IGI Logo

Nifty Outlook

Markets extended gains for the second consecutive day and rose over one and a half percent. Firm global cues triggered a gap up start which further strengthened following the dovish stance of the RBI. Consequently, the Nifty index closed around the day’s high to settle at 17,469 levels.

The broader markets as well as all the sectoral indices ended in the green. As RBI policy is behind us, the focus will shift back to global cues and upcoming macro data (IIP & CPI). Further, as the number of IPOs is lined up, primary markets will keep investors busy. Given the high volatility in the market, we would remain cautiously optimistic on the markets.

News

* ABB announced that it has partnered with Indore Smart City Development Ltd. to deploy next-generation digital technology that enables the continuous supply of electricity to homes and businesses.

* Larsen & Toubro Infotech announced that it has launched Fosfor, the Data-to-Decisions Product Suite. Fosfor helps businesses monetize data at speed and scale by providing best-in-class capabilities.

* TCS announced that it has been recognized as a UK Superbrand for the seventh consecutive year. The recognition acknowledges the company’s exceptional business growth, its position as the top strategic IT player by revenue in the UK, its number one ranking in customer satisfaction, and its community initiatives.

Derivative Ideas

NIFTY gained 1.71% on 8th Dec. BANKNIFTY outperformed by gaining 1.82%. Fresh Longs is being seen in BANKNIFTY. We expect it to continue its rally till 38000.

Strategy:- BUY BANKNIFTY 38500 CE(16 DEC) @72-75, SLOSS AT 40 TRGT 145.

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 :- 584.95 Recommendation Price 605 Target 705 Duration 9-12 Months.

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.religareonline.com/disclaimer

SEBI Registration number is INZ000174330

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer