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Nifty Outlook

Markets traded buoyant for yet another session and gained over a percent. The beginning was muted amid mixed cues however healthy buying across sectors such as financials, metal and pharma aided Nifty to test a new milestone i.e. 17,000. Finally, it ended near day’s high at 17,100 levels, up by 1%. The broader markets too remained optimistic and ended in the range of 0.6-0.7%.

It’s been a phenomenal move in Nifty as it inched from 16,000 to 17,000 in August month, after spending nearly two months in consolidation. Going ahead, participants will first react to GDP data in early trade on Wednesday i.e. September 1. Besides, the auto sales will also start pouring in. We reiterate our bullish view on markets, with a focus on stock selection. The catch-up move in banking would now be the next deciding factor for the prevailing momentum to continue

News

* Sun Pharma and Cassiopea announce the expiry of the HSR Act process and the successful consummation of their Winlevi® (clascoterone cream 1%) agreement.

* Dr. Reddy's Laboratories announces the launch of Chlordiazepoxide Hydrochloride and Clidinium Bromide Capsules, USP in the U.S. Market

* Subex announced that it has extended its strategic partnership with Robi to upgrade its existing integrated Revenue Assurance and Fraud Management system.

Derivative Ideas 

BANKNIFTY FUTS added around 6% 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 BANKNIFTY 9SEP 37000 CE as per below levels.

Strategy:- BUY BANKNIFTY 9 SEP 37000 CE@160-170 SLOSS AT 110,TRGT 270.

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 424.10 TGT 492

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