IGI Logo

Nifty Outlook

Markets resumed the corrective phase after a day of pause and lost half a percent. The move was lackluster for most of the session and the benchmark hovered in a narrow range amid mixed cues. However, selling pressure in the last one and a half hours dragged the index to the day’s low. Consequently, the Nifty closed around 17,415; down by 0.5%. Amid all, sectoral indices traded mixed wherein IT, auto and FMCG ended lower while media, finance and PSU banks were on the positive side.

The news of the COVID situation worsening globally has started weighing on the sentiment along with the inflation fear. And since there’s no major event on the domestic front, markets will continue to take cues from global counterparts. At the same time, the scheduled monthly expiry would keep the traders busy on Thursday. We suggest continuing with negative bias on the index while keeping a check on leveraged positions. Nifty has next major support around 17,150 zone.

News

* Cadila Healthcare announced that it has entered into a manufacturing license and technology transfer agreement for its Plasmid DNA based Covid-19 (ZyCoV-D) vaccine with Enzychem Lifesciences of Republic of Korea.

* Thermax bags an order of Rs 830cr from an Indian power private sector company to set up flue gas desulphurisation (FGD) systems for their three units of 660 MW capacity each in the state of Uttar Pradesh.

* InfoEdge India announced that it has entered into an agreement to invest about Rs. 30 Cr. in Greytip Software Private Ltd.

Derivative Ideas

NIFTY Lost around 0.5% on 24th Nov. Huge Call Writing was seen beyond 17500 Levels , so we expect NIFTY to face Resistance around 17650.

Strategy:- SELL NIFTY (2 Dec) 17800 CE@30-38, SLOSS AT 52, TRGT 10.

Investment Pick - Kansai Nerolac Ltd..

Kansai Nerolac Paints Ltd (KNPL) posted mixed numbers for Q2FY22. Its revenue grew by 17.1% YoY to Rs 1,619.6cr, while its EBITDA and PAT witnessed de-growth of 39% YoY and 48% YoY. Demand from decorative was steady while lower demand from the industrial segment impacted the performance.

KNPL is one of the leaders in the industrial paint segment wherein it garners 40-45% revenue from the industrial segment while remaining from decorative. Going ahead, the company’s strategy is to innovate products in both its segments, expand reach, and focus on product mix as well as gain market share from unorganized segments. Besides, focus to remain on managing cost and operating efficiency which will help in margin growth. Over the medium to long term, we have a positive view on the stock and have maintained a buy with a target price of Rs 705.

Buy - Kansai Nerolac Ltd. @ CMP :- 588.15 Recommendation Price 605 Target 705 Duration 9-12 Months.

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