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Nifty Outlook

Markets took a breather after the recent rebound and lost nearly a percent on the last trading day of the financial year. The benchmark opened gap down and traded with negative bias throughout the session citing mixed cues. Finally, the Nifty ended near day’s low to close at 14,690 levels. A mixed trend was witnessed on the sector front wherein banks, IT and energy were the top losers while realty, FMCG and consumer durables were the gainers.

On the flip side, the broader markets outperformed wherein midcap and smallcap closed with gains of 0.3% and 0.4%. We’re seeing erratic swings during this consolidation phase and the divergence between Nifty and the banking index is further adding to the participants' worries. Traders should limit leveraged positions and focus more on the selection of stocks. In absence of any major event, global cues and COVID-related updates will remain in focus

News

* Sterling and Wilson Solar announced that its US subsidiary, Sterling and Wilson Solar Solutions, Inc, has signed an order worth USD 121.7mn (~ INR 890cr) in the Pacific Northwest region of the United States of America. It is scheduled to be commissioned by Q4FY22.

* SpiceJet announced that it has signed a MoU with Avenue Capital Group for financing, acquisition, sale and lease-back of 50 new planes to be ordered by the airline.

* Kalpataru Power Transmission announced that it has secured new orders of Rs. 625cr in power transmission and railways business in domestic and overseas markets.

Derivative Ideas

CUMMINSIND 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 CUMMINSIND as per below levels.

Strategy:- BUY CUMMINSIND BETWEEN 910-912 STOP LOSS 890 TARGET 955.

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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