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Nifty Outlook

Markets regained momentum after a minor pause in yesterday’s session and closed higher by nearly a percent. The benchmark opened in the green and gradually inched higher as the day progressed led by a surge in FMCG, IT and realty stocks. Finally, the Nifty ended near day’s high at 17,234 levels, up by 0.9%. On the sector front, except for auto and PSU banks, all the other indices posted gains. The broader markets too traded in line with the benchmark.

We’re seeing buying on every dip across sectors which shows that the bulls are in control. Besides the supportive global cues, the recent positives from the domestic front viz. the pace of the vaccination drive and further reopening by the states are fueling the momentum. We’re now eyeing 17,500 in Nifty. Amid all, we reiterate our positive yet cautious stance and suggest focusing on accumulating quality stocks on dips.

News

* Natco Pharma Canada Inc., a subsidiary of Natco Pharma, announced the launch of PrNAT-LENALIDOMIDE Capsules, the first generic alternative to Revlimid® to be approved by Health Canada. PrNAT-LENADLIDOMIDE is used in combination with dexamethasone for the treatment of multiple myeloma in patients who are not eligible for stem cell transplant.

* Adani Ports and Special Economic Zone during the month of August, 2021 handled a cargo volume of 23.32 MMT at its ports thus registering a 21% growth on Year on Year basis.

* Dr. Reddy's Laboratories announced that Reddy-Lenalidomide, a generic equivalent to Revlimid® (lenalidomide) capsules, is approved by Health Canada and has been launched in the Canadian market.

Derivative Ideas 

NIFTY FUTS added around 5% in open interest in as LONG buildup was seen in it. Current chart pattern also indicates further up move in its price. We suggest buying in NIFTY 9 SEP 17300 CE as per below levels.

Strategy:- BUY NIFTY 9 SEP 17300CE@60-65 SLOSS AT 30 TRGT 110.

Investment Pick - Nippon Life India Asset Management Ltd.

Incorporated in 1995, Nippon Life Asset Management Company (NAM) is one of the leading AMCs in India with a total AUM of ~Rs. 3.79 tn. It is involved in managing the mutual fund (AUM of Rs. 2,442 bn) and managed accounts including Portfolio Management Services (PMS), Alternate Investment Funds (AIF), Pension Funds and Offshore Funds.

We continue to remain constructive on the Indian mutual fund industry given its low penetration level as compared to major economies (11% AUM to GDP ratio v/s world average of 62%). Further, NAM’s consistent increase in equity assets, industry-leading retail assets, focus on growing SIP book and strong presence in B-30 cities augurs well for the growth prospects of the company. We recommend a Buy on the stock with a target price of Rs. 492.

Buy Nippon Life India Asset Management Ltd @ 9-12 Months CMP 412.8 TGT 492

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