IGI Logo

Nifty Outlook

Markets traded volatile for yet another session and ended marginally lower. After the initial fall, the benchmark tried to inch higher however profit taking in the final hours pared all the gains and pushed the index closer to the day’s low. Finally, the Nifty index ended the session down by 0.2% to settle at 17,322 levels. Amongst the sectors, most ended in the red with PSU bank, metals and media being the top losers. The broader indices ended mixed wherein midcap traded under pressure while smallcap ended higher by 0.9%.

Markets are currently dancing to the global tunes and we don’t see this changing anytime soon. The US Fed meeting minutes and lingering tension over the Russia-Ukraine crisis will remain on the radar. Besides, the scheduled weekly expiry would further add to the choppiness. We reiterate our cautious stance and suggest waiting for further clarity.

News

* Cyient has announced the launch of its private 5G Networks Center of Excellence (CoE) and has signed a MoU with the Indian Institute of Technology, Hyderabad, as a research partner for the CoE.

* TCS and Nettur Technical Training Foundation, a premier technical and vocational education and training institute, have come together to launch high-demand skill development programs across sectors, in the areas of robotics, automation, manufacturing and electronics.

* Parsvnath Developers has entered into a memorandum of business understanding with SJP Hotels & Resorts Pvt. Ltd, Migsun Group, for undertaking and completing the construction, development, marketing and sale of its residential Project viz. “Parsvnath Palacia’, located at Greater Noida.

Derivative Ideas

BPCL gained 1.41% and closed at 374.1 on 16th Feb. The stock after taking the support at 356-360 zone has seen some traction along with its pack. Holding 360, BPCL is poised to test its resistance at 385 levels. We recommend to go Long in BPCL.

Strategy:- BUY BPCL @ 368-371, SLOSS AT 361, TRGT 385.

Religare New Year Pick - INOX Leisure Ltd.

Incorporated in 1999 and part of the INOX Group, INOX Leisure Ltd. (INOX) is the second-largest multiplex chain operator in India. The company’s screen additions have grown multi-fold over the past 10 years, from 91 screens in FY09 to 667 screens currently (Q3FY22 end) having a wide presence in ~70 cities with a seating capacity of 1,50,000+.

We like INOX in this space given its focus on enhancing the consumer experience, continued emphasis on expansion, effort on increasing spending per head, and increasing footfalls. We recommend a Buy on the stock and arrive at a target price of Rs. 495 (target EV/EBITDA multiple of 13x). Some of the key risks to our estimates include a) resurgence in COVID cases and b) slower than expected revival in footfalls.

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