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Nifty Outlook

Markets ended almost unchanged in a highly volatile trading session amid mixed cues. Initially, a news report on the Adani group triggered a weak start however the benchmark gradually recovered as the day progressed, thanks to noticeable buying in select index majors. The clarification by the company further comforted the market and helped the index to close flat. Eventually, the Nifty index settled at 15,812 levels. The broader market witnessed selling pressure as the midcap index ended lower by 0.7% and the smallcap index ended flat. Amongst the sectors, a mixed trend was witnessed as IT, Oil & Gas and Consumer Durables ended with gains whereas Realty, Capital Goods and Banking ended with losses.

Markets are seeing buying interest on every dip and it shows that bulls are in control. Apart from the domestic factors viz. inflation and monsoon updates, the upcoming US Fed meet will be in focus. We reiterate our bullish yet cautious view on the market and suggest maintaining stock-specific trading approach. We expect Nifty to test the next milestone of "16,000" soon

News

* Lupin today announced that its UK subsidiary, Lupin Healthcare (UK) Limited has received approval from the Medicines and Healthcare products Regulatory Agency to market Luforbec (beclometasone dipropionate/formoterol fumarate dihydrate) 100/6 µg pressurized metered dose inhaler (pMDI), the first branded generic of Fostair (beclometasone dipropionate/formoterol fumarate dihydrate) 100/6 µg pMDI, which has the potential to offer significant cost savings for the NHS.

* Kajaria Ceramics consolidated revenue was up 46.1% YoY to Rs. 953 cr. Its net profit came in at Rs. 131 cr as against Rs. 48 cr YoY.

* Gayatri Projects revenue was up 49.5% YoY to Rs. 1,360 cr. Its net profit came in at Rs. 18.6 cr as against Rs. 81 cr loss in the same quarter last year.

Derivative Ideas

ICICIPRULI FUTS added around 15% 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 ICICIPRULI in cash as per below levels.

Strategy:- BUY ICICIPRULI BETWEEN 584-585 STOPLOSS 577 TARGET 605.

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 169.8 TGT 222

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