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Nifty Outlook

Markets traded lackluster and ended almost unchanged, taking a breather after the recent up move. The benchmark opened marginally in the green however profit booking in heavyweights from the banking and IT pack dragged the indices lower. However, buying in pharma, realty and metal majors helped the index to pare the intraday losses and end flat. Eventually, the Nifty closed at 15,923 levels. Meanwhile, the outperformance continued from the broader indices which kept the traders busy.

We reiterate our positive yet cautious stance on the market and suggest using dips to add quality stocks. In absence of any major event, we suggest keeping a close watch on earnings and performance of the global markets for cues.

News

* HDFC AMC Q1FY22, Revenue was up 0.8% at Rs 507.1cr QoQ. Its net profit grew 9.3% to Rs 345.4cr QoQ.

* JMC Projects India, a subsidiary of Kalpataru Power Transmission and a leading Civil Engineering and EPC player announced that it has secured new orders worth Rs 1,624cr.

* NIIT announced that it has entered into a partnership with Sushant University, situated in Gurugram, to offer their upcoming batches of BCA and B-Tech in Computer Science specializations in Banking & Finance, and Stack Route - Full Stack Product engineering respectively.

Derivative Ideas

MCDOWELL-N FUTS added around 24% in open interest as LONG buildup was seen in it. Current chart pattern also indicates further up move in its price. We suggest buying in MCDOWELL-N in cash as per below levels.

Strategy:- BUY MCDOWELL-N BETWEEN 664-665 STOPLOSS 656 TARGET 685.

Investment Pick - CSB Bank Ltd.

Established in 1920, CSB Bank Ltd (known as The Catholic Syrian Bank) is one of the oldest private sector banks in India. It has a significant network in Kerala, Tamilnadu, Karnataka and Maharashtra. At present, 90% of the branches are in these four states and the remaining 10% is spread across other states in India. The bank operates mainly in four business areas namely SME banking, retail banking, wholesale banking and treasury operations.

We believe CSB bank is well placed as it has a strong gold loan book, prudent management team and steady financials with improved asset quality. Further, a well-planned strategy like betting on less risky businesses such as agriculture, food & service, etc. and avoiding risky unsecured loans augurs well for future growth. From a long term perspective, we are optimistic on the company’s growth prospects thus initiating a Buy on the stock with a target price of Rs 432.

Buy - CSB Bank Ltd @ 9-12 Months CMP 351.25 TGT 432.

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