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Nifty Outlook

Markets traded lackluster and ended marginally higher amidst mixed cues. Initially, upbeat global cues triggered a firm start in the benchmark but lack of follow-up buying and profit-taking in the index majors capped the upside. It hovered in a range till the end however movement on the broader front kept the participants busy. Consequently, the Nifty index ended higher by 0.5% at 15,178 levels. On the sector front, IT, Auto and Capital Goods were the top gainers. The broader indices performed in line with the benchmark wherein both Midcap and Smallcap ended higher by 0.8% and 1% respectively.

Nifty has been hovering within the 14,900-15,300 zone and a decisive break on either side would trigger the next directional move. Meanwhile, traders have no option but to limit their leveraged positions and maintain a stock-specific trading approach. The upcoming macroeconomic data i.e. IIP and CPI combined with cues from the global markets will dictate the trend ahead.

News

*Lupin launched authorized generic version of Alinia (nitazoxanide) Tablets, 500 mg of Romark Laboratories, L.C.

*Dr Reddy announced that The audit of Dr Reddy's API manufacturing plant at Middleburg, New York has been completed by the USFDA and have been issued a Form 483 with 3 (three) observations.

*TVS Motor Company introduced the 2021 TVS Apache RTR 160 4V motorcycle. TVS Apache RTR 160 4V motorcycle gets an advanced engine 159.7 cc, single-cylinder, 4-valve, oil-cooled engine, that now churns out 17.63 PS at 9250 RPM and 14.73 Nm torque at 7250 RPM.

Derivative Ideas

GODREJCP FUTS added around 5% in open interest addition as long buildup was seen in it till closing time. Current chart pattern also indicates further up move in its price. We suggest buying GODREJCP as per below levels.

Strategy:- BUY GODREJCP BETWEEN 687-688 SL 672 TARGET 710.

Investment Pick - Kansai Nerolac Paints Ltd

Established in 1920, Kansai Nerolac Paints Limited (KNPL) is a subsidiary of Kansai Paint Co. Ltd., Japan. It is the second largest coating company in India and a market leader in Industrial Coatings. KNPL has well established products in both the decorative and industrial segments. It has pan-India presence with 6 manufacturing plants, 104 depots and 27,500+ customer network. In international markets it expanded in Nepal, Bangladesh and Sri-lanka.

Going ahead, its strategy is to grow in both segments as well as gain market share from unorganised players on the back of positive sector trends, innovative products, focus on non-auto segments, increase distribution network and expand in newer geographies and in semi-urban and rural areas. Moreover its recent foray into adhesives and construction chemicals segment would aid benefits in the coming quarters. We have a positive view on KNPL hence we are initiating with a Buy rating on the stock with a target price of Rs. 705.

Buy Kansai Nerolac Paints Ltd @ 9-12 Months CMP 577.35  TGT 705

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