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Nifty Outlook

Markets ended almost unchanged in a volatile trading session, in absence of any major trigger. The benchmark started on a flat note but selling pressure in the banking majors pushed the index lower in the first hour of the trade. As the day progressed, Nifty gradually inched higher, thanks to buying interest in IT, FMCG and healthcare majors and finally settled at 15,740 levels. The broader markets continued their outperformance and ended on a positive note in the range of 0.4-0.9%.

In absence of any trigger, we may see further consolidation in the index thus it’s prudent to continue with a stock-specific trading approach. Needless to say, stability in the banking index is critical for further directional move in Nifty else the lackluster move would continue.

News

* Suven Pharma posted Q4FY21 numbers wherein revenue was up 38.1% YoY to Rs 262.5cr. Its Net profit was up 12.1% at Rs 83.2cr.

* Minda Corporation announced a joint venture in 51:49 ratios with Republic of Korea’s INFAC Elecs Co. Ltd. to bring its range of Automotive Antenna Solution for the Indian automotive market. The partnership aims to capitalize on the opportunities for growth in automotive safety, connected & autonomous technologies.

* Titagarh Wagons Q4FY21 Revenue was up 4.3% at Rs 429.9cr. Its net profit stood at Rs 0.8cr as against loss of Rs 8.9cr YoY.

Derivative Ideas

MFSL FUTS added around 17% 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 MFSL in cash as per below levels.

Strategy:- BUY MFSL BETWEEN 1000-1005 STOPLOSS 970 TARGET 1060.

Investment Pick - Finolex Industries Ltd.

Finolex Industries Limited (FIL) is a leading manufacturer of PVC pipes and fittings and the only backward integrated player in PVC resin. The company offers the latest range of PVC-U pipes and fittings which are used in agriculture, construction and industrial operations. It has strategically located manufacturing plants and a strong distribution network.

FIL is well established in agri pipes and has plans to expand in non-agri segment, its backward integrated manufacturing of PVC resin, strong distribution network and changing product mix would aid in earning better revenues as well as profits. Besides its strong brand recall value, growth plans and expansion in the PVC pipes segment are encouraging which makes it one of our preferred picks in this space. On the financial front, FIL has a healthy balance, decent cash flow and it has lowered its debt to comfortable levels over the years. We have initiated a BUY on the stock with a target price of Rs 222.

Buy Finolex Industries Ltd. @ 9-12 Months CMP 173.35 TGT 222

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