IGI Logo

Nifty Outlook

Markets traded volatile in a range and ended marginally in the green amid mixed cues. After the initial uptick, the benchmark hovered in a range till the end while the movement on the broader front kept the participants busy. On the sectoral front, a mixed trend was seen, wherein FMCG, metals and consumer durables were the losers, while banks, capital goods, power and oil & gas were the top gainers. Among the benchmark indices, Nifty ended up by 0.2% at 15,198 levels. The broader markets outperformed and ended in a range of 0.7-9%.

Markets are likely to take cues from the last leg of earnings and scheduled F&O expiry. Besides, global cues and news related to COVID cases and vaccine drive will be closely monitored by the participants. We reiterate our bullish yet cautious stance and advise keeping the focus on selection of sectors and stocks.

News

* India Cements Q4 revenue was up 25.8% YoY at Rs 1,449.6cr. Its standalone net profit stood at Rs 71.6cr as against loss of Rs 111.1cr.

* Ramco Cements standalone revenue was up 19% YoY at Rs 1,630.6cr. Its Q4FY21 net profit jumped 46.6% YoY at Rs 214.4cr as against Rs 146.2cr in Q4FY20.

* Zydus Cadila, launched Trastuzumab Emtansine, the first Antibody Drug Conjugate biosimilar and a highly effective drug for treating both Early and Advanced HER2 positive Breast Cancer, under the brand name ‘Ujvira’.

Derivative Ideas

GAIL FUTS added around 12% 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 GAIL as per below levels.

Strategy:- BUY GAIL BETWEEN 149-150 STOPLOSS 146 TARGET 157.

Investment Pick - Maruti Suzuki India Ltd

Maruti Suzuki India Ltd. (MSIL) is India’s largest passenger vehicles (PV) company with a commanding market share of ~48% in the domestic market with ~1.2 million vehicles sold in FY21. It is a subsidiary of Suzuki Motor Corporation, Japan. MSIL has two manufacturing plants located at Gurugram and Manesar in Haryana with an installed capacity of ~1.58 million vehicles per year. Further, MSIL boasts of its wide distribution network with ~2,765 channels (including NEXA) and has 3,864 service workshops covering 1,914 cities. Further, MSIL is the largest exporter of passenger cars from India.

we expect margins could remain under pressure in the near term due to rising commodity prices and lower volumes. However, price hikes, better product mix and cost rationalization measures would aid margin improvement in FY22 and FY23. We recommend a Buy on the stock with a target price of Rs. 8,289.

Buy Maruti Suzuki India Ltd @ 9-12 Months CMP 6,871.6 TGT 8,289

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