IGI Logo

Nifty Outlook

Markets traded volatile and lost over half a percent, taking a pause after the recent rebound. The benchmark opened gap down following weak global cues on the back of rising concerns over inflation due to sharp rise in commodity prices. It made an attempt to recover losses as the session progressed but selling pressure in the latter half again pushed the index in the red. Consequently, the Nifty ended lower by 0.6% at 14,851 levels. The broader markets buck the trend as both Midcap and Smallcap ended higher by 0.5% and 0.8% respectively. Amongst the sectors, a mixed trend was witnessed wherein Banking, Metal and IT were the top losers while Oil & Gas, Capital Goods, and Realty ended with gains.

Markets reacted to the global fear of rise in inflation which might trigger the rate hike earlier than anticipated. On the benchmark front, Nifty has been struggling to cross 15,000 mark for the last two months and witnessing the slide again after reaching almost to that zone. However, we feel the downside could be capped this time due to existence of support around 14,600 zone. Having said that, participants should limit leveraged positions and maintain their focus on stocks selection and risk management.

News

* Neuland Laboratories reported revenue of Rs 245 cr in Q4FY21 from Rs 191.6 cr in the same period last year. It reported consolidated profit at Rs 17.2 cr in Q4FY21 as against loss of Rs 9.3 cr in Q4FY20.

* Granules India reported its numbers wherein revenue was up 33% YoY. Its net profit was up 38.2% YoY to Rs 128 cr.

* Firstsource Solutions reported its numbers wherein revenue was up 7.1% QoQ. Net profit was down 61.5% QoQ to Rs 47 cr.

Derivative Ideas

L&TFH FUTS added around 8% 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 L&TFH as per below levels.

Strategy:- BUY L&TFH BETWEEN 87-88 STOP LOSS 84 TARGET 96.

Investment Pick - Crompton Greaves Consumer Electricals Ltd.

Crompton Greaves Consumer Electricals (CGCE) is engaged in manufacturing and marketing of a wide range of consumer products ranging from fans, light sources and luminaires, pumps and household appliances such as geysers, mixer grinders, toasters and irons

We like CGCE for its strong growth potential, consistent rise in market share in its key segment coupled with healthy dividend pay-out ratio, strong cash flow generation, lean working capital cycle and robust return ratios. We recommend a Buy on the stock with a target price of Rs. 479.

Buy Crompton Greaves Consumer Electricals Ltd @ 9-12 Months CMP 371.15 TGT 479

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer http://ex.religareonline.com/disclaimer

SEBI Registration number is INZ000174330

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaime