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Nifty Outlook

Markets started on a buoyant note and gained nearly 2%, after taking a breather in yesterday’s session. Supportive global cues led to gap-up opening however caution ahead of the US Fed meeting outcome capped the movement as the day progressed. Meanwhile, strong participation from the broader markets kept the participants busy. Among the benchmark indices, the Nifty index inched closer to the 17,000 mark and finally settled at 16,975 levels.

Markets will first react to the US Fed meeting outcome in early trade on Thursday. Apart from the global updates, the scheduled weekly expiry would further add to the volatility. We recommend booking some profits on the rise, citing immediate hurdles around the 17,150 zone and focusing on identifying opportunities in sectors that are trading in sync with the benchmark.

News

* The Singapore Exchange has selected TCS BaNCs solution to power the trading link NSE IFSC-SGX Connect at special economic zone Gujarat International Finance Tec-City, which will allow Singapore traders and other international investors to trade in Nifty derivatives in real time.

* Unichem Laboratories announced that it has received ANDA approval from USFDA to market a generic version of Bystolic® that is Nebivolol Tablets 2.5 mg, 5 mg, 10 mg, and 20 mg, which is used for the treatment of hypertension.

*  NBCC India announced that it has secured the total business of Rs. 104.4cr in the month of February, 2022.

Derivative Ideas

ITC gained 2% and closed at 242.6 on 16th Mar. ITC has been in continuous uptrend since it took support at 210 levels. Now trading above its resistance at 238 with trend line breakout, the counter is poised to see higher levels. We recommend to go Long in ITC.

Strategy:- BUY ITC @ 238-240, SLOSS AT 233, TRGT 250.

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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