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Nifty Outlook

Markets extended rebound for the third successive session and settled with decent gains. After the initial uptick, the benchmark hovered in a range till the end. Among the sectoral indices, metal witnessed noticeable traction while the underperformance of the banking capped upside. Finally, the Nifty index settled above 14,800; up by 0.7%.

We feel improvement in the domestic COVID situation is critical for any sustainable up move else the rebound may again fizzle out in the following sessions. At present, rotational buying in the select index majors across sectors is helping the benchmark to inch higher however the underperformance of the banking index is still hurting the sentiment. Traders shouldn’t go overboard in the current scenario and prefer sectors like metal, pharma and agri-related which are consistently doing well.

News

* Dabur reported consolidated revenue growth of 25.3% to Rs 2,337cr in Q4 FY 21. Its consolidated profit grew by 34% at Rs 377.3 cr compared to Rs 281.6 cr in the corresponding quarter of last fiscal year.

* Steel Strips Wheels reported its earnings wherein revenue growth was up by 80.8% at Rs 699.9 cr. It's posted a net profit at Rs 44.6 cr against a loss of Rs 5.2 cr on YoY basis.

Derivative Ideas

M&M FUTS added around 4% 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 M&M as per below levels.

Strategy:- BUY M&M BETWEEN 759-762 STOP LOSS 745 TARGET 790.

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 380.05 TGT 479

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