The goal of stable growth is expected to receive priority. Lawmakers will likely adopt the final version of the country's 13th Five-Year Plan (2016-20), which will serve as the blueprint of China's social and economic development in the coming five years.

Liu said in a research note an interim rally, particularly in oversold stocks of industry leaders with strong track records and undemanding valuations, could last through April. "Beyond April, one issue to watch out for is if China's growth may surprise on the downside, with the credit cycle unfolding and supply-side reforms kicking in."

It is still too early to assess whether it may help usher in more policy accommodation in the second half of this year, Liu said.

Analysts with Chinese investment bank China International Capital Corp echoed Liu's view, saying the A-share market will see a "relief rally" this month after the substantial correction since the beginning of this year.

Sectors like coal, steel, commodities and building materials, which will benefit from supply-side reforms, will likely outperform the general market while technology, media and telecommunications will experience correction after the recent strong rebound, CICC said in a report.

Lirong Xu, chief investment officer, Franklin Templeton Sealand Fund Management Co, was quoted by Bloomberg as saying that China's stocks will rebound as much as 20 percent in the short term as economic growth picks up and volatility in the yuan decreases.

Fitch Ratings maintained the stable outlook for China's sovereign rating as it is looking at the NPC meeting for more information on the authorities' strategy for addressing the structural issues.