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Nifty Outlook

Markets ended the session with modest gains, extending the prevailing uptrend. The benchmark opened lower, tracking feeble global cues however buying interest in capital goods, metal and realty majors helped the index to recoup losses and inch gradually higher. Consequently, Nifty ended today's session with modest gains of 0.3% at 16,705 levels. The broader markets outperformed as both Midcap and Smallcap ended higher by 1% and 0.9% respectively.

Markets are largely mirroring the global counterparts and now all eyes are on the US Fed Chair address in Jackson Hole for any signal on tapering and way forward. Though the trend is positive, we’re not seeing decisiveness as participation is slightly restricted. We thus suggest avoiding aggressive bets and preferring index majors over others.

News

* Jindal Poly Films has acquired 100% shares of Jindal India Solar Energy and consequent thereof Jindal India Solar became a wholly-owned subsidiary.

* Wipro signed a strategic partnership with Data Robot to provide Augmented Intelligence at scale to help customers become AI-driven enterprises and accelerate their business impact.

* Computer Age Management Services is in process of setting up an office at GIFT city to provide asset management support services for financial institutions which have set up or are setting up operations in GIFT City.

Derivative Ideas 

STAR FUTS added around 12% in open interest in as LONG buildup was seen in it . Current chart pattern also indicates further up move in its price. We suggest buying in STAR as per below levels.

Strategy:- BUY STAR BETWEEN 590-595 SL 575 TARGET 620.

Investment Pick - Nippon Life India Asset Management Ltd.

Incorporated in 1995, Nippon Life Asset Management Company (NAM) is one of the leading AMCs in India with a total AUM of ~Rs. 3.79 tn. It is involved in managing the mutual fund (AUM of Rs. 2,442 bn) and managed accounts including Portfolio Management Services (PMS), Alternate Investment Funds (AIF), Pension Funds and Offshore Funds.

We continue to remain constructive on the Indian mutual fund industry given its low penetration level as compared to major economies (11% AUM to GDP ratio v/s world average of 62%). Further, NAM’s consistent increase in equity assets, industry-leading retail assets, focus on growing SIP book and strong presence in B-30 cities augurs well for the growth prospects of the company. We recommend a Buy on the stock with a target price of Rs. 492.

Buy Nippon Life India Asset Management Ltd @ 9-12 Months CMP 410.10 TGT 492

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