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Nifty Outlook

Markets ended marginally higher in a volatile trading session, taking a breather after the recent surge. The benchmark indices started on a positive note, tracking supportive global cues however profit taking at higher levels capped upside.

The MPC’s monetary policy review outcome was largely in line with the expectations thus failed to trigger any major reaction. On the sectoral indices, a mixed trend was witnessed wherein PSU banks, pharma and metal gained noticeable traction while auto and IT traded subdued. Amid all, the Nifty ended with gains of 0.2% at 14,924 levels. Nifty tested another milestone of the “15,000” mark today.

As the major events are behind us i.e. the Union budget and monetary policy meet, the focus will shift back to fundamentals as well as global cues. We might see some consolidation in the index early next week but there’ll be no shortage of trading opportunities on the stock-specific front. Traders should align their positions accordingly and avoid contrarian trades.

News

* Cadila Healthcare posted Q3FY21 revenue of Rs 3,795.6cr, an increase by 4.3%. The company’s net profit rose 41% to Rs 527.2cr as against Rs 374cr YoY.

* M&M reported revenue increase of 16% YoY to Rs 14,056.5cr. Its net profit grew to Rs 530cr as against Rs 380.2cr YoY.

* Kolte-Patil Developers posted Q3FY21 earnings wherein its revenue was up 46.1% YoY at Rs 190.3cr. Its net profit stood at Rs 22.5cr as against loss of Rs 13.1cr

Derivative Ideas

TORNTPHARM FUT added around 8% in open interest addition as LONG buildup was seen in it in till closing time. Current chart pattern also indicates further up move in its price. We suggest buying TORNTPHARM as per below levels.

Strategy:- BUY TORNTPHARM BETWEEN 2720-2730 SL 2680 TARGET 2820.

Investment Pick - Dabur India Ltd.

* Dabur India reported healthy set of numbers for Q3FY21 its revenue grew by 16% YoY to Rs 2,729 cr driven by strong volume growth of 18.1% in domestic FMCG business. Its EBITDA grew by 16.5% YoY to Rs 574 cr while margin expansion was flat. PAT grew by 17.8% YoY to Rs 494 cr on the back of lower interest expense.

* Dabur’s portfolio is gaining traction each passing quarter largely driven by its focus on health and hygiene segment, new product launches, heavy investment behind their power brands and expanding in rural area. In addition cost optimisation measures and improving go-to-market approach is well supporting company’s growth. We remain positive on the company’s long term growth plans and have maintained a Buy on the stock with a target price of Rs 616.

Buy Dabur India Ltd @ 9-12 Months  CMP 526.1 TGT 616

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