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Nifty Outlook

Markets remained volatile for yet another session and lost nearly a percent. The benchmark opened lower, tracking weak global cues as the rising yields continued to impact sentiment globally. It traded lackluster in the middle, followed by a marginal bounce in the end. Consequently, Nifty settled at 14,938; down by 0.95%.

On the sector front, except oil & gas, all the other indices ended in red wherein Metal, Telecom and IT were the top losers. The broader indices underperformed wherein both Midcap and Smallcap ended with losses of 1.9% and 1.5% respectively. It’s not surprising to see that the way markets are reacting to the global cues, in absence of any major trigger from the domestic front.

Going ahead, we feel global cues would continue to dictate the market trend in the near term. Besides, on the domestic front, key macro data like CPI, WPI and IIP would be on investors' radar. We reiterate our view to limit naked leveraged trades until we see some clarity emerging over the next directional move.

News

* PVR announced that it has opened 6 new screens multiplex in Forum Centre City Mall, Mysuru.

* Shilpa Medicare announced that it has received US FDA tentative approval for its ANDA, Apremilast Tablets, 10 mg, 20 mg, and 30 mg.

* Coal India announced that the board of directors has approved payment of second interim dividend for the FY21 at Rs 5 per share of the face value of Rs 10 per equity share.

Derivative Ideas

GAIL FUTS added around 8% in open interest addition as LONG buildup was seen in it till closing time. Current chart pattern also indicates further up move in its price. We suggest buying GAIL as per below levels.

Strategy:- BUY GAIL BETWEEN 144-145 STOPLOSS AT 141 TARGET 153.

Investment Pick - Mahindra & Mahindra Ltd.

Established in 1945, Mahindra and Mahindra (M&M) is the flagship company of the Mahindra Group. It is one of the leading conglomerates which operate in various segments such as Automotive (PVs, CVs, 2W and 3W), Farm Equipment, Hospitality, Information Technology, Financial Services, Real Estate, Retail and Logistics.

M&M is the market leader in Tractors and Utility Vehicles (UV) segment which is a part of its core business (Farm equipment and Auto). Factoring the strong performance in Q3FY21, we have raised our estimates for M&M and expect revenue and PAT to grow at 12.9% and 22.5% CAGR over FY20-23E. We value the core business at 16x FY23E EPS of Rs. 51.5 and arrive at a SOTP based target price of Rs. 1,087.

Buy Mahindra & Mahindra Ltd @ 9-12 Months CMP 840.4 TGT 1,087

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