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Nifty Outlook

Markets extended yesterday’s rebound and gained over 2%, tracking recovery in global indices. After the flat start, the benchmark inched gradually higher as the day progressed and settled closer to the day’s high. All sectors, barring metal, participated in the move wherein heavyweights like Reliance, HDFC Bank and Infy contributed half of the index gains. In the latter half, short-covering further added to the recovery. The broader markets too participated wherein both Midcap and Smallcap ended higher by 2.4% and 2.1% respectively.

The recent rebound is in line with the global counterparts and it would be too early to call it a reversal. Besides the geopolitical updates, domestic factor i.e. states' election results will also be in focus. We expect volatility to remain high so participants should prefer hedged trades.

News

Zydus Lifesciences announced that its US subsidiary Sentynl Therapeutics Inc acquired global rights for development and commercialisation of BridgeBio Pharma's Nulibry drug. "Sentynl Therapeutics Inc, a US based biopharmaceutical company announced the execution of an asset purchase agreement for the sale of BridgeBio's Nulibry (Fosdenopterin) for injection

Solara Active Pharma has appointed Mr. S. Hariharan as Chief Financial Officer of the company. And approved resignation of Subhash Chand Anand as Executive Director & Chief Financial Officer (ED & CFO) and Director of the company.

Hindustan Unilever announced appointments of Madhusudhan Rao as Executive Director, Beauty & Wellbeing and Personal Care, HUL and Deepak Subramanian, will be appointed as Executive Director, Home Care, HUL.

Derivative Ideas

IEX gained 4.01% and closed at 222.8 on 9th Mar. The stock after taking the support at its important support zone around 200-205, saw a good up move. Now after breaking out above 218, the counter is poised to test its resistance at 235 levels. We recommend to go Long in IEX.

Strategy:- BUY IEX @ 217-219, SLOSS AT 211, TRGT 230.

Religare New Year Pick - INOX Leisure Ltd.

Incorporated in 1999 and part of the INOX Group, INOX Leisure Ltd. (INOX) is the second-largest multiplex chain operator in India. The company’s screen additions have grown multi-fold over the past 10 years, from 91 screens in FY09 to 667 screens currently (Q3FY22 end) having a wide presence in ~70 cities with a seating capacity of 1,50,000+.

We like INOX in this space given its focus on enhancing the consumer experience, continued emphasis on expansion, effort on increasing spending per head, and increasing footfalls. We recommend a Buy on the stock and arrive at a target price of Rs. 495 (target EV/EBITDA multiple of 13x). Some of the key risks to our estimates include a) resurgence in COVID cases and b) slower than expected revival in footfalls.

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