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Nifty Outlook

Markets remained volatile for yet another session and ended marginally lower. The looming uncertainty around Russia-Ukraine kept the participants on the edge till the end. Besides, the weekly expiry further added to the chopiness.Finally, the Nifty ended on a flat note at 17,305 levels. On the sector front, energy and FMCG ended in the green while all the other indices ended lower with PSU bank, pharma and media being the laggards. The broader markets underperformed and ended lower in the range of 0.2-0.9%.

We are just mirroring global counterparts and seeing reaction on updates around the Russia -Ukraine crisis. Since there's no clear indication over the next directional move yet, participants should stay light and prefer hedged approach.

News

* Nestle Q4CY21 revenue rose 8% YoY to Rs 3,706cr. Its net profit fell 20% YoY to Rs 387 cr.

* Punjab & Sind Bank said its board has given approval to raise equity capital worth Rs 4,600cr by issuing preference shares to the government.

* Jubilant Ingrevia announced the commissioning of its new Diketene derivatives facility at its manufacturing site in North India at Gajraula, Uttar Pradesh.

Derivative Ideas

ADANIPOWER gained 4.14% and closed at 132 on 17th Feb. The stock has given a breakout at 124 level with good upside volume. Minor hurdle at 133-136 zone, crossing that , the counter is poised to test 150 levels. We recommend to go Long in ADANIPOWER.

Strategy:- BUY ADANIPOWER @ 128-130, SLOSS AT 123, TRGT 140.

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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