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Nifty Outlook

Markets traded under pressure for the fifth consecutive session and lost nearly a percent. It opened weak following feeble global cues and further drifted lower as the session progressed. Though it tried to recoup some of its losses in the second half but failed to make any decisive move. Consequently, the Nifty index ended lower by 1.1% at 13,818 levels.

On the sector front, a mixed trend was witnessed as IT, Auto and Realty were the top losers whereas Consumer Durables, Oil & Gas and Banks ended in the green. Amid all, the broader indices outperformed the benchmark as both Midcap and Smallcap restricted the losses to 0.5% each. Markets may see a breather on Friday after the recent slide but volatility would remain high.

Nifty respected the support zone at 13,700 but sustainability above the same is critical for a decisive rebound. Considering the prevailing scenario and upcoming event i.e. Union Budget, we suggest continuing with hedged positions and preferring index majors over others.

News

* Tata Power Solar has received a Letter of Award to build 95 MW of ground mounted Solar PV project for GSECL. The order value of the project is approximately Rs. 460 cr. The Commercial operation date for this project is set for April 2022.

* DB Corp announced its numbers wherein revenue was down 17.4% YoY to Rs. 494 cr. Its net profit rose by 21.3% YoY to Rs. 99 cr as against Rs. 81.6 cr.

* Colgate Palmolive announced its Q3FY21 numbers wherein consolidated revenue was up 7.4% YoY to Rs. 1,232 cr Its EBITDA grew by 17.3% YoY to Rs. 371 cr. Its consolidated net profit was up 24.7% to Rs. 248 cr.

Derivative Ideas

HAVELLS FEB FUT added around 23% in open interest addition as LONG buildup was seen in it in till closing time. Current chart pattern also indicates further up move in its price. We suggest buying HAVELLS as per below levels.

Strategy:- BUY HAVELLS BETWEEN 1150-1160 SL 1120 TARGET 1230.

Investment Pick - SBI Life Insurance Company Ltd.

* SBI Life Insurance Company Ltd. is a joint venture between State Bank of India and BNP Paribas Cardiff S.A. It is one of the leading life insurers in India with a healthy market share of 13.3% in terms of Individual rated premium. SBI Life offers a comprehensive range of life insurance and pension products at competitive prices, ensuring high standards of customer service and world-class operating efficiency.

* Within the industry, SBI Life is one of our preferred picks given its huge untapped client base, wide distribution reach and industry-leading cost ratios. Further, increased focus on business through digital channels and a strong distribution platform should lead to consistent market share gains for the company. We initiate with a Buy rating on the stock with a target price of Rs. 1069.

Buy SBI Life Insurance Company Ltd @ 9-12 Months CMP 935.5 TGT 1,069

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