Actionable: Buy Infosys, Kotak Mahindra Bank, TCI ( Top pick in logistics space).

From Advisory Desk : Vikash Sahay

20th October 2021

Market Outlook: Global markets were closed in green and futures are trading in flat to positive. SGX Nifty is indicating a flat opening. US Bond yields sharply raised to five month high which is at 1.67% on Tuesday ,following better than expected consumer data in last week. Yesterday, Nifty witnessed a volatile move throughout the day and closed marginally lower majorly dragged by FMCG, Metals and Auto stocks offset the gains in IT stocks. Momentum shares fell sharply on account of profit booking after the recent upsurge. Global rating agency Moody’s upgraded the bank system outlook to stable. We expect the volatility to continue as the india VIX still trading near 18 levels, however stock specific action will be in momentum.

Actionable: Buy Infosys, Kotak Mahindra Bank, TCI ( Top pick in logistics space).

Initiating coverage :  Logistics – Thematic (On the cusp of a transformation; Initiating coverage with a positive outlook). We assign a Buy rating to TCI Express, Transport Corporation of India , VRL Logistics , Container Corporation of India and a Neutral rating to Blue Dart Express and Mahindra Logistics. TCI is our top pick in this space.

Global market:
DOW:  +198
SGX NIFTY:   +30  (prev.close 18426)
NIFTY 50 : 18418
Sensex : 61716

Institution:
FII:                     -506 Cr
DII:                    -2578 Cr

NSE:
Advances: 935 / Declines: 2427

Currency:
Dollar: $ 75.34
Dollar Index: 93.71

Commodity:
Gold: $1772  per ounce
Crude: $84.65  per barrel

Bonds:
10 year US bond rate: 1.66
10 year Indian Bond rate: 6.39

Derivative:
PCR: 0.97
VIX:  17.38

Today’s results announcement: Havells, Jubilant foodworks, L&T finance, Syngene, Shoppers stop, Snowman, Angel broking, Hathway, Just dial, Tata communications, Tata steel long products, Tejas networks.

Results update:
Above estimates: ACC, LTTS
Inline estimates: HUL, ICICIPRU, ICICI securities, Nestle, Navin Flourine
Below estimates: Rallis india

Updates:

QSR and Hotel stocks: Maharashtra government has allowed all restaurants to function till 12 AM and other establishments can stay open till 11 PM with immediate effect.

Securities in BAN: AMARAJABAT, BHEL, ESCORTS, IRCTC, IDEA, NALCO, PNB, SAIL, SUNTV.

Derivative View : VIX closed at 17.38. Max Put OI is at 18300 then 18200. Max Call OI is at 18600 then 18500. Option data suggests a trading range between 18200 to 18600.

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