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Nifty Outlook

Markets extended yesterday’s gain and ended higher over a percent. The benchmark opened flat amid mixed global cues however it gradually inched higher as the day progressed citing investors’ expectations from earnings outcome by heavyweights. Sectors such as banking, metals, consumer durable witnessed healthy buying interest from participants. In addition, the progress of the vaccination drive and a dip in the COVID cases further boosted sentiments. Consequently, the Nifty ended with gains of 1.2% to close at 14,653 levels. The broader markets too ended in positive in the range of 1-1.4%. All the sectoral indices ended in green.

We’re currently dancing to the global tunes and prospects of upbeat earnings have further strengthened the recovery. We feel Nifty can test 14,800 next if it manages to hold above the 14,600 zone. Participants should align their positions accordingly and prefer sectors that are showing consistent buying interest.

News

* Maruti Suzuki reported Q4FY21 numbers, revenue stood at Rs 24,024cr, up 32% YoY. Its net profit fell by 9.7% YoY to Rs 1,166cr YoY impacted by lower than expected operating performance.

* Hindustan Zinc’s Q4FY21 revenue was up 58.2% YoY at Rs 6,947cr. The company has posted 85.3% jump in its net profit at Rs 2,481cr versus Rs 1,339cr YoY.

* Sanofi India's profit in Q4FY21 jumped 70.8% YoY to Rs 145.9cr but revenue fell by 7.6% YoY to Rs 725.1cr

Derivative Ideas

TATACHEM FUTS added around 4% 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 TATACHEM in cash as per below levels.

Strategy:- BUY TATACHEM BETWEEN 755-758 STOP LOSS 740 TARGET 795.

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 383.40 TGT 479

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