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Nifty Outlook

Markets traded volatile in a range and lost over half a percent, in continuation to a prevailing consolidation phase. The first half was dull as the benchmark hovered in a narrow range however profit taking in the final hours pushed the index in red. Consequently, Nifty closed around the day’s low to close at 17,898 levels. Amongst the sectors, oil & gas, banking and realty were the top losers wherein auto continued to rally for the second straight day. A mixed trend was witnessed on the broader front wherein midcap ended lower and smallcap closed almost on a flat note.

Feeble global cues are weighing on sentiment and there’s nothing much to cheer on the domestic front as well. Indications are in the favour of further slide but the pace would be gradual. Nifty has next support around 17,800-17,700 zone. In case of a rebound, 18,000 would act as a hurdle. Participants should align their positions accordingly.

News

* Amber Enterprises India has invested Rs 60,64,680 in Sricity Electronics Manufacturing Cluster Private and has been allotted 6,06,468 equity shares at a face value of Rs 10 per share comprising 10.9% share capital of Sricity.

* Alembic Pharmaceuticals announced that its joint venture Aleor Dermaceuticals Limited (Aleor) has received final approval from the USFDA for its Abbreviated New Drug Application for Mupirocin Cream USP, 2%.

* L&T Technology Services has been chosen by NVIDIA and Mavenir as engineering partner. The company has been selected as an engineering partner by Mavenir and NVIDIA, to accelerate adoption of the industry’s first converged AI-on-5G.

Derivative Ideas

TECHM FUT gained around 1.2% on 17th Nov. The Scrip is looking most comfortable for upside within its peers.

Strategy:- BUY TECHM NOV FUT@1607-1611, SLOSS AT 1595, TRGT 1640.

Investment Pick - The Ramco Cements Ltd.

Ramco Cements Ltd (TRCL) is the fifth-largest cement producer in India and the most popular cement brand in South India. The company is six decades old and manufactures ready mix concrete, dry mortar products and various grades of cement. It has a presence across ten states of India with four integrated plants and six grinding units. Apart from South India, it is growing its presence in East India, Sri Lanka and the Maldives.

We have a positive outlook given its strong brand name, leadership position in South India and product portfolio. In addition, its focus on expanding capacity increasing utilization levels and cost-saving initiatives would further help in improving profitability. We estimate its Revenue/EBITDA/PAT to grow at a CAGR of 12%/13.5%/15.5% respectively over FY21-24E and have initiated a Buy on the stock with a target price of Rs 1,237.

Buy - The Ramco Cements Ltd @ 9-12 Months CMP 1,021.9 TGT 1,237

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