Published on 19/01/2021 9:45:49 AM | Source: Religare Broking Ltd

Markets plunged sharply lower and lost nearly one and a half percent amid weak global cues - Religare Broking

Posted in Market Outlook| #Market Outlook #Religare Broking Ltd

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Nifty Outlook

Markets plunged sharply lower and lost nearly one and a half percent amid weak global cues. Initially, the benchmark opened marginally in the red tracking unsupportive global markets which further deteriorated as the session progressed. However, recovery in select index majors recouped losses in the middle but not for long.

Consequently, the Nifty ended around the day’s low at 14,281 levels. On the sector front, except consumer durable, all the other indices ended in the red wherein metals, healthcare and auto were the top losers. In line with the benchmark, the broader market indices too ended lower in the range of 2-2.3%. The news of fresh COVID cases in China has spooked the markets across the globe including India as participants are worried about global economic recovery.

At the same time, we’re seeing a noticeable rise in volatility on the domestic front too, thanks to the prevailing earnings season. Amid all, we reiterate our positive yet cautious view and suggest focusing more on stock selection and risk management. On the index front, Nifty has critical support at 14,100.



* The construction arm of L&T has secured a large order for its heavy civil infrastructure business from Rail Vikas Nigam Ltd for Package 4 of the New Broad-Gauge Line between Rishikesh and Karanprayag in the State of Uttarakhand, India.

* Trident reported Q3FY21 numbers wherein its revenue was up 20.4% at Rs 1,303.2cr against Rs 1,082.5cr YoY. Its net profit came at Rs 149cr as against Rs 42.5cr YoY.

* Snowman Logistics Q3FY21 revenue grew 2.4% at Rs 60.2cr as against Rs 58.7cr YoY. EBITDA grew 21.1% and net profit came at Rs 1.4cr as against loss of Rs 3.4cr YoY.


Derivative Ideas

MANAPPURAM FUT added around 11% in open interest addition as SHORT buildup was seen in it in till closing time. Current chart pattern also indicates further up move in its price. We suggest buying MANAPPURAM 160 PE as per below levels.

Strategy:- BUY MANAPPURAM 160 PE BETWEEN 4-4.10 SL 3 TARGET 6.50.


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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