IGI Logo

Nifty Outlook

Markets remained under pressure for yet another session and lost nearly half a percent. After the initial uptick, the selling pressure resumed as the day progressed which led the Nifty to end lower by 0.3% at 18,117 levels. The broader markets also traded in sync with the benchmark and both mid cap and small cap ended lower by 1% each. A mixed trend was witnessed on the sectoral front wherein realty and banking ended marginally higher while healthcare, metal and IT settled in the red.

Markets will react to the Reliance and ICICI Bank results in early trade on Monday. Besides, global cues and movement in crude oil prices would be actively tracked. On the benchmark front, we expect Nifty to find support around 17,950 zone while 18,200-18,400 zone would act as a hurdle. While traders are complaining of excessive volatility across the board, the recent fall is helping investors to accumulate quality stocks which are available at a good bargain.

News

* PVR reported its numbers wherein revenue was at Rs 120.3 cr against Rs 40.5 cr. Its consolidated net loss was at Rs 153.1 cr in Q2FY22 against loss of Rs 184 cr.

* Polycab India revenue jumped 48% YoY to Rs. 3,129 cr. Its net profit was down 10.2% YoYto Rs. 198 cr.

* Supreme Industries revenue was up 40.3% to Rs. 1,929 cr. Its net profit was up 30.7% YoY to Rs. 229 cr.

Derivative Ideas 

NIFTY FUT has shed around 2% in open interest as fresh long unwinding was seen in it. Current chart pattern also indicates further resistance in nindex at 18600 levels.

Strategy:- Sell NIFTY 18600 CE@30-35, sloss at 55, trgt 10.

Investment Pick - The Ramco Cements Ltd

Ramco Cements Ltd (TRCL) is the fifth-largest cement producer in India and the most popular cement brand in South India. The company is six decades old and manufactures ready mix concrete, dry mortar products and various grades of cement. It has a presence across ten states of India with four integrated plants and six grinding units. Apart from South India, it is growing its presence in East India, Sri Lanka and the Maldives.

We have a positive outlook given its strong brand name, leadership position in South India and product portfolio. In addition, its focus on expanding capacity, increasing utilization levels and cost-saving initiatives would further help in improving profitability. We estimate its Revenue/EBITDA/PAT to grow at a CAGR of 12%/13.5%/15.5% respectively over FY21-24E and have initiated a Buy on the stock with a target price of Rs 1,237.

Buy - The Ramco Cements Ltd @ 9-12 Months CMP 963.9 TGT 1,237

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 Disclaime