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Nifty Outlook

Markets traded volatile and ended marginally in the green amid mixed global cues. In the first half, the benchmark hovered in a range however healthy buying in banking, FMCG and realty aided markets to inch gradually higher as the session progressed. Eventually, the Nifty closed with gains of 0.2% at 15,856 levels. All the sectoral indices ended in positive, except for auto, energy and media. The broader markets traded mixed wherein midcap ended in-line with benchmark while smallcap ended lower by 0.5%.

Markets will first react to results of two index majors viz. Reliance Industries and ICICI Bank on Monday i.e. 26th July. Besides, participants will be closely eyeing the global markets for cues. As we’re again trading closer to the upper band of the prevailing consolidation range i.e. 15,900 zone, we reiterate our view to limit naked leveraged positions and wait for a decisive signal from the index.

News

* JSW Steel reported its Q1FY22 results, wherein standalone revenue increased by 6% QoQ to Rs 25,959cr. Its net profit stood at Rs 5,258cr, up by 31% QoQ.

* Crompton Greaves Consumer Electricals Q1FY22 revenue stood at Rs. 1,050cr, up by 46% YoY. Its PAT came in at Rs. 95cr which grew 27% YoY.

* NTPC announced that it has completed trial operation of 800 MW capacity unit of Darlipali Super Thermal Power Project and consequently have included it in the installed capacity of the company.

Derivative Ideas

TATACONSUM FUTS added around 9% 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 TATACONSUM in cash as per below levels.

Strategy:- BUY TATACONSUM BETWEEN 770-772 STOPLOSS 755 TARGET 805.

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 351.2 TGT 432.

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