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Nifty Outlook

Jubilation continues for the fourth successive session as the benchmark gained over half a percent amid volatility. Initially, weak global cues led to a muted start in the benchmark however healthy buying interest in the sectors such as FMCG, PSU banks and power aided the indices to inch northward as the day progressed.

Consequently, the Nifty ended with healthy gains of 0.7% at 14,896 levels. Amongst the sectors, mostly ended on a positive note, barring IT, consumer durables and telecom. Next, the outcome of the MPC’s monetary policy review meeting, which is scheduled for Feb 5, will be closely watched by the participants.

The majority expect status quo on interest rates but the commentary on inflation and economic outlook would hold importance. Amid all, we reiterate our view to focus on the selection of stocks and continuing with the “buy on dips” approach. Nifty has the potential to test 15,200 zone ahead.

News

* SBI reported Q3FY21 numbers wherein its net interest income grew by 3.7% YoY to Rs 28,819.9cr. Its Gross NPA stood at 4.77% as against 5.28% QoQ. Its net NPA was at 1.23% as against 1.59% QoQ.

* Sundram Fastners Q3FY21 revenue was up 34.8% at Rs 1,108.7cr as against Rs 822.5cr YoY. Its net profit rose 36.9% to Rs 142.7cr.

* Zee Entertainment reported revenue of Rs 2,729.3cr, up by 33.2% for Q3FY21 versus Rs 2,048.7cr YoY. The company posted growth of 14.5% YoY in its net profit at Rs 400cr.

Derivative Ideas

ADANIPORTS FUT added around 6% 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 ADANIPORTS as per below levels.

Strategy:- BUY ADANIPORTS BETWEEN 560-564 SL 545 TARGET 590.

Investment Pick - Dabur India Ltd.

* Dabur India reported healthy set of numbers for Q3FY21 its revenue grew by 16% YoY to Rs 2,729 cr driven by strong volume growth of 18.1% in domestic FMCG business. Its EBITDA grew by 16.5% YoY to Rs 574 cr while margin expansion was flat. PAT grew by 17.8% YoY to Rs 494 cr on the back of lower interest expense.

* Dabur’s portfolio is gaining traction each passing quarter largely driven by its focus on health and hygiene segment, new product launches, heavy investment behind their power brands and expanding in rural area. In addition cost optimisation measures and improving go-to-market approach is well supporting company’s growth. We remain positive on the company’s long term growth plans and have maintained a Buy on the stock with a target price of Rs 616.

Buy Dabur India Ltd @ 9-12 Months  CMP 526.1 TGT 616

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