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Nifty Outlook

Markets ended almost unchanged in a highly volatile trading session following mixed cues. The benchmark opened lower, in response to rising COVID cases, state elections outcome and profit taking in the global indices. It continued to hover in a narrow range as the session progressed however recovery in the last hour aided the index to close on a flat note. Amid all, the buoyancy on the broader front kept the traders busy. Amongst the sectors, a mixed trend was witnessed wherein telecom, metal and healthcare ended with gains whereas consumer durables, oil & gas and banking traded under pressure.

We maintain our cautious stance on the markets given the uncertainty surrounding the rising COVID-19 cases. However, supportive global cues, strong earnings expectation and ramp up in vaccination drive could keep the downside limited. We suggest focusing on themes which are attracting noticeable buying interest amid uncertainty.

News

* Mahindra & Mahindra announced that due to the evolving COVID situation in the country, the company has scaled up its efforts to ensure health and safety of its employees, associates and supporting ecosystem.

* Kotak Mahindra Bank's consolidated profit at Rs 2,589 cr in Q4FY21 increased by 35.9% YoY. Its NII grew by 8% YoY to Rs. 3,843 cr.

* Supreme Industries posted consolidated net profit at Rs 450.4 cr against Rs 117.3 cr and revenue was up 45.7% at Rs 2,084.6 cr versus Rs 1,430.5 cr, YoY.

Derivative Ideas

COFORGE FUTS added around 14% 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 COFORGE as per below levels.

Strategy:- BUY COFORGE BETWEEN 2870-2880 STOP LOSS 2840 TARGET 2960.

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 375.95 TGT 479

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