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Nifty Outlook

Markets drifted lower for the fourth successive session and lost nearly a percent, tracking unsupportive global cues. After a weak start, the benchmark indices tried to recovery but profit-taking in banking, auto, metal and healthcare majors gradually pushed the index southward. Consequently, the Nifty index settled below 15,000 and we had a similar trend on the sectoral front.

Nifty has critical support at 14,800 and a decisive break may result in further fall else consolidation will continue. We reiterate our cautious stance and suggest focusing more on position management during the corrective phase. Further, volatility is likely to remain high across the board. Traders should align their positions accordingly and limit leveraged positions.

News

Aurobindo Pharma announced that it has received final approval from the USFDA to manufacture and market Droxidopa Capsules, 100 mg, 200 mg and 300 mg. Droxidopa Capsules are generic version of Lundbeck NA Ltd's Northera Capsules. The product will be launched immediately.

Steel Strips Wheels has bagged new exports orders worth EUR 53OOO for 5000 wheels for EU Caravan market and it is to be executed in April 21 from its Chennai plant.

Zydus Cadila has received final approval from the USFDA to market Droxidopa Capsules, 100 mg, 200 mg, and 300 mg. It is used to treat low blood pressure that causes severe dizziness or a lightheaded feeling.

Derivative Ideas

AMBUJACEM added around 6% in open interest addition as SHORT buildup was seen in it in till closing time. Current chart pattern also indicates further down move in its price. We suggest buying AMBUJACEM 270 PE as per below levels.

Strategy:- BUY AMBUJACEM 270 PE AT 1.80-2.00 STOPLOSS AT 1 TARGET 3.60.

Investment Pick - Britannia Industries Ltd

Britannia Industries (BRIT) posted mixed numbers wherein revenue was below our expectation while profit grew strong. Revenue came in at Rs 3165.6cr, up by 6.1% YoY. On operational front, its EBITDA grew by 21.7% YoY to Rs 611.5cr, while margin expanded by 248bps on the back of cost efficiencies measures. The company reported healthy growth of 22.4% YoY in net profit at Rs 452.6cr with margin expansion of 190bps YoY to 14.3%. Going forward, we remain positive on the company’s long term growth as the focus would be enhancing sales, improving margins via cost efficiency measures and strengthening distribution reach. Maintain a Buy. Going forward, BRIT strategy would be to drive strong growth by launching new and innovating products, focus on brand building and strengthening distribution reach. Besides its efforts on improving margins via cost efficiency would be its core agenda. Apart from this, strong growth momentum from rural and international businesses will continue to support and lead to market share gains. Further along with the optimistic management plan the company has strong balance and decent cash flow which would aid growth. Thus, we have a positive view on the stock for long term and have maintained a buy rating on the stock with a target price of Rs 4,265.

Buy Britannia Industries Ltd @ 9-12 Month CMP 3,331.2  TGT 4,265

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