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Nifty Outlook

Markets continue to trade volatile and ended half a percent higher. After a sluggish opening, the benchmark oscillated in a range initially however the SC judgment on the moratorium case lifted sentiment as the day progressed. Consequently, the Nifty index ended with gains of 0.5% at 14,815 levels. On the sector front, except for metal and oil & gas, all the other sectoral indices ended with gains wherein banking, capital goods and realty were the top gainers. The broader indices too showed decent traction.

We feel banking might help the index to inch further higher but negative sentiment due to the rise in the COVID cases and mixed global cues would cap the upside. We reiterate our cautious approach and suggest preferring hedged positions.

News

Bharti Airtel announced that Airtel Africa announced the signing of agreements to sell its telecommunications tower companies in Madagascar and Malawi to Helios Towers PLC in Africa.

Glenmark Pharmaceuticals announced that it has received approval from USFDA for Diltiazem Hydrochloride extended-release capsule USP, 60 mg, 90 mg and 120 mg, the generic version of Cardizem 1 SR Extended release capsules, 60mg, 90mg and 120 mg of Biovail Laboratories Inc.

Insecticides India announced that the board meeting is scheduled on March 30th to consider the proposal of buyback.

Derivative Ideas

AMBUJACEM added around 20% in open interest addition as long buildup was seen in it till closing time. Current chart pattern also indicates further up move in its price. We suggest buying AMBUJACEM in cash as per below levels.

Strategy:- BUY AMBUJACEM BETWEEN 298-299, SLOSS AT 294, TARGET 312.

Investment Pick - Kansai Nerolac Paints Ltd.

Established in 1920, Kansai Nerolac Paints Limited (KNPL) is a subsidiary of Kansai Paint Co. Ltd., Japan. It is the second largest coating company in India and a market leader in Industrial Coatings. KNPL has well established products in both the decorative and industrial segments. It has pan-India presence with 6 manufacturing plants, 104 depots and 27,500+ customer network. In international markets it expanded in Nepal, Bangladesh and Sri-lanka.

Going ahead, its strategy is to grow in both segments as well as gain market share from unorganised players on the back of positive sector trends, innovative products, focus on non-auto segments, increase distribution network and expand in newer geographies and in semi-urban and rural areas. Moreover its recent foray into adhesives and construction chemicals segment would aid benefits in the coming quarters. We have a positive view on KNPL hence we are initiating with a Buy rating on the stock with a target price of Rs. 705.

Buy Kansai Nerolac Paints Ltd @ 9-12 Months CMP 553.25 TGT 705

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