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Nifty Outlook

Markets ended marginally in the green, taking a breather after the recent rebound. The benchmark opened flat and remained range-bound till the end however movement on the broader front kept the participants busy. Among the sectoral indices, mostly ended higher wherein pharma, IT and auto were the top contributors. Consequently, Nifty closed higher by 0.3% at 14,618 levels

Surprisingly, markets are showing tremendous resilience despite the rising COVID cases but sustainability at higher levels seems difficult if this trend continues. Besides, earnings season also holds equal importance and any negative surprise may again derail the recovery. Over the weekend, the HDFC Bank result will announce its numbers and the focus will be on management commentary and growth outlook. On the benchmark front, Nifty has an immediate hurdle at 14,700 and a decisive break will pave the way for further rebound else profit taking would resume so plan your positions accordingly.

News

*The construction arm of L&T has secured orders from prestigious clients for its various businesses such as power transmission, Building and Factories and transportation Infrastructure.

*Westlife Development which operates a chain of McDonald’s restaurants in West and South India informed that it has roped in the popular film celebrity - Rashmika Mandanna, as its brand ambassador for its key advertising campaigns.

*Quess Corp announced the acquisition of 30% stake in Conneqt Business Solutions Ltd for INR 208cr, pursuant to the Put Option notice by Tata Sons Pvt. ltd. With this transaction, Conneqt will become a wholly owned subsidiary of Quess.

Derivative Ideas

AARTIIND FUTS added around 30% 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 AARTIIND in cash market as per below levels

Strategy:- BUY AARTIIND BETWEEN 1405-1410 STOP LOSS 1375 TARGET 1470.

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 386.55 TGT 479

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