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Nifty Outlook

Markets edged marginally higher in a range-bound session, taking cues from stable global indices. After the initial uptick, the benchmark hovered in a narrow band however movement on the stock-specific front kept the participants busy till the end. Finally, the Nifty index ended higher by 0.4% at 15,869 levels. Amongst the sectoral indices, except healthcare and metal, all the other indices ended in the green wherein banking, realty, and oil & gas were the top gainers. The broader markets too witnessed healthy buying interest as both midcap and smallcap ended higher by 0.4% and 0.6% respectively.

Nifty has been trading in an uptrend channel on the intraday chart and currently hovering around the upper band of the same. We’re seeing an early sign of a rebound in the banking index which could trigger a further surge. Traders should maintain their focus on the selection of stocks and avoid contrarian bets.

News

* Jubilant Foodworks reported its numbers wherein revenue was up 14.3% YoY to Rs. 1,026 cr. Its net profit came in at Rs. 104 cr as against Rs. 21 cr in the same quarter last year.

* Spencers Retail consolidated revenue was down 7.6% YoY to Rs. 592 cr. It reported a net loss of Rs. 34.5 cr as against loss of Rs. 49 cr.

* Whirpool delivered its Q4FY21 numbers wherein revenue was up 31.5% YoY to Rs. 1,779 cr. Its net profit jumped by 40.8% YoY to Rs. 130 cr.

Derivative Ideas

PIIND FUTS added around 4% in open interest as LONG buildup was seen in it. Current chart pattern also indicates further up move in its price. We suggest buying in PIIND in cash as per below levels.

Strategy:- BUY PIIND BETWEEN 2860-2870 STOPLOSS 2825 TARGET 2990.

Investment Pick - Finolex Industries Ltd.

Finolex Industries Limited (FIL) is a leading manufacturer of PVC pipes and fittings and the only backward integrated player in PVC resin. The company offers the latest range of PVC-U pipes and fittings which are used in agriculture, construction and industrial operations. It has strategically located manufacturing plants and a strong distribution network.

FIL is well established in agri pipes and has plans to expand in non-agri segment, its backward integrated manufacturing of PVC resin, strong distribution network and changing product mix would aid in earning better revenues as well as profits. Besides its strong brand recall value, growth plans and expansion in the PVC pipes segment are encouraging which makes it one of our preferred picks in this space. On the financial front, FIL has a healthy balance, decent cash flow and it has lowered its debt to comfortable levels over the years. We have initiated a BUY on the stock with a target price of Rs 222.

Buy Finolex Industries Ltd. @ 9-12 Months CMP 167.05 TGT 222

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