IGI Logo

Nifty Outlook

Markets plunged sharply on global COVID fears and lost nearly 3%. The bears were in control from the beginning as a new variant of COVID raised concerns globally and they further tightened their grip as the session progressed. Selling pressure was widespread and all sectors barring pharma ended with deep cuts. The broader indices also witnessed a similar trend and lost nearly 3% each.

Though the COVID is not new to the market, the reaction is largely in response to the news of a different variant while the US and Europe are already struggling. The way markets have closed on Friday, we expect more pain in the coming sessions. Apart from the global COVID-related update, markets will also be eyeing the domestic data like auto sales, GDP numbers, etc for cues. Since Nifty has slipped below the critical support zone of 17,150, the next crucial support comes at 16,700. Traders should continue with the bearish bias and use the bounce to create shorts. Investors, on the other hand, should see this as an opportunity and start accumulating quality stocks in a staggered manner.

News

* ITC agrees to invest 16% in Mother Sparsh Baby Care Pvt Ltd, a premium ayurvedic and natural personal care brand in the D2C space with a focus on the mother and baby care segment.

* Ramco Cements announced that its two mines viz. Melavenkateswarapuram Limestone Mine, RR Nagar and Pudupalayam & Periyangalur Limestone Mine, Ariyalur conferred the FIVE STAR award during the 56 National Conclave on Mines & Minerals.

* Vakrangee Ltd announced that it has alliances with Choice Equity Broking Pvt. Ltd. to offer complete online trading services across its platform (physical network & digital app).

Derivative Ideas

NIFTY shed around 2.9% on 26th Nov. NIFTY is now trading below its crucial support of 17200. Bias should be on the Negative Side till it trades above 17200.

Strategy:- SELL NIFTY (2 Dec) 17500 CE@38-43, SLOSS AT 58, TRGT 10.

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 :- 579.9 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