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Nifty Outlook

Markets traded volatile for yet another day but managed to end higher. After the initial uptick, the benchmark hovered in a range for most of the session but sustained recovery in the last one and half hours aided the index to close around the day’s high. Consequently, the Nifty index settled above 14,600; up by 0.8%. The market breadth too was inclined strongly on the advancing side. Mostly sectoral indices traded in the tandem wherein pharma outshined the others.

We feel the timely intervention by the apex bank has relieved the participants to some extent amid the prevailing uncertainty. However, it failed to trigger a decisive move in the benchmark indices and we might see further consolidation. On the flip side, there’s no shortage of trading opportunities on the stock-specific front so participants should align their positions accordingly while keeping a check on leveraged trades.

News

* Ceat reported consolidated revenue growth of 45.5%YoY to Rs 2,290 cr in Q4 FY21.It consolidated profit was up at Rs 152.8 cr compared to Rs. 51.9 cr in the corresponding quarter of last fiscal year.

* Korloskar Ferrous reported a revenue growth of 67.1% YoY to Rs 748.7 cr. Its net profit grew at Rs 135.3 cr.

* SRF reported its earnings wherein revenue growth jumped by 40.4% to Rs 2,607.7 cr. Its net profit grew at Rs 381 cr.

Derivative Ideas

NIFTY FUTS added around 6% in open interest as LONG buildup was seen in it in last 2 days till closing time. Current chart pattern also indicates further up move in its price. We suggest buying 6th May option as per below levels.

Strategy:- BUY NIFTY 14600 CE@28-32, SLOSS AT 1, TRGT 70.

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.

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