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Nifty Outlook

Markets started the week on a muted note amid weak global cues. After opening a flat, the benchmark inched lower citing profit booking in heavyweights like Reliance, ICICI bank, HUL etc. However, recovery in other index majors pared losses as the session progressed and aided the index to end on a flat note. Consequently, the Nifty closed at 17,355 levels. On the sector front, a mixed trend was witnessed. On the other hand, the broader markets, mid -cap and small-cap, continued their outperformance and ended with gains of 0.5% each.

Markets will first react to CPI data outcome on Tuesday i.e. 14th September. A decisive breakout above 17,400 can again fuel the up move in Nifty else the lackluster move would continue. Amid all, we remain cautiously optimistic and suggest keeping a check on naked leveraged positions.

News

* TCS will help NXP, a world leader in secure connectivity solutions for embedded applications, enrich its user experience and accelerate digital transformation.

* MTAR Technologies announced that it has received an export order for USD 29.82Mn (~Rs 220cr) from Bloom Energy, USA. This order is for export of Yuma Hot Boxes and associated components for Bloom Energy to be delivered in CY22.

* MAS Financial Services specialized in MSME financing, announced that it has partnered with CredAvenue for their co-lending platform.

Derivative Ideas 

AARTIIND UTS added around 4% in open interest in as LONG buildup was seen in it. Current chart pattern also indicates further up move in its price. We suggest buying in AARTIIND as per below levels.

Strategy:- BUY AARTIIND BETWEEN 920-925 SL 900 TARGET 960.

Investment Pick - Phillips Carbon Black Ltd.

Established in 1960, Phillips Carbon Black Ltd (PCBL) is an integral part of the RP-Sanjiv Goenka Group. Over the decades, they have built scale, expanded global footprint and set up world-class R&D facilities to address diverse customer requirements. At present, they are the largest carbon black manufacturer in India with 603,000 MT of annual production capacity. Also, it has four strategically located state-of-the-art plants at Durgapur (West Bengal), Palej & Mundra (Gujarat) and Kochi (Kerala) along with R&D Centre in Asia and Innovation Centre in Europe. Further, PCBL is a strong global player with a significant customer base in 45+ countries and offices in Japan, Germany, Belgium, China, South Korea and Vietnam.

PCBL is a leader in carbon black having a strong presence in India as well as globally. The company’s products, i.e. carbon black and speciality black, demand is likely to be driven by increase in global demand, the focus of the Indian government on the manufacturing sector and recovery in the automobile sector. In addition, its focus on manufacturing high-performance new grades products, improving operating efficiency and increasing specialty black portfolio across inks, coatings and paints segments will further drive growth. We have a positive outlook on the company from the long term perspective and have initiated a ‘Buy’ on the stock with a target price of Rs 306.

Buy - Phillips Carbon Black Ltd @ 9-12 Months CMP 249 TGT 306

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