IGI Logo

Nifty Outlook

Markets took a breather and gained over half a percent, after four days of continuous decline. Initially, participants reacted to the news of the rise in Covid-19 cases in various parts of the globe which led the benchmark indices to open gap down. However, healthy buying in select sectors such as metals, PSU banks, and realty stocks triggered gradual recovery as the day progressed. Finally, the Nifty settled above the 17,500 mark; up by 0.5%. The broader indices also participated in the recovery and gained nearly two percent each.

Participants shouldn’t read much into this rebound and wait for further clarity. Apart from the global cues, the scheduled monthly expiry would keep the volatility high in the coming sessions. We thus recommend continuing with a cautious stance and maintaining a hedged approach.

News

* Alembic Pharmaceuticals announced that it has received final approval from the USFDA for its Abbreviated New Drug Application for Formoterol Fumarate Inhalation Solution, 20 mcg/2 ml per Unit-Dose Vial.

* Triveni Engineering & Industries announced after the company signed a 10-year business agreement with GEAE Technology USA to locally manufacture the LM2500 gas turbine base and enclosure.

* TCS announced that it has expanded its 18-year long strategic partnership with Swiss RE, to help the latter build a more social and open digital workspace leveraging the cloud, to drive greater collaboration and innovation. TCS will help Swiss Re to further develop its future-ready, cloud-based digital workplace using Microsoft technologies and manage the underlying operations.

Derivative Ideas

NIFTY gained around 0.5% on 23th Nov. Call Writing was seen at 17600, so we expect NIFTY to face Resistance around 17650.

Strategy:- SELL NIFTY 17800 CE@25-30, SLOSS AT 55, TRGT 5.

Investment Pick - Kansai Nerolac Ltd..

Kansai Nerolac Paints Ltd (KNPL) posted mixed numbers for Q2FY22. Its revenue grew by 17.1% YoY to Rs 1,619.6cr, while its EBITDA and PAT witnessed de-growth of 39% YoY and 48% YoY. Demand from decorative was steady while lower demand from the industrial segment impacted the performance.

KNPL is one of the leaders in the industrial paint segment wherein it garners 40-45% revenue from the industrial segment while remaining from decorative. Going ahead, the company’s strategy is to innovate products in both its segments, expand reach, and focus on product mix as well as gain market share from unorganized segments. Besides, focus to remain on managing cost and operating efficiency which will help in margin growth. Over the medium to long term, we have a positive view on the stock and have maintained a buy with a target price of Rs 705.

Buy - Kansai Nerolac Ltd. @ CMP :- 589.9 Recommendation Price 605 Target 705 Duration 9-12 Months.

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.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