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Nifty Outlook

Markets started the week on a robust note and gained nearly two and a half percent. The benchmark opened gap-up led by supportive global cues and continue to inch higher as the day progressed, thanks to healthy buying in sectors such as IT, FMCG, metals and healthcare. Consequently, the Nifty ended near day’s high at 14,845 levels, up by 2.3%. The broader markets too ended in positive with gains in the range of 1-1.3%.

It’s surprising the way the benchmark is showing resilience amid mixed cues. Going ahead, upcoming data viz. Core Sector and auto sales along with global cues will remain on the participants’ radar. Needless to say, the recent deterioration of the COVID situation in India has dented sentiment and will be closely watched by the participants in the coming sessions too. We thus reiterate our cautious stance until we see some decisiveness in the trend.

News

BHEL has bagged a major order for a Sulphur Recovery Unit from IOCL. With this order, BHEL has made an entry into the downstream oil & gas process package business.

Tata Power announced that the company has received a Letter of Award from Gujarat Urja Vikas Nigam Ltd to develop a 60 MW solar project in the state of Gujarat.

Alkem Laboratories has agreed in principle to subscribe to a partnership interest in ABCD Technologies LLP which is to be renam

Derivative Ideas

VOLTAS FUTS added around 14% in open interest addition as long buildup was seen in it till closing time. Current chart pattern also indicates further up move in its price. We suggest buying VOLTAS as per below levels.

Strategy:- BUY VOLTAS BETWEEN 980-985 STOP LOSS 965 TARGET 1035.

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 385.85 TGT 479

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