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Nifty Outlook

Markets declined on Friday and lost nearly two percent, after four days of successive rise. Despite firm global cues, the benchmark opened gap down and gradually drifted lower as the day progressed. Among the sectoral indices, profit taking in banking and financial stocks pushed the bulls on the backfoot. Consequently, the Nifty ended lower by 1.8% at 14,631 levels.

The broader markets too ended in a negative range of 0.1-0.7%. Markets will first react to Reliance Industries earnings and monthly auto sales numbers in early trade on Monday. Besides, participants will be eyeing the election results of 5 states on May 2. Put together, traders should prepare themselves for a volatile start. We suggest limiting naked leveraged positions and preferring defensive on dips.

News

* Atul’s revenue was up 15.6% YoY at Rs 1,115.9cr in Q4FY21. The company's net profit was up 23.9% YoY at Rs 175.1cr.

* Marico announced its Q4FY21 wherein the revenue was up 34.5% YoY at Rs 2,012cr and net profit jumped 14% YoY at Rs 227cr.

* Dr Reddy's Laboratories announced the launch of Albendazole Tablets, USP, a therapeutic equivalent generic version of Albenza Tablets, 200 mg, approved by the USFDA.

Derivative Ideas

LICHSGFIN FUTS added around 12% in open interest as SHORT buildup was seen in it till closing time. Current chart pattern also indicates further up move in its price. We suggest buying LICHSGFIN 400 PE as per below levels.

Strategy:- BUY LICHSGFIN 400 PE BETWEEN 12-13 STOP LOSS 9 TARGET 20.

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 384.9 TGT 479

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