IGI Logo

Nifty Outlook

Markets extended gains in continuation to the last week and rose nearly half a percent amid mixed cues. After the flat start, the benchmark inched higher in the first half, thanks to strong traction in heavyweights from auto, banking and realty pack. Consequently, the Nifty touched a new milestone of “18,000” levels however profit taking in the latter half trimmed the gains and it closed at 17,946 levels. On the sector front, barring IT (down by 3.4%), all the other indices ended with decent gains wherein auto, media and realty were the top gainers. The broader markets ended with healthy gains in the range of 0.6-1.1%.

The recent buoyancy in the auto and banking pack, which were acting as laggards, has again fueled the momentum. Going ahead, domestic factors such as macro data, Q2FY22 earnings (largely from IT majors) will dictate the trend. Besides, global cues and movement in the currency market will also be on the radar. We suggest participants to be selective and continue with the “buy on dips” approach.

News

* Affle India announced that it has received issue notification for the grant of two patents from US Patent & Trademark Office.

* Radico Khaitan unveiled two new luxury products in the brown and white spirit categories.

* Saregama India posted Q1FY22 revenue of Rs 145cr, up by 34.2% YoY. Its net profit jumped by 17% YoY to Rs 33.8cr.

Derivative Ideas 

NIFTY FUT has shed around 1% in open interest as short covering was seen in it. Current chart pattern also indicates further upmove in its price. We suggest buying call option as per below levels.

Strategy:- Buy nifty 14th OCT 18000 CE@60-63, sloss at 40, trgt 100.

Investment Pick - The Ramco Cements Ltd

Ramco Cements Ltd (TRCL) is the fifth-largest cement producer in India and the most popular cement brand in South India. The company is six decades old and manufactures ready mix concrete, dry mortar products and various grades of cement. It has a presence across ten states of India with four integrated plants and six grinding units. Apart from South India, it is growing its presence in East India, Sri Lanka and the Maldives.

We have a positive outlook given its strong brand name, leadership position in South India and product portfolio. In addition, its focus on expanding capacity, increasing utilization levels and cost-saving initiatives would further help in improving profitability. We estimate its Revenue/EBITDA/PAT to grow at a CAGR of 12%/13.5%/15.5% respectively over FY21-24E and have initiated a Buy on the stock with a target price of Rs 1,237.

Buy - The Ramco Cements Ltd @ 9-12 Months CMP 998.85 TGT 1,237

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 Disclaime