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Nifty Outlook

Markets edged lower in a volatile session despite stable global cues. Weakness in heavyweights from the sectors like banking and oil & gas dragged the benchmark lower however buoyancy in the auto and IT majors capped the downside. Finally, Nifty settled at 17,999.2; down by 0.6%. Amid all, a mixed trend was witnessed on the broader front wherein midcap ended lower and smallcap closed marginally in the green.

Mixed global cues are keeping the participants on the edge and we expect the trend to continue, at least in near future. Among the sectors, the continuous underperformance of the banking pack is dragging the benchmark lower while others help the index to cap the damage. In the current scenario, it’s prudent to stay light and wait for clarity.

News

* Escorts Agri Machinery (EAM), division of Escorts, shall be increasing the prices of its tractors effective November 21, 2021.

* HCL Technologies announced a new multi-year application deal with Euroclear Group to accelerate its agile transformation journey with technologies and working practices to improve its digital capabilities.

* Coromandel International announced the project initiation for setting up a new 1650 Metric Tonnes per day design capacity sulphuric acid plant at its fertiliser complex in Visakhapatnam at a cost of Rs 400 cr.

Derivative Ideas

JINDAL STEEL FUT lost around 1% on 16th Nov. The Scrip along its peers gave a Breakdown on Charts, poised to test the Support around 360 levels.

Strategy:- SELL JINDALSTEL FUT@388-389, SLOSS AT 394, TRGT 380.

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 1,034 TGT 1,237

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