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Nifty Outlook

Markets started the new financial year on a robust note led by optimism in the global markets. Announcement by US President Joe Biden to invest USD 2.3 trillion in infrastructure boosted sentiments. Initially the benchmark opened gap up but gains fizzled out gradually as the day progressed.

However in the second half healthy buying amongst the sectors such as metals, banks, auto supported markets to steadily inch higher. Consequently, the Nifty ended near day’s high at 14,867 levels, with gains of 1.2%. The broader markets outperformed and ended higher in range of 1.6-2%. Barring FMCG, all the sectoral indices closed in positive.

Markets are likely to take cues from global peers as stimulus package announcement in the US last night led to renewed buying interest in the global markets. In the near term, positive bias is expected to continue however, rising COVID cases in India would remain a key concern. As Q4 earning season is approaching, Investors focus will shift to earnings announcements and management commentary

News

* Maruti Suzuki India posted total sales of 1,67,014 units in the month of March out of which domestic sales is 1,55,417 units and exports is 11,597 units. For whole FY21, the company posted a total sales of 14,57,861 units, down by 6.7% YoY.

* Alembic Pharmaceuticals announced that its joint venture Aleor Dermaceuticals has received final approval from the USFDA for its Abbreviated New Drug Application for Nystatin and Triamcinolone Acetonide Cream USP, 100,000 units/gram and 1 mg/gram.

* Indraprastha Gas signed a long term gas supply agreement with Delhi Transport Corporation to supply CNG for a period of ten years till December 2030.

Derivative Ideas

BHEL FUTS added around 7% 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 BHEL as per below levels.

Strategy:- BUY BHEL BETWEEN 50-50.50 STOP LOSS 48.80 TARGET 54.

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 392.5 TGT 479

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