IGI Logo

Nifty Outlook

Markets started the week on an optimistic note led by supportive global cues. After a gap-up opening, the benchmark continued its positive momentum led by healthy buying in sectors such as banking(thanks to ICICI results), metals and consumer durables. The broader markets too traded in tandem and ended higher in the range of 0.6-0.9%. Finally, Nifty closed at 14,485 levels, up by 1%.

Upbeat global cues combined with supportive earnings are helping the index to hold at higher levels despite COVID challenges. Also, the recent news of various countries extending help to India in the COVID fight further boosting the sentiment. We remain cautiously optimistic as volatility is likely to remain high on the back of derivatives expiry and upcoming earnings announcements. Banking, metal and pharma are showing tremendous resilience and should be preferred for long trades on dips.

News

* Biocon Biologics, a subsidiary of Biocon has announced that Abevmy® 100 & 400 mg, a biosimilar of Bevacizumab co-developed with Viatris Inc. has received marketing authorization approval from the European Commission following the positive recommendation by the Committee for Medicinal Products for Human Use of the European Medicines Agency.

* Reliance Industries and BP (one of the largest international energy companies in the country) announced the start of production of second new deep water gas field from the Satellite Cluster gas field in block KG D6 off the east coast of India.

* Natco Pharma announced that it has applied to the Central Drugs Standard Control Organization in India for approval of Phase-III clinical trial of Molnupiravir Capsules for the treatment of COVID-19 positive patients

Derivative Ideas

TATASTEEL FUTS added around 5% 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 TATASTEEL in cash as per below levels.

Strategy:- BUY TATASTEEL BETWEEN 930-932 STOP LOSS 910 TARGET 960.

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 372.9 TGT 479

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer http://ex.religareonline.com/disclaimer

SEBI Registration number is INZ000174330

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaime