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Nifty Outlook

Markets remained range bound for yet another session and ended almost unchanged. After the flat start, the benchmark hovered in a narrow band till the end however movement due to the scheduled monthly derivatives expiry kept the participants busy. Among the key indices, the Nifty index ended on a flat note at 16,637 levels. The broader markets outperformed wherein both Midcap and Smallcap ended marginally higher. On the sectoral front, a mixed trend was witnessed wherein metal and auto ended with losses whereas capital goods, consumer goods and realty ended with gains.

The rotational buying in select index majors across sectors is helping the index to maintain the positive bias and inch higher. However, the momentum is still missing due to the continuous underperformance of the banking index. Considering the scenario, we reiterate our view to restrict naked leveraged positions and prefer index majors over others.

News

* Marksans Pharma has received USFDA approval for an Abbreviated New Drug Application for Acetaminophen Extended-Release Tablets USP, 650 mg (OTC). The company will manufacture the products at its USFDA approved solid oral dosage facility located at Goa.

* Bank of India approves Rs 3,000cr QIP, sets floor price at Rs 66.19 per share.

*  Thermax Babcock and Wilcox Energy Solutions which is wholly owned subsidiary of Thermax has concluded a Rs 293cr order for a boiler package comprising 3 x oil & gas fired boilers on EPC basis for a refinery and petrochemical complex in western India.

Derivative Ideas 

TRENT SEPT FUTS added around 26% 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 TRENT as per below levels.

Strategy:- BUY TRENT BETWEEN 930-935 SL 920 TARGET 965.

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 407.80 TGT 492

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