IGI Logo

Derivative Outlook

• Nifty February future closed at 23,418.30 with a premium of 168.8 point v/s 14.85 point discount in the last session.

• Nifty Put/Call Ratio (OI) decreased from 1.06 to 0.97 level.

• India VIX decreased by 6.71% to 17.39 level.

• On option front, Maximum Call OI is at 25000 then 24000 strike while Maximum Put OI is at 23000 then 22500 strike. Call writing is seen at 23300 then 23200 strike while Put writing is seen at 23200 then 23000 strike. Option data suggests a broader trading range in between 22900 to 23700 zones while an immediate range between 23000 to 23500 levels.

• Option Buying: Buy Weekly Nifty 23600 Call till it holds above 23200 zones. Buy Bank Nifty 51500 Call till it holds above 49000 zones.

• Option Strategy: Nifty Weekly Bull Call Spread (Buy 23600 CE and Sell 23900 CE) at net premium cost of 80-100 points. Bank Nifty Bull Call Spread (Buy 50000 CE and Sell 50500 CE) at net premium cost of 220-230 points.

• Option Writing: Sell Weekly Nifty 21600 PE and 24800 CE with strict double SL. Sell Bank Nifty 45000 PE and 53500 CE with strict double SL.

Fundamental Outlook

Global Market Summary:

• US markets closed on positive note on Thursday

• While Dow up 0.38%, the S&P 500 was up 0.53% and the NASDAQ up by 0.25%

• Dow Futures is currently trading 114 points (0.25%) higher.

• European indices closed with gains of 0.3-1% higher

• Asian markets are trading mix

• Global Cues: Mixed.

Indian Market Summary:

• Indian equities ended higher, amid a volatile session on account of monthly expiry of January futures and options contracts and the Union Budget 2025 on February 1st.

• Nifty50 gained +0.4% to reach 23,250

• Broader market underperformed with Nifty Midcap100 and Smallcap100 closing flat.

• FIIs: -Rs4,583 crore DIIs: +Rs2,165 crore.

• Currently GIFT Nifty is trading Flat. • Domestic Cues: Marginally Positive

News and Impact :

Waree Energies : Waaree Energies Q3 results: Net profit grows multifold to Rs 506.8 cr. Impact: Positive

Paradeep Phosphates: Company Signs MoU with the Odisha government for Rs 4,000-crore investment to expand phosphatic fertiliser capacity over five years. Impact: Positive

Western Carrier: Wins Rs 170-crore work order from Hindustan Zinc for four years. Impact: Positive

Results Today: Sun Pharma, ONGC, Nestle, Vedanta, IndusInd Bank, PNB, Chola Invest., Marico, UPL, LIC Housing

Fundamental Actionable Idea

Bharti Airtel: CMP Rs1644 , Target Price 1900, Buy

• Airtel Africa post strong set in Q3 results: Airtel Africa's net profit increased more than 10 times on a year-onyear basis to $133mn.

• Also Airtel Africa Confirms IPO Plans For Airtel Money On Track , which will lead to Value unlocking

• Bharti Airtel continues to execute strongly on its premiumization strategy, supported by steady growth in its India wireless, B2B, and Africa businesses

• With a focus on tariff hikes and the ramp-up of fixed wireless access (FWA) services, the company is poised 13% CAGR in consolidated revenue and a 16% CAGR in EBITDA over FY24-FY27.

• Bharti's strong market position and strategic investments position it well for sustainable growth over the coming years.

View: Buy

SRF: CMP Rs 2831 TGT 3540

• SRF posted a decent overall performance in 3QFY25. However, the Chemicals business and the Packaging Films business displayed material improvement during the quarter.

• Margins for the Chemicals business improved 120bp/ 620bp YoY/QoQ, while the same for the Packaging Films business improved 240bp/70bp YoY/QoQ

• Factoring in the improving macro scenario and healthy near-term outlook in the Chemicals business, we raise our FY25/FY26/FY27E EBITDA by 4%/5%/ 10%.

• Considering the healthy business outlook across segments, we upgrade SRF to BUY (from Neutral) valuing the stock on an SoTP basis to arrive at our TP of INR3,540

View: Buy

For More Research Reports : Click Here 

For More Motilal Oswal Securities Ltd Disclaimer http://www.motilaloswal.com/MOSLdisclaimer/disclaimer.html SEBI Registration number is INH0000004