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Nifty Outlook

Extending yesterday’s gains, the market continued its upward trend and gained nearly a percent. Supportive global cues led to a positive start which was further fuelled by the buying in index majors. Consequently, markets touched a new record high largely led by healthy buying in Auto and IT counters. On the benchmark front, the Nifty ended with gains of 0.9% at 14,645 levels. All the sectoral indices, except FMCG, ended in the green.

The recent buoyancy on the global front combined with the supportive local cues are helping the index to regain momentum. However, volatility is still high on the stock-specific front. Keeping all in mind, we feel it’s prudent to continue with hedged positions and prefer index majors over the others.

News

* Hindustan Zinc’s Q3FY21 revenue was up 29.1% at Rs 6,033cr. Its net profit was up 35.8% to Rs 2,200cr as against Rs 1,620cr YoY.

* Federal Bank reported Q3FY21 numbers wherein net interest income was up 24.4% at Rs 1,437cr. Its net profit declined by 8.3% YoY to Rs 404.1cr.

* The power transmission & distribution business of Larsen & Toubro has won a slew of transmission line orders in Bangladesh. The scope of these packages involves design, supply, installation, testing and commissioning of extra high voltage transmission lines on turnkey basis.

Derivative Ideas

HAVELLS FUT added around 10% in open interest addition as LONG buildup was seen in it in till closing time. Current chart pattern also indicates further up move in its price. We suggest buying HAVELLS as per below levels.

Strategy:- BUY HAVELLS BETWEEN 1010-1015 SL 970 TARGET 1070.

Investment Pick - SBI Life Insurance Company Ltd.

* SBI Life Insurance Company Ltd. is a joint venture between State Bank of India and BNP Paribas Cardiff S.A. It is one of the leading life insurers in India with a healthy market share of 13.3% in terms of Individual rated premium. SBI Life offers a comprehensive range of life insurance and pension products at competitive prices, ensuring high standards of customer service and world-class operating efficiency.

* Within the industry, SBI Life is one of our preferred picks given its huge untapped client base, wide distribution reach and industry-leading cost ratios. Further, increased focus on business through digital channels and a strong distribution platform should lead to consistent market share gains for the company. We initiate with a Buy rating on the stock with a target price of Rs. 1069.

Buy SBI Life Insurance Company Ltd @ 9-12 Months CMP 935.5 TGT 1,069

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