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Nifty Outlook

The bulls continued to dominate the benchmark indices following supportive global cues. The Nifty index ended higher by 1.3% to close above the 15,100 levels. The broader markets too participated as both Midcap and Smallcap ended higher by 1.5% each. On the sector front, except FMCG, all the other indices ended in green wherein Auto, Metal and Consumer Durables were the top gainers.

We reiterate our bullish bias on markets and will review our target once Nifty reaches 15,200. In absence of any major event, earnings and global cues will dictate the market trend. Besides, market participants would actively track key macro data like IIP, CPI and WPI data.

News

* BEML announced that it has signed a memorandum of understanding with 11 entities to explore & enhance business in defence & aerosapce.

* Meghmani Organics reported its numbers wherein revenue was up 25.9% YoY to Rs. 658 cr. Its consolidated net profit was up 45.6% YoY to Rs. 69 cr.

* Godrej Consumer announced its Q3FY21 numbers wherein revenue was up 10% YoY to Rs. 3,055 cr. Its net profit was up 12.8% to Rs. 502 cr.

Derivative Ideas

IGL FUT added around 5% in open interest addition as LONG buildup was seen in it in till closing time. Current chart pattern also indicates further up move in its price. We suggest buying IGL as per below levels.

Strategy:- BUY IGL BETWEEN 535-537 SL 527 TARGET 553.

Investment Pick - Dabur India Ltd.

* Dabur India reported healthy set of numbers for Q3FY21 its revenue grew by 16% YoY to Rs 2,729 cr driven by strong volume growth of 18.1% in domestic FMCG business. Its EBITDA grew by 16.5% YoY to Rs 574 cr while margin expansion was flat. PAT grew by 17.8% YoY to Rs 494 cr on the back of lower interest expense.

* Dabur’s portfolio is gaining traction each passing quarter largely driven by its focus on health and hygiene segment, new product launches, heavy investment behind their power brands and expanding in rural area. In addition cost optimisation measures and improving go-to-market approach is well supporting company’s growth. We remain positive on the company’s long term growth plans and have maintained a Buy on the stock with a target price of Rs 616.

Buy Dabur India Ltd @ 9-12 Months  CMP 526.1 TGT 616

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