IGI Logo

Nifty Outlook

Markets oscillated in a range on the weekly expiry and finally ended marginally higher. Initially, the benchmark opened positive amid supportive global cues but gains fizzled out due to profit booking in banking, IT and realty packs. As the day progressed, healthy buying in FMCG, media and metals helped markets to recover. Finally, the Nifty ended the volatile session higher by 0.3% at 17,517 levels. The broader markets too ended with positive bias in the range of 0.6-1.2%.

All eyes will be on crucial macro data (CPI & IIP) outcome which may further provide some direction to the markets. Meanwhile, the focus will remain on the global cues and updates regarding the new variant. We reiterate our cautious yet positive stance on the markets and suggest traders to focus on managing risk.

News

* Dr. Reddy’s Laboratories announced the launch of Valsartan Tablets, USP, a therapeutic equivalent generic version of Diovan® (valsartan) Tablets approved by the USFDA.

* TVS Motor Company announced its new distribution partnership with Active Motors SA, a subsidiary of Grupo Q, for Nicaragua and Costa Rica to expand its business in Central America further. Active Motors SA will support TVS Motor with dedicated sales, service, spares and customer relationship management.

* Mindtree announced that it has been named a major contender in the Everest Group, internet of things supply chain solutions, PEAK Matrix® Assessment 2022.

Derivative Ideas

NIFTY gained 0.27% and ended flat on 9th Dec. Fresh Longs is being seen in NIFTY FUT.

Strategy:- BUY NIFTY 17600 CE(16 DEC) @70-75, SLOSS AT 30, TRGT 125.

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 :- 591.4 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