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Published on 24/11/2020 9:42:17 AM | Source: Religare Broking Ltd

Markets started the week on a positive note and gained over half a percent amid volatility - Religare Broking

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

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Nifty Outlook

Markets started the week on a positive note and gained over half a percent amid volatility. After a gap up opening, the benchmark oscillated in a range and settled closer to the day’s high, thanks to healthy buying in Energy, IT and Pharma sectors. Further, news of rapid roll-out of vaccine too boosted investor’s sentiments. Consequently, the Nifty ended near 12,927 levels, up by 0.5%.

The broader market indices continued their outperformance and ended in the range of 1.1-1.4%. Markets are currently seeing time-wise correction while we’re seeing noticeable buying in index majors on every dip. Going ahead, upcoming derivatives expiry, global cues and updates on COVID-19 will remain in focus.

On the expected lines, we’re seeing fresh traction in defensive viz. FMCG, IT and pharma while the rate sensitives are taking a breather after the phenomenal run. Traders should align their positions accordingly.

 

News

* Strides Pharma announced that its step-down wholly owned subsidiary, Strides Pharma Global Pte. Ltd, Singapore, has received approval for Prednisone Tablets USP, 2.5 mg and 5 mg from the USFDA.

* Glenmark Pharma reported that in the Phase 3 clinical study, it’s oral antiviral medication Favipiravir have shown improvement in patients with mild to moderate COVID-19.

* Mindtree announced a 5-year deal with the Nordex Group as its business transformation partner to simplify, modernize, and transform its entire IT landscape globally.

 

Religare Super Idea**

 

Derivative Ideas

MOTHERSUMI FUT added around 20% 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 MOTHERSUMI as per below levels.

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

 

Investment Pick - Marico Ltd.

* Marico reported decent numbers for Q2FY21, its revenue grew by 8.7% YoY to Rs 1,989cr largely driven by domestic volume of 11% and constant currency growth of 7% in international business. On operational front, EBITDA grew by 10.2% YoY to Rs 389cr while margin was marginally up by 26bps as raw material price were higher which restricted the growth. However cost saving measures and optimisation of advertisement spends aided support. PAT growth was restricted to 7.9% YoY at Rs 273cr as the company reported exceptional item to the tune of Rs 33cr.

* After a muted performance in Q1FY21, Marico’s performance in Q2FY21 witnesses a steady improvement. We believe Marico’s medium to long-term growth prospects will be driven by investment behind its core brands, renovating products in mid-segment, focus on growing and gaining market share in premium category, cost saving initiatives, growing in e-commerce space and as well improving distribution reach. Thus maintaining positive view we have assign a Hold on the stock with a target price of Rs 405.

Buy Marico Ltd @ 9-12 Months CMP 378.25 TGT 405

 

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