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Nifty Outlook

Markets started the week on a positive note in continuation to the prevailing uptrend and ended marginally higher. The benchmark opened gap-up following supportive global cues however mixed trends across heavyweights capped the move. Healthy buying interest in IT pack and Reliance kept the tone positive however subdued performance of banking majors capped the upside as the day progressed. Finally, Nifty settled at 13,777.8; up by 0.3%. The broader markets outperformed the benchmark as Midcap and Smallcap ended higher by 0.4% and 1% respectively.

Markets are steadily inching higher, tracking favorable global markets and supportive domestic sentiment. We may see some consolidation ahead and it would be healthy however there’ll be no shortage of trading opportunities on the stock-specific front. Considering the recent momentum, it’s prudent to look for strong counters to accumulate on dips.

News

* Ashoka Buildcon has received the letter of award from Adani Road Transport for the execution of civil and associated works on engineering, procurement & construction (EPC) for six- laning of the national corridor NH-19 from Pangarh to Palsit in West Bengal. The accepted EPC contract price is Rs 1,567.5 cr.

* ICICI Lombard has received regulatory and other approvals from the Insurance Regulatory and Development Authority of India (IRDAI) for the demerger of the general insurance business of Bharti AXA General.

* Welspun India has now become the first Indian company to receive one of the stringent and most recognized quality approval i.e. US Food and Drug Administration (FDA) 510 (k) clearance for its 3 Ply Surgical Masks.

Derivative Ideas 

CANFINHOME FUTS added around 14% 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 CANFINHOME as per below levels.

Strategy:- BUY CANFINHOME BETWEEN 580-585 SL 565 TARGET 625.

Investment Pick - Nippon Life India Asset Management Ltd.

Incorporated in 1995, Nippon Life Asset Management Company (NAM) is one of the leading AMCs in India with a total AUM of ~Rs. 3.79 tn. It is involved in managing the mutual fund (AUM of Rs. 2,442 bn) and managed accounts including Portfolio Management Services (PMS), Alternate Investment Funds (AIF), Pension Funds and Offshore Funds.

We continue to remain constructive on the Indian mutual fund industry given its low penetration level as compared to major economies (11% AUM to GDP ratio v/s world average of 62%). Further, NAM’s consistent increase in equity assets, industry-leading retail assets, focus on growing SIP book and strong presence in B-30 cities augurs well for the growth prospects of the company. We recommend a Buy on the stock with a target price of Rs. 492.

Buy Nippon Life India Asset Management Ltd @ 9-12 Months CMP 421.3 TGT 492

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