IGI Logo

Nifty Outlook

For the sixth consecutive session, Bulls remained in control and pushed the markets to a newer high. The benchmark opened the gap up, tracking noticeable traction in IT majors post results. Besides, noticeable buying interest in metals, banking and financials further boosted sentiments as the session progressed. Consequently, the Nifty closed near day’s high at 18,339 levels, up by 1%. On the sector front, excluding auto, all the indices closed in green. The broader indices too posted healthy gains in the range of 0.6-0.7%.

Markets will first react to HCL Tech, HDFC Bank and D-Mart results on Monday. The recent move in the market is largely led by strong domestic factors and it may continue next week too. Since we’re seeing rotational buying across sectors and certain themes playing out well in between, participants should focus on identifying the stocks and using intermediate dips to add those names.

News

* Century Textiles and Industries has posted Q2FY22 revenue of Rs 1,013cr, up by 67% YoY. Its consolidated net profit stood at Rs 44.7cr as against loss of Rs 14cr in the same quarter last year.

* TVS Motor announced that it rolled out of 100,000 unit of BMW Motorrad’s 310cc series of motorcycles from its Hosur facility.

* GTPL Hathway posted Q2FY22 revenue of 596cr, up by 3.5% YoY. Its net profit fell by 4.7% YoY to Rs 43.1cr.

Derivative Ideas 

BANKNIFTY FUT has added around 8% in open interest as fresh long build up was seen in it. Current chart pattern also indicates further upmove in its price. We suggest buying call option as per below levels.

Strategy:- Buy BANKNIFTY 21st OCT 39800 CE@110-120, sloss at 80, trgt 200.

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 994.4 TGT 1,237

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.religareonline.com/disclaimer

SEBI Registration number is INZ000174330

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaime