IGI Logo

Nifty Outlook

Nifty finally ended its 2-month long consolidation phase and tested a new milestone of “16,000” levels. The bias was upbeat from the beginning and buying in select index majors pushed the benchmark higher as the day progressed. Further, short covering in the latter half triggered sharp momentum in the last hour of the trade. As a result, the Nifty closed around the day’s high at 16,131 levels; up by 1.6%. On the sector front, the majority of the indices ended in green except for media and metals. Amid all, the broader indices underperformed the benchmark and ended almost flat.

Markets have resumed trend after two months of the range-bound move so it’s unlikely to fade away anytime soon. However, the participation of the banking index would be the critical factor as that would decide the pace of rising from hereon. Nifty has the potential to test 16,300+ zone now. Traders should align their positions accordingly.

News

* Dabur India’s Q1FY22 revenue rose 31.9% YoY at Rs 2,611.5cr. Its net profit was up 28.4% at Rs 438.3cr as against Rs 341.3cr YoY.

* Godrej Properties Q1FY22 revenue was up 19.2% at Rs 86.2cr. Its net profit stood at Rs 17cr as against loss of Rs 19.4cr YoY.

* Barbeque Nation’s revenue came in at Rs 102cr in Q1FY22 as against Rs 9.8cr YoY. The company reported net loss of Rs 43.9cr as against loss of Rs 60.5cr YoY.

Derivative Ideas

BRITANNIA FUTS added around 12% 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 BRITANNIA 3580 CE as per below levels.

Strategy:- BUY BRITANNIA 3580 CE BETWEEN 55-57 STOPLOSS 35 TARGET 100.

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 future growth. From a long term perspective, we are optimistic on the company’s growth prospects thus initiating a Buy on the stock with a target price of Rs 432.

Buy - CSB Bank Ltd @ 9-12 Months CMP 343.8 TGT 432.

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer http://ex.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 Disclaime