IGI Logo

Nifty Outlook

Markets traded volatile for yet another session and ended almost flat, in absence of any major trigger. Initially, the benchmark opened with an uptick tracking firm global cues but it couldn’t hold the gains for long and drifted gradually lower as the session progressed. The situation improved again in the latter half, with recovery in index majors from metal, energy and capital goods space. Consequently, the Nifty index ended almost unchanged at 16,282 levels.

We may see further consolidation in the index on Thursday however volatility will remain high due to the scheduled weekly expiry. The recent correction in the broader indices viz. midcap and smallcap have turned the participants cautious. We reiterate our view to prefer index majors and quality midcap for short-term bets until the broader market stabilises and suggest maintaining few short positions also. Investors, on the other hand, should not worry about the recent correction and use this phase to accumulate quality stocks on dips.

News

* India Cement’s consolidated revenue was up 36.9% at Rs 1,045.3cr versus Rs 763.5cr, YoY and net profit at Rs 43.1cr versus Rs 19.5cr in Q1FY21.

* Cadila Healthcare's consolidated and revenue was up 14.5% at Rs 4,025.4cr versus Rs 3,514.6cr, YoY and net profit rose 29.3% at Rs 587.2cr versus Rs 454cr, YoY.

* Pidilite’s revenue rose at Rs 1,936.8cr against Rs 877.8cr in Q1FY21 and net profit also went up at Rs 217.6cr against Rs 15.8cr, YoY.

Derivative Ideas 

BANKNIFTY shed around 3% in open interest as SHORT covering was seen in it . Current chart pattern also indicates further up move in its price. We suggest buying in BANKNIFTY 26 AUG 37000 CALL OPTION as per below levels.

Strategy:- Buy Banknifty 26 Aug 37000ce@100-130 sloss at 40 trgt 220.

Investment Pick - CSB Bank Ltd.

CSB Bank reported a mixed set of numbers wherein net interest income was down by 2.9% QoQ and total income was down by 11.3% QoQ due to lower other income. However, its pre -provisioning profit was up 39% due to lower employee and depreciation cost. PAT grew by 42.2% QoQ to Rs 61cr. We believe with unlocking and improving economic conditions, the CSB bank business would witness growth for the long term. Maintain Buy.

We believe CSB bank is well placed as it has a strong retail portfolio with a gold loan book and a prudent management team. Going forward, its focus would be on expanding digital presence, betting on less risky businesses and growing gold loan business. We believe with easing restriction, demand for loans in SME, MSME and 2-wheelers segments will get back on track. From a long term perspective, we are optimistic on the bank’s growth prospects and thus maintain a buy on the stock with a target price of Rs 432.

Buy CSB Bank Ltd @9-12 Months CMP 319.15 TGT 432

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