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Nifty Outlook

Markets traded lackluster and lost nearly half a percent amid mixed global cues. After the initial uptick, the benchmark gradually inched lower as the day progressed and settled closer to the day’s low. The hawkish statement from the US Fed on the possibility of aggressive rate hikes spooked investors. Besides, mixed updates on the lingering geopolitical tension also dented sentiment. Consequently, The Nifty index ended lower by 0.4% to close at 17,245 levels. Meanwhile, sectoral indices traded mixed wherein Auto, Banking and

The move in the index so far shows consolidation after two weeks of rebound and it’s healthy. However, the prevailing uncertainty on the global front combined with the lack of any domestic trigger is keeping the participants on their toes. In such a scenario, we feel it’s prudent to stick with the sectors or themes which are doing well but avoid going overboard.

News

* Som Distilleries and Breweries shall start production of Indian Made Foreign Liquor (IMFL) from our Odisha plant from Q1FY23. The initial installed capacity will be 50,000 cases per month. This will bring additional profitability for the company.

* CAMS Insurance Repository Services Ltd (CAMSRep), has announced the launch of Deep Contact Tracing. This new offering assists Insurance companies in addressing their Unclaimed amounts, a long-standing problem of the Insurance industry. Using the proprietary contact engine, PolicyGenie Deep Contact Tracing tracks the untraceable policyholders and updates their contact information..

* The Board of Directors of the GVK Power & Infrastructure approved the draft Scheme of Amalgamation of GVK Airport Services Private Limited GVK Power (Khadur Saib) Private Limited, GVK Shipun Dewas Expressway Private Limited, Suta Roads & Infra with the Company i.e. GVK Power & Infrastructure and their respective shareholders and creditors.

Derivative Ideas

HINDALCO gained 2.53% and closed at 608.45 on 23rd Mar. The Metal Sector has been showing traction amid rising commodity prices and HINDALCO is trading with its pack. We expect the same to continue till global tailwinds persist. Holding 585, the counter is poised to test higher levels. We recommend to go Long in HINDALCO.

Strategy:- BUY HINDALCO @ 598-602, SLOSS AT 585, TRGT 630.

Religare New Year Pick - INOX Leisure Ltd.

Incorporated in 1999 and part of the INOX Group, INOX Leisure Ltd. (INOX) is the second-largest multiplex chain operator in India. The company’s screen additions have grown multi-fold over the past 10 years, from 91 screens in FY09 to 667 screens currently (Q3FY22 end) having a wide presence in ~70 cities with a seating capacity of 1,50,000+.

We like INOX in this space given its focus on enhancing the consumer experience, continued emphasis on expansion, effort on increasing spending per head, and increasing footfalls. We recommend a Buy on the stock and arrive at a target price of Rs. 495 (target EV/EBITDA multiple of 13x). Some of the key risks to our estimates include a) resurgence in COVID cases and b) slower than expected revival in footfalls.0

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