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Nifty Outlook

Markets extended the momentum for yet another session and gained nearly a percent. After the initial hiccups, the benchmark gradually inched higher and made a new record high as well. Upbeat global cues combined with decent quarterly earnings from companies supported the rally. Consequently, the Nifty ended at 14,790 levels, higher by 1%.

Amongst the broader markets midcap and smallcap outperformed and ended in the range of 1.4-1.5%. All the other sectoral indices, barring FMCG and realty, ended in the green. The budget has completely turned the market mood and the ongoing earnings season has also been decent so far. We reiterate our bullish view on markets and suggest continuing with the “buy on dips” approach.

News

* Jubilant Foodworks Q3FY21 revenue stood at Rs 1,069cr, a decline of 0.2%. Its net profit grew by 21.7% to Rs 123.9cr.

* Hawkins Cookers reported Q3FY21 numbers wherein revenue grew by 19.6% at Rs 231cr and net profit was up 7.7% YoY at Rs 24.2cr.

* Deepak Fertilizers Q3FY21 revenue was up 29.3% to Rs 1,447.1 cr. its net profit came in at Rs 87.6cr as against Rs 30cr YoY.

Derivative Ideas

JSWSTEEL 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 JSWSTEEL as per below levels.

Strategy:- BUY JSWSTEEL BETWEEN 385-388 SL 374 TARGET 405.

Investment Pick - Nippon Life India Asset Management Ltd

* Nippon Life AMC reported decent set of numbers in Q3FY21 which was largely in-line with our expectations. Its mutual fund QAAUM grew by 6.5% QoQ led by healthy growth in both equity as well as debt AUM which grew by 7.3% and 5.3% QoQ. Further, despite lower yields, PAT grew by 42.7% QoQ driven by higher other income and cost saving initiatives.

* Going forward, we remain positive on Nippon AMC as it plans to regain its lost market share through a series of measures. In the long run, its consistent increase in equity assets, industry leading retail assets and strong presence in B-30 cities augurs well for the growth prospects of the company. Recommend Hold.

Buy Nippon Life India Asset Management Ltd @ 9-12 Months CMP 322.15 TGT 348

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