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Nifty Outlook

Markets rebound sharply on Friday and gained nearly 2%, tracking firm global markets and supportive local cues. The benchmark opened gap up and gradually inched higher as the session progressed and settled around the day's high. Among the key indices, Nifty ended higher by 1.8% at 15,175 levels. Amongst the sectors, all the indices ended with gains wherein Banking & Finance was the top outperformer followed by Realty and Auto. The broader markets underperformed but ended with decent gains of 0.8% and 0.6%.

We feel global cues will continue to dictate the trend in the near future. The recent buoyancy in the banking and financial is certainly encouraging and participation of other sectors on rotational basis would further fuel the recovery. We suggest continuing with a positive yet cautious approach and reiterate our immediate target of 15,300 for Nifty.

News

* Wheels India reported revenue growth of 57.6% YoY to Rs. 927 cr. Its net profit came in at Rs. 26.6 cr as against Rs. 2.8 cr in the same quarter last year.

* Hindalco reported its Q4FY21 numbers wherein revenue was up 44.2% YoY to Rs. 14,412 cr. Its net profit grew by 51.8% YoY to Rs. 495 cr.

* SBI NII grew by 18.9% YoY to Rs. 27,067 cr. Its net profit jumped 80.1% YoY to Rs. 6451 cr.

Derivative Ideas

UPL 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 UPL as per below levels.

Strategy:- BUY UPL BETWEEN 772-775 STOPLOSS 758 TARGET 800.

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 388.45 TGT 479

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