IGI Logo

Nifty Outlook

Markets traded volatile and lost nearly half a percent citing mixed global cues. The benchmark opened firm and inched further higher in the first hour but prevailing uncertainty around the new COVID variant trimmed all the gains and pushed the index lower as the day progressed. Eventually, Nifty settled around the day’s low to close at 16,983 levels. Among the sectors, consumer durables, IT and realty were the top gainers whereas metal, telecom and banking ended with losses. Amid all, the broader markets outperformed wherein midcap and smallcap ended higher by 0.4% and 1.4% respectively. 

Markets will first react to the GDP numbers in early trades on Wednesday and the auto sales will also start pouring in from December 1. Needless to say, the excessive news flow around the new COVID variant would keep the volatility high. Keeping in mind the scenario, it’s prudent to continue with hedged positions until the markets stabilise.

News

* Maruti Suzuki has announced a price increase of Rs 8000 for ECCO (Non-cargo variants) due to introduction of passenger air bag.

* Dhruv Consultancy Services has received the Letter of Award (LOA) for Services as the Independent Engineer for Supervision of Development of Six lane access control of Raipur-Visakhapatnam Economic Corridor under Bharatmala Pariyojana.

* Lupin announced today the launch of Scifllx, an educational mobile adaptable website for medical students who are pursuing post-graduation with chest specialization.

Derivative Ideas

NIFTY shed around 0.4% on 30th Nov. NIFTY is negative as long as trading below 17250. Every Rise should be use to buy PE or sell CE till it breaks 17250 and starts trading above it.

Strategy:- BUY NIFTY (2 Dec) 17000 PE@40-45, SLOSS AT 5, TRGT 100.

Investment Pick - Kansai Nerolac Ltd.

Kansai Nerolac Paints Ltd (KNPL) posted mixed numbers for Q2FY22. Its revenue grew by 17.1% YoY to Rs 1,619.6cr, while its EBITDA and PAT witnessed de-growth of 39% YoY and 48% YoY. Demand from decorative was steady while lower demand from the industrial segment impacted the performance.

KNPL is one of the leaders in the industrial paint segment wherein it garners 40-45% revenue from the industrial segment while remaining from decorative. Going ahead, the company’s strategy is to innovate products in both its segments, expand reach, and focus on product mix as well as gain market share from unorganized segments. Besides, focus to remain on managing cost and operating efficiency which will help in margin growth. Over the medium to long term, we have a positive view on the stock and have maintained a buy with a target price of Rs 705.

Buy - Kansai Nerolac Ltd. @ CMP :- 596.25 Recommendation Price 605 Target 705 Duration 9-12 Months.

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.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 Disclaimer