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Nifty Outlook

Markets posted strong gains and settled around the day’s high amid mixed cues. Initially, the bias was slightly on the negative side in continuation to Monday’s fall however a strong surge in the select index majors from IT, energy and banking space completely changed the tone in the latter half. Consequently, the Nifty index ended higher by 1.2% at 17,315 levels. Meanwhile, the broader indices underperformed as both Midcap and Smallcap ended on a flat note.

We reiterate our positive yet cautious view on markets amid global uncertainty. A decisive break above 17,350 in Nifty would pave for a further surge towards 17,500-17,700 levels. And, we feel the banking pack holds the key from hereon. Participants should align their positions accordingly.

News

* G R Infraprojects has emerged as L-1 bidder for the tender invited by National Highways Authority of India for "4-Laning of UjjainBadnawar Section from km 26.9 to km 96.00 (Length-69.1 km) in the State of Madhya Pradesh on Hybrid Annuity Mode.

* BEML in its meeting held yesterday has declared interim dividend of Rs 5 per equity share of Rs 10 each (i.e. 50% of paid up share capital) for FY22.

* Hester Biosciences is all set to expand into the rapidly growing Pet Care sector this April. India has the fastest-growing pet care market worldwide, with it growing by 14% in 2022, making this an exciting and valuable opportunity for the poultry vaccine giant.

Derivative Ideas

M&MFIN gained 1.97% and closed at 160.4 on 22nd Mar. The stock has been inching higher after it started trading above its support which is at 140. Now after giving the trend line breakout with 50 Day EMA confluence, the counter is poised to test its resistance at 170 levels We recommend to go Long in M&MFIN.

Strategy:- BUY M&MFIN @ 158-159, SLOSS AT 153, TRGT 168.

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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