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Nifty Outlook

Markets ended with modest gains in a volatile trading session. After the initial downtick, the benchmark recovered in no time and remained range-bound thereafter. It finally settled around the upper band of the range to close at 15,173 levels. The mixed trend continued on the sectoral front as Capital Goods, Consumer Goods and Auto ended with losses whereas Oil & Gas, Metal and Telecom ended with gains.

Amid all, the broader indices witnessed healthy traction as both midcap and smallcap ended higher by 0.4% and 1%. We reiterate our bullish view on markets however traders should maintain extra caution in the selection of stocks now. Participants would be actively tracking key macroeconomic data like IIP, CPI and WPI data for cues on Friday. A decisive break above 15,250 would trigger further up move else consolidation will continue.

News

* Coal India reported its Q3FY21 numbers wherein revenue was up 2.1% YoY to Rs. 23,686 cr. Its consolidated net profit was down 21.4% YoY to Rs. 3085 cr.

* L&T announced that its transportation Infrastructure business has secured an order to extend the mainline corridor of the Mauritius Metro by 3.4 km from Metro Express Limited, Mauritius.

* Greenply Industries reported its numbers wherein revenue was down 1.6% YoY to Rs. 340 cr. Its net profit was up 17.2% YoY to Rs. 25 cr.

Derivative Ideas

AMBUJACEM FUT added around 4% 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 AMBUJACEM as per below levels.

Strategy:- BUY AMBUJACEM BETWEEN 270-273 SL 263 TARGET 288.

Investment Pick - Britannia Industries Ltd.

Britannia Industries (BRIT) posted mixed numbers wherein revenue was below our expectation while profit grew strong. Revenue came in at Rs 3165.6cr, up by 6.1% YoY. On operational front, its EBITDA grew by 21.7% YoY to Rs 611.5cr, while margin expanded by 248bps on the back of cost efficiencies measures.

The company reported healthy growth of 22.4% YoY in net profit at Rs 452.6cr with margin expansion of 190bps YoY to 14.3%. Going forward, we remain positive on the company’s long term growth as the focus would be enhancing sales, improving margins via cost efficiency measures and strengthening distribution reach. Maintain a Buy.

Going forward, BRIT strategy would be to drive strong growth by launching new and innovating products, focus on brand building and strengthening distribution reach. Besides its efforts on improving margins via cost efficiency would be its core agenda. Apart from this, strong growth momentum from rural and international businesses will continue to support and lead to market share gains.

Further along with the optimistic management plan the company has strong balance and decent cash flow which would aid growth. Thus, we have a positive view on the stock for long term and have maintained a buy rating on the stock with a target price of Rs 4,265.

Buy Britannia Industries Ltd @ 9-12 Months CMP 3,462.75 TGT 4,265

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