IGI Logo

Nifty Outlook

Markets traded under pressure and lost nearly a percent, pressurised by weak global cues. After the flat start, the benchmark gradually drifted lower and settled closer to the day’s low to close at 15,728 levels on the weekly expiry day. Among the sectors, selling pressure across metal, banking and pharma pack widened the losses. The broader markets too ended in the red and lost in the range of 0.1-0.4%.

Markets would first react to TCS numbers in early trade on Friday and that might set the tone for rest of the session as well. Further, demand scenario and management commentary will be crucial factors to watch in Q1FY22 results. We suggest keeping a check on naked leveraged positions and wait for clarity. Investors, on the other hand, should not read much into the intermediate correction and continue with the “buy on dips” approach in fundamentally sound counters with a long term view.

News

* Alembic Pharmaceuticals announced that it has received final approval from the USFDA for its Abbreviated New Drug Application for Desipramine Hydrochloride Tablets USP, 10 mg, 25 mg, 50 mg, 75 mg, 100 mg, and 150 mg.

* L&T Infotech informed that it has completed the acquisition of Cuelogic Technologies (100% shareholding). Consequently, Cuelogic is now a wholly owned subsidiary of the company and Cuelogic Technologies Inc., US is now a wholly owned step-down subsidiary of the company.

* Axis Bank along with NIIT Institute of Finance Banking and Insurance, a subsidiary of NIIT Ltd, has launched a FinTech Professional Programme under the Axis Bank - NIIT Digital Banking Academy. The course is designed to build future ready FinTech Professionals for the Bank.

Derivative Ideas

TRENT 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 TRENT in cash as per below levels.

Strategy:- BUY TRENT BETWEEN 905-910 STOPLOSS 890 TARGET 950.

Investment Pick - Finolex Industries Ltd.

Finolex Industries (FIL) Q4FY21 results were above our estimates. Revenue grew by 62.5% YoY to Rs 1,249cr largely driven by better volumes from resin business and realization from both businesses. Resin segment posted growth of 112% YoY to Rs 920.2cr while the company’s pipes and fitting segment grew by 43% YoY to Rs 901.7cr. EBITDA stood at Rs 410.1cr, up by 296% YoY while its margins witnessed strong improvement of 1936bps to 32.8%. Its net profit grew by 410% YoY to Rs 298.8cr with margin expansion of 1629bps.

FIL is well placed in the plastic pipe segment with a strong presence in agri pipes and manufacturing of resin. Going ahead, it has plans to grow in the non-agri segment, expand its manufacturing of PVC resin, increase distribution network and change product mix which will aid in earning better revenues as well as profits. Besides it has strong brand recall value, healthy balance and decent cash flow which bode well for the future growth of the company. So, we maintain a Buy rating on the stock with a target price of Rs 222.

Buy - Finolex Industries Ltd. @ 9-12 Months CMP 177.9 TGT 222

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer http://ex.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 Disclaime