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Nifty Outlook

Markets traded volatile and settled marginally in the green on the day of monthly expiry of May month contracts. The benchmark indices witnessed a firm start but profit taking at higher levels capped the upside as the day progressed. Meanwhile, volatile swings witnessed across the board wherein banking showed tremendous resilience while oil&gas and realty traded subdued and ended lower.

Markets are now eyeing announcements on unlocking by the states which is fueling the recovery. Besides, stability in the global markets after the Fed assurance is also helping the index to sustain at higher levels. We’re currently seeing most sectors, barring metal, participating in the move and expect this trend to continue. Participants should continue with the “buy on dips” with focus on sector and stock selection.

News

* Alkyl Amines Q4FY21 revenue was up 62.7% YoY at Rs 382.1cr. Its net profit jumped 88.2% YoY to Rs 92.6cr.

* Strides Pharma Science reported Q4FY21 revenue at Rs 908.5cr, up by 46.9%. Its net profit stood at Rs 46.1cr as against loss of Rs 203.9cr YoY.

* Page Industries Q4FY21 revenue jumped 62.7% at Rs 880.8cr YoY. Its net profit came in at Rs 115.6cr as against Rs 31cr YoY.

Derivative Ideas

BHARATFORG FUTS added around 18% 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 BHARATFORG as per below levels.

Strategy:- BUY BHARATFORG BETWEEN 677-680 STOPLOSS 665 TARGET 705.

Investment Pick - Crompton Greaves Consumer Electricals Ltd.

Crompton Greaves Consumer Electricals (CGCE) reported strong set of numbers for Q4FY21. Its consolidated revenue grew by 48.3% YoY led by strong growth across geographies and different product categories. The net profit was boosted (+144% YoY) by a one-time tax write back and a sharp rise (+72.2% YoY) in other income. In the near term, demand would be impacted on account of on-going restrictions and expect normalcy by Q2FY22.

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. Factoring the impact of demand uncertainty in the near term, we have lowered our estimates for FY22E. We maintain a Buy on the stock with a target price of Rs. 479.

Buy Crompton Greaves Consumer Electricals Ltd.​​​​​​​ @ 9-12 Months CMP 400.6 TGT 479

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