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Nifty Outlook

Markets started the week on a muted note and lost nearly a percent, tracking mixed global cues. After the flat start, the benchmark gradually inched lower as the day progressed and settled closer to the day’s low. Mostly sectoral indices ended in the red wherein power, banking and auto were the top losers. The broader indices traded mixed and closed on a flat note. Markets are dancing to the global tunes and we don’t see this changing anytime soon. Broadly, we reiterate our positive bias till Nifty upholds the 16,800 zone however the key is to identify the sectors/stocks which are showing resilience and add them on dips.

News

KEC International secured new orders of Rs 1,005 cr across its various businesses including the Transmission & Distribution (T&D) business which has secured orders for supply of towers and poles in Americas. The railways business secured orders in conventional/ emerging segments in India including overhead electrification (OHE) – order for overhead electrification (OHE) and associated works and order for a composite project including track laying, OHE and associated civil works

Ratnamani Steel announced that it has received a new domestic line pipe order for Rs 591 crore from the oil & gas sector, to be executed between August 2022 to March 2023.

Embassy Office Parks REIT has received a green loan certification in respect of loan facilities amounting to Rs 730 crore raised from Axis Bank from Climate Bonds Initiative.

Derivative Ideas

PVR gained 2.77% and closed at 1754.05 on 21st Mar. The counter trading above its medium term support of 1500, gradually inching higher. Now breaking out above 1735 and trading above its important MAs, the counter is poised to test its resistance at 1800 levels. We recommend to go Long in PVR.

Strategy:- BUY PVR @ 1730-1740, SLOSS AT 1692, TRGT 1800.

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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