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Nifty Outlook

Markets ended almost unchanged in a volatile trading session, mirroring the previous session’s move. The benchmark opened on a negative note amid weak global cues and drifted further lower due to profit booking in FMCG, IT and financials. However, a rebound in the latter pared all the losses and helped the index to close on a flat note. Among the benchmark indices, Nifty managed to settle above 17,500 levels. A mixed trend was witnessed on the sectoral front while the market breadth was inclined on the advancing side.

Markets will first react to macroeconomic data in early trade on Monday. On the global front, the upcoming Fed meet will remain in focus along with the updates on the new variant. Amid all, we reiterate our view to maintain a positive yet cautious approach and focus more on stock selection. Nifty needs to hold the 17300-17400 zone for further recovery

News

* Zydus, (Cadila Heathcare) announced that it has received permission from the USFDA to initiate the Phase 2(b)/3 Prospective, Multi-centre, Randomized, Double-blind, Placebo-controlled adaptive clinical trial to evaluate Efficacy and Safety of Saroglitazar Magnesium in Subjects With Primary Biliary Cholangitis.

* TVS Motor Company announced the launch of its motorcycle TVS Apache RR 310 and TVS NTORQ 125 for the aspirational young customers in the Philippines. The company has developed two versions of Fi platforms: RT-Fi (Race Tuned Fuel injection) and ET-Fi (Eco thrust Fuel injection).

* Alembic Pharmaceuticals announced that it has made a strategic investment in RIGlmmune Inc., a biopharmaceutical research company co-founded by two prominent Yale University professors.

Derivative Ideas

TATAMOTORS ended flat on 10th Dec. The Derivative data suggests a good base at 485-490 Levels. Should see a good upmove in this counter. The next Resistance lies at 520.

Strategy:- BUY TATAMOTORS 500 CE@9-11, SLOSS AT 5, TRGT 20

Investment Pick - Kansai Nerolac Ltd.

Kansai Nerolac Paints Ltd (KNPL) posted mixed numbers for Q2FY22. Its revenue grew by 17.1% YoY to Rs 1,619.6cr, while its EBITDA and PAT witnessed de-growth of 39% YoY and 48% YoY. Demand from decorative was steady while lower demand from the industrial segment impacted the performance.

KNPL is one of the leaders in the industrial paint segment wherein it garners 40-45% revenue from the industrial segment while remaining from decorative. Going ahead, the company’s strategy is to innovate products in both its segments, expand reach, and focus on product mix as well as gain market share from unorganized segments. Besides, focus to remain on managing cost and operating efficiency which will help in margin growth. Over the medium to long term, we have a positive view on the stock and have maintained a buy with a target price of Rs 705.

Buy - Kansai Nerolac Ltd. @ CMP :- 597.05 Recommendation Price 605 Target 705 Duration 9-12 Months.

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