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Nifty Outlook

Markets traded with a positive bias for the third successive day and gained nearly half a percent. The benchmark opened marginally in the green however strong buying in the IT and banking majors pushed the index higher. Consequently, the Nifty index ended at record high levels at 15,924. The broader markets too ended in the green wherein both midcap and smallcap ended higher by 0.5% and 1% respectively.

Favorable global cues combined with supportive domestic factors are helping the index to inch higher. Though Nifty has surpassed the hurdle of 15,900 today, it lacked decisiveness. Nevertheless, we feel the recent resilience in banking would help the index to gradually inch higher from hereon. Participants should continue with bullish bias and focus on identifying the right opportunities on dips.

News

* Jubilant Pharmova said that the US FDA has put its Roorkee facility under import alert. Products to be impacted due to import alert Forms <3% of FY21 revenue.

* Wipro IT services with revenue was up 12.2% QoQ. Its Q1FY22 revenue was up 36% YoY and 9% QoQ to Rs. 3,243 cr.

* Aditya Birla Money reported its numbers wherein revenue came in at Rs. 52.8 cr as against Rs. 43.8 cr in the same quarter last year. Its net profit came in at Rs. 5.6 cr as against Rs. 3.5 cr.

Derivative Ideas

MPHASIS FUTS added around 6% 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 MPHASIS in cash as per below levels.

Strategy:- BUY MPHASIS BETWEEN 2370-2380 STOPLOSS 2340 TARGET 2480.

Investment Pick - CSB Bank Ltd.

Established in 1920, CSB Bank Ltd (known as The Catholic Syrian Bank) is one of the oldest private sector banks in India. It has a significant network in Kerala, Tamilnadu, Karnataka and Maharashtra. At present, 90% of the branches are in these four states and the remaining 10% is spread across other states in India. The bank operates mainly in four business areas namely SME banking, retail banking, wholesale banking and treasury operations.

We believe CSB bank is well placed as it has a strong gold loan book, prudent management team and steady financials with improved asset quality. Further, a well-planned strategy like betting on less risky businesses such as agriculture, food & service, etc. and avoiding risky unsecured loans augurs well for

Buy - CSB Bank Ltd @ 9-12 Months CMP 350.05 TGT 432.

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