IGI Logo

Nifty Outlook

Markets witnessed a rebound and gained nearly one and a half percent, taking a breather after the recent fall. Upbeat global cues triggered a firm start however profit taking at the higher levels capped the upside. However, the news of GST collection reaching closer to record high fueled fresh momentum in the latter half, which further strengthened with recovery in select index majors. Finally, Nifty closed around the day’s high to settle at 17,929 levels.

Mostly sectoral indices participated in the move wherein metal, realty and IT were among the top gains. In line with the move, the market breadth was also inclined towards the advancing side. We feel it’s a rebound and the bias would change if Nifty manages to cross and hold above 18,100. Meanwhile, participants should continue with the cautious approach and do not jump into a trade. The upcoming US Fed meet and earnings will dictate the trend ahead.

News

* HDFC reported its numbers wherein NII was up 12.7% YoY to Rs. 4,109 cr. Its net profit jumped by 31.7% YoY to Rs. 3,781 cr.

* M&M announced its sales numbers wherein total sales went down 5.5% at 41,908 units against 44,359 units (YoY). Total tractor sales grew 1% at 47,017 units against 46,558 units (YoY). Domestic tractor sales slipped 0.4% at 45,420 units against 45,588 units (YoY). Exports grew 65% at 1,597 units against 670 units.

* Maruti Suzuki announced its numbers wherein Total sales went down 24.2% at 1.38 lakh units against 1.82 lakh units (YoY). Domestic sales fell 32.4% at 1.17 lakh units against 1.73 lakh units (YoY). Exports at 21,322 units against 9,586 units (YoY).

Derivative Ideas

NIFTY FUT has added around 3% in open interest as fresh long positions. Current chart pattern also indicates further upside levels in index at around 18150 levels.

Strategy:- BUY Nifty 11th Nov 18200 CE@75-80, sloss at 50, trgt 130.

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 1,066.5 TGT 1,237

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.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 Disclaimer