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Nifty Outlook

Markets ended with gains of nearly half a percent amid volatility. After the positive start, the benchmark hovered in the range till the end and finally settled around the upper band of the same. Meanwhile, movement on the stock-specific kept the traders busy. At one end, the surge in heavyweights such as Reliance Industries aided the market to rally while profit booking in FMCG and financials stocks capped the upside. Finally, the Nifty ended near day’s high at 17,324 levels, up by 0.5%. The broader markets too ended higher in the range of 0.4-0.5%.

We remain cautiously optimistic on the markets and suggest focusing on identifying stocks as we’re seeing selective participation now. Going ahead, along with global markets, participants would keep a close watch on domestic macroeconomic data i.e. CPI, IIP for cues.

News

* Maruti Suzuki India announced to proactively undertake a recall of some petrol variants of Ciaz, Ertiga, Vitara Brezza, S-Cross and XL6. This is to inspect for a possible defect in 181,754 units of these models manufactured between 4th May 2018 to 27th October 2020.

* Steel Strips Wheels board approved a stock split of equity shares of the company from the existing 1 equity share of face value of Rs 10 each into 2 equity shares of face value of Rs 5 each.

* Equitas Small Finance Bank, has announced women hockey player Rani Rampal and cricketer Smriti Mandhana as the company’s brand ambassadors

Derivative Ideas 

HDFCAMC FUTS added around 10% in open interest in as LONG buildup was seen in it. Current chart pattern also indicates further up move in its price. We suggest buying in HDFCAMC as per below levels.

Strategy:- BUY HDFCAMC BETWEEN 3140-3145 SL 3105 TARGET 3220.

Investment Pick - Nippon Life India Asset Management Ltd.

Incorporated in 1995, Nippon Life Asset Management Company (NAM) is one of the leading AMCs in India with a total AUM of ~Rs. 3.79 tn. It is involved in managing the mutual fund (AUM of Rs. 2,442 bn) and managed accounts including Portfolio Management Services (PMS), Alternate Investment Funds (AIF), Pension Funds and Offshore Funds.

We continue to remain constructive on the Indian mutual fund industry given its low penetration level as compared to major economies (11% AUM to GDP ratio v/s world average of 62%). Further, NAM’s consistent increase in equity assets, industry-leading retail assets, focus on growing SIP book and strong presence in B-30 cities augurs well for the growth prospects of the company. We recommend a Buy on the stock with a target price of Rs. 492.

Buy Nippon Life India Asset Management Ltd @ 9-12 Months CMP 419.25 TGT 492

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