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Nifty Outlook

Markets traded lackluster and lost nearly half a percent, tracking mixed cues. Initially, weak Asian markets were weighing on the sentiments and a mixed trend across sectors kept the participants guessing as the session progressed. A sharp dip in select index majors from banking, metal and energy space pushed the benchmark lower in the final hour. Consequently, The Nifty settled around the 18,211 levels; down by 0.31%. The broader markets managed to outperform the index and ended in the range of 0.1-0.3%.

Markets are closely watching earnings for cues and we’ll see the reaction to the numbers of select index majors in early trade on Thursday. Besides, volatility is expected to remain high due to the scheduled monthly derivatives expiry. Participants should continue with the stock-specific trading approach and maintain positive bias till Nifty holds 18,000 levels.

News

* TTK Prestige Q2FY22 revenue was up 34.9% YoY at Rs 858.6 cr. It posted 58.2% jump in its net profit at Rs 103.5cr.

* Phillips Carbon Black Q2FY22 revenue was up 60.8% YoY at Rs 1,067.8 cr. Its net profit stood at Rs 122cr as against Rs 58cr YoY.

* Maruti Suzuki Q2FY22 revenue was up 9.6% at Rs 20,538.9 cr. EBITDA margin at 4.2% against 10.3% YoY. Its net profit was down 65.3% YoY at Rs 475.3 cr.

Derivative Ideas 

NIFTY FUT has added around 10% in open interest as short rolls was seen in November futures. Current chart pattern also indicates further downside levels in Index at around 18000 levels.

Strategy:- BUY 3rd Nov NIFTY 18000 PE@50-55, sloss at 25, trgt 90.

Investment Pick - The Ramco Cements Ltd

Ramco Cements Ltd (TRCL) is the fifth-largest cement producer in India and the most popular cement brand in South India. The company is six decades old and manufactures ready mix concrete, dry mortar products and various grades of cement. It has a presence across ten states of India with four integrated plants and six grinding units. Apart from South India, it is growing its presence in East India, Sri Lanka and the Maldives.

We have a positive outlook given its strong brand name, leadership position in South India and product portfolio. In addition, its focus on expanding capacity, increasing utilization levels and cost-saving initiatives would further help in improving profitability. We estimate its Revenue/EBITDA/PAT to grow at a CAGR of 12%/13.5%/15.5% respectively over FY21-24E and have initiated a Buy on the stock with a target price of Rs 1,237.

Buy - The Ramco Cements Ltd @ 9-12 Months CMP 1,032.05 TGT 1,2373

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