IGI Logo

Nifty Outlook

Markets staged a rebound and gained over a percent, taking a breather after five days of fall. Initially, the benchmark opened lower citing unsupportive global cues however the steady recovery in FMCG, metals and banking pared all the intraday losses and pushed the index in the green as well. As a result, the Nifty ended near day’s high at 14,744 levels, up by 1.3%. The broader markets ended in positive in the range of 0.4-1.4%. On the sector front, except capital goods and realty, all the other sectoral indices ended with decent gains.

We feel participants shouldn’t read too much into today’s rebound and wait for further clarity. A decisive close above 14,900 in Nifty might result in further surge else profit taking would resume. In absence of any major event, COVID-related updates and performance of the global markets will remain in focus. Meanwhile, participants should maintain extra caution in the selection of stocks and risk management.

News

*The Russian Direct Investment Fund and Stelis Biopharma Pvt. Ltd., the biopharmaceutical division of Strides, have partnered to produce, and supply a minimum of 200mn doses of the Russian Sputnik V vaccine against coronavirus sufficient to vaccinate 100mn people.

*ABB India announced that its electrification products are helping residents of Shimla to get an uninterrupted supply of water. Its softstarter device ensures smooth water movement while torque control minimizes leakage and pipe damage, eliminating pressure surges.

*Dilip Buildcon has received letter of acceptance for two new HAM projects under Bharatmala Pariyojana, phase I in the state of Tamil Nadu and union Territory of Puducherry, order worth Rs. 2241cr.

Derivative Ideas

GAIL FUTS added around 12% in open interest addition as long buildup was seen in it till closing time. Current chart pattern also indicates further up move in its price. We suggest buying GAIL in cash as per below levels.

Strategy:- BUY GAIL BETWEEN 136-137 SL 133 TARGET 144.

Investment Pick - Kansai Nerolac Paints Ltd.

Established in 1920, Kansai Nerolac Paints Limited (KNPL) is a subsidiary of Kansai Paint Co. Ltd., Japan. It is the second largest coating company in India and a market leader in Industrial Coatings. KNPL has well established products in both the decorative and industrial segments. It has pan-India presence with 6 manufacturing plants, 104 depots and 27,500+ customer network. In international markets it expanded in Nepal, Bangladesh and Sri-lanka.

Going ahead, its strategy is to grow in both segments as well as gain market share from unorganised players on the back of positive sector trends, innovative products, focus on non-auto segments, increase distribution network and expand in newer geographies and in semi-urban and rural areas. Moreover its recent foray into adhesives and construction chemicals segment would aid benefits in the coming quarters. We have a positive view on KNPL hence we are initiating with a Buy rating on the stock with a target price of Rs. 705.

Buy Kansai Nerolac Paints Ltd @ 9-12 Months CMP 531.75 TGT 705

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer http://ex.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