IGI Logo

Nifty Outlook

The bears took charge in today’s session as the Nifty index ended with a sharp cut of nearly 2%. Weak global cues combined with the news of a new mutant of the COVID-19 in India spooked participants. The broader markets too witnessed sell-off as both midcap and smallcap ended with losses of 1.7% and 1.6% respectively. On the sector front, all indices ended in the red wherein metal, auto and banking were the top losers.

Though we have not seen any major correction in the benchmark yet, the uneasiness is certainly increasing with the rapid rise in the COVID cases. Besides, global cues are also mixed. We were hoping for some respite from the banking front but it failed to build on the previous session’s gain. Put together, indications are now pointing towards further slide in the index while volatility is likely to remain high due to the scheduled expiry of March month contracts. We reiterate our bearish yet cautious view and suggest maintaining positions on both sides.

News

Adani Enterprise wholly owned subsidiary Adani Road Transport Ltd announced the award of one more Hybrid Annuity Mode Road Project from National Highways Authority of India. The project includes four laning of NH-365A from Kodad to Khammam in the state of Telangana under Bharatmala Pariyojana on Hybrid Annuity Mode.

Adani Green Energy signed a share purchase agreement for the acquisition of 100% stake in two SPVs holding 74.94 MW operating solar projects of Sterling & Wilson, a Shapoorji Pallonji group company.

Cadilla Healthcare announced that Zydus has made its brand of Remdesivir, Remdac more affordable at Rs 899 for a 100 mg lyophilized injection.

Derivative Ideas

ONGC APRIL added around 6% in open interest addition as long buildup was seen in it till closing time. Current chart pattern also indicates further up move in its price. We suggest buying ONGC in cash as per below levels.

Strategy:- BUY ONGC BETWEEN 103-104, SLOSS AT 100 TARGET 112.

Investment Pick - Kansai Nerolac Paints Ltd.

Established in 1920, Kansai Nerolac Paints Limited (KNPL) is a subsidiary of Kansai Paint Co. Ltd., Japan. It is the second largest coating company in India and a market leader in Industrial Coatings. KNPL has well established products in both the decorative and industrial segments. It has pan-India presence with 6 manufacturing plants, 104 depots and 27,500+ customer network. In international markets it expanded in Nepal, Bangladesh and Sri-lanka.

Going ahead, its strategy is to grow in both segments as well as gain market share from unorganised players on the back of positive sector trends, innovative products, focus on non-auto segments, increase distribution network and expand in newer geographies and in semi-urban and rural areas. Moreover its recent foray into adhesives and construction chemicals segment would aid benefits in the coming quarters. We have a positive view on KNPL hence we are initiating with a Buy rating on the stock with a target price of Rs. 705.

Buy Kansai Nerolac Paints Ltd @ 9-12 Months CMP 555.2 TGT 705

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 Disclaimer