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Nifty Outlook

Markets witnessed a rebound and settled with gains of over half a percent on the monthly expiry day. The beginning was subdued amid mixed global cues however strong spurt in the index heavyweight, Reliance, prompted a gradual up move which further strengthened with support from select index majors like Infosys, ITC and Kotak Bank. Finally, Nifty settled around the day’s high to close at 17,536.20 levels.

Markets lack decisiveness at current levels and it may continue with the same bias for time being. In case of any rebound, Nifty would face resistance around 17,600-17,800 levels while the 17,350-17,150 zone would act as a cushion. Meanwhile, participants should continue with a stock-specific approach and maintain positions on both sides.

News

* HCL Technologies announced that it has opened its new facility at the state-of-the-art Cinnamon Life complex, in Sri Lanka. HCL continues to expand and grow and this new facility will be its largest in the country, accommodating 4,000 employees.

* Bharti Airtel announced that it has successfully conducted India’s first 5G trials in the 700 MHz band in partnership with Nokia.

* NIIT Ltd announced that it has won the ASSOCHAM Award for Building Sales and Service Capability Enabling Business at EduMeet 2021, the flagship event which honours excellence in the education and skills industry.

Derivative Ideas

NIFTY gained around 0.7% on 25th Nov. The Trend Remains Sideways to Bullish till it breaks 17650 decisively. However we expect NIFTY to test its Resistance zone which lies around 17800 Levels.

Strategy:- BUY NIFTY (2 Dec) 17700 CE@40-45, SLOSS AT 15, TRGT 90.

Investment Pick - Kansai Nerolac Ltd..

Kansai Nerolac Paints Ltd (KNPL) posted mixed numbers for Q2FY22. Its revenue grew by 17.1% YoY to Rs 1,619.6cr, while its EBITDA and PAT witnessed de-growth of 39% YoY and 48% YoY. Demand from decorative was steady while lower demand from the industrial segment impacted the performance.

KNPL is one of the leaders in the industrial paint segment wherein it garners 40-45% revenue from the industrial segment while remaining from decorative. Going ahead, the company’s strategy is to innovate products in both its segments, expand reach, and focus on product mix as well as gain market share from unorganized segments. Besides, focus to remain on managing cost and operating efficiency which will help in margin growth. Over the medium to long term, we have a positive view on the stock and have maintained a buy with a target price of Rs 705.

Buy - Kansai Nerolac Ltd. @ CMP :- 589.6 Recommendation Price 605 Target 705 Duration 9-12 Months.

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