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Nifty Outlook

After a sluggish opening following weak global cues, the Indian markets witnessed a sharp bounce back in today’s trading session. The Nifty index ended with healthy gains of 0.8% at 14,406 levels. The broader markets too witnessed healthy buying interest wherein both BSE Midcap and Smallcap ended higher by 0.3% and 0.6%.

On the sector front, except FMCG & Consumer Durables all the other indices traded in green wherein Banking, Metal and Realty were the top gainers. We reiterate our cautious stance in the near term due to rising COVID-19 cases. The updates from state government’s plans to curb the rising cases would be on investors radar. Further, the earnings announcement from companies is also likely to induce stock specific volatility.

News

* Filatex India reported its numbers wherein revenue was up 31% YoY to Rs. 853 cr. Its net profit came in at Rs. 118 cr as against Rs. 21 cr in the same quarter last year.

* Subex launched HyperSense, an end-to-end Augmented Analytics platform that helps enterprises make faster, better decisions by leveraging Artificial Intelligence (AI) across the data value chain.

* The Buildings and Factories business of Larsen and Toubro Construction has secured a significant contract from Oilfields Supply Company Saudi owned by the Dubai based Oilfields Supply Center to design and build one of the World's largest oil and gas supply bases at King Salman Energy Park, Dammam, Kingdom of Saudi Arabia.

Derivative Ideas

TATASTEEL FUTS added around 6% in open interest as LONG buildup was seen in it till closing time. Current chart pattern also indicates further up move in its price. We suggest buying TATASTEEL in cash as per below levels.

Strategy:- BUY TATASTEEL BETWEEN 905-908 STOP LOSS 885 TARGET 940.

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 357.85 TGT 479

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