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Nifty Outlook

Markets traded volatile in a range and ended flat as participants preferred to book some profit at higher levels. The MPC’s monetary policy outcome came in line with street expectations thus failed to trigger any major reaction. Amongst the sectoral indices, a mixed trend was witnessed as Banking, Consumer Durables and FMCG ended with losses whereas Oil &Gas, Capital Goods and Auto ended with decent gains. At the same time, the action continued on the broader front and both the indices ended with decent gains. On the benchmark front, Nifty settled marginally lower to close at 15,650 levels.

With no major domestic event, the focus would shift to global indices for cues. Besides, as new COVID cases have seen a considerable decline, all eyes would be on state governments for further easing of the restrictions. We may see some profit-taking or consolidation in the benchmark early next week however the trend would remain positive. Traders should maintain their focus on identifying the right stocks and utilize the dips to accumulate.

News

* Bank of India reported its numbers wherein NII was down 22.6% YoY to Rs. 2,936 cr. Its net profit came in at Rs. 250 cr as against a loss of Rs. 3,571 cr in the same quarter last year.

* Bharat Forge reported its Q4FY21 numbers wherein revenue was up 48.4% YoY. Its net profit came in at Rs. 205 cr as against a loss of Rs. 73 cr in the year ago period.

* NIIT reported its numbers wherein revenue was up 30.5% YoY to Rs. 276 cr. Its consolidated net profit jumped to Rs. 46.5 cr as against Rs. 0.6 cr YoY.

Derivative Ideas

GUJGASLTD FUTS added around 14% 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 GUJGASLTD in cash as per below levels.

Strategy:- BUY GUJGASLTD BETWEEN 584-586 STOPLOSS 578 TARGET 600.

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 400.05 TGT 479

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