks were mixed in Thursday's early trade and the SGX Nifty also indicated a flat start for Sensex and Nifty today.

In commodities, oil slumped as US crude inventories rose by the most since November, raising concerns about oversupply.

Back home, benchmark indices snapped their two-day losing run on Wednesday. Sensex closed 232 points higher at 41,199 while Nifty rose 74 points up at 12,129.

Analysts say that the Nifty is witnessing strong support in the sub-12,100 zones. As such, the market is likely to trade in the range of 12,100 to 12,200 until 12,200 level is breached. Hence, traders should try to buy at dips keeping a close eye on 12,100 level.

And, in the end, here's a stock idea by CapitalVia Global Research which recommends buying Asian Paints Limited above Rs 1,806 for the target of Rs 1,855 with stop-loss at Rs 1,773.