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Nifty Outlook

Markets took a breather after the recent rebound and ended almost flat. After the flat start, the benchmark hovered in a narrow range till the end while movement on the broader front kept the participants busy till the end. Among the sectors, most indices ended in green wherein healthcare, oil & gas and metal were the top gainers.

Markets will first react to the IIP data in early trades on Monday. Besides, development on the Russia-Ukraine crisis and movement of crude will remain in focus. On the index front, a decisive move above 16,800 in Nifty would further fuel the recovery, else sideways to negative move will continue. Participants should stay light and wait for clarity.

News

* G R Infraprojects has emerged as L-1 bidder to establish "Transmission System for Evacuation of Power from RE Projects in Rajgarh (2500 MW) SEZ in Madhya Pradesh" through tariff based competitive bidding (TBCB) process on build own operate and maintain (BOOM) basis.

* Jindal Steel and Power Limited (JSPL) will pay a dividend to investors for FY22 and aims to become net debt-free in the upcoming financial year.

* HP Adhesives has been granted consent to operate by Maharashtra Pollution Control Board for expansion with amalgamation of existing consent.

Derivative Ideas

VOLTAS gained 2.05% and closed at 1202.85 on 11th Mar. The stock after taking the support at 1150-1165 zone has shown good up move quite a few times earlier. Broadly it has been consolidating in a range of 1150-1280. Holding 1150, the counter is likely to test its resistance at around 1250. We recommend to go Long in VOLTAS.

Strategy:- BUY VOLTAS @ 1184-1190, SLOSS AT 1150, TRGT 1240.

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.

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