IGI Logo

Nifty Outlook

Markets remained volatile and ended marginally lower, in continuation to the prevailing trend. Weak global cues triggered a gap-down start however recovery in the select index majors trimmed the losses as the session progressed. A mixed trend was witnessed on the sectoral front and the broader indices also slipped marginally in the red after the recent surge.

We are seeing mixed signals at present. At one end, participants are cautious due to continuous foreign outflow and mixed earnings announcements. On the other hand, improvement in the macro environment, improving demand and reopening of the economy is signaling positivity. All these factors put together are triggering volatile swings in the market. And, we expect choppiness to remain high due to the scheduled weekly expiry on Thursday. Participants should maintain extra caution in the selection of stocks and focus more on risk management.

News

* Bank Of Baroda Q2FY22 net interest income came in at Rs 7,565.9cr and net profit at Rs 2,087.9cr. Its gross NPA stood at 8.1% as against 8.9% QoQ and net NPA at 2.8% as against 3% QoQ.

* Mazagon Dock Q2FY22 revenue jumped 42.8% YoY at Rs 1,570.1 cr. Its net profit grew 35.8% YoY at Rs 135 cr.

* NIIT Q2FY22 revenue jumped 43.5% YoY at Rs 314.2 cr. Its net profit came in at Rs 52.4cr as against Rs 26cr YoY.

Derivative Ideas

NIFTY FUT has added around 3% in open interest as fresh long build up. Current chart pattern also indicates further upside levels in Index around 18140 levels.

Strategy:- BUY NIFTY 18050 CE@20-30, SLOSS AT 5, TRGT 60.

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 1,069.5 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 Disclaimer