IGI Logo

Nifty Outlook

Markets witnessed a breather after the sharp decline in the previous session and managed to close with gains of nearly one and a half percent. The benchmark indices opened marginally in the green and traded volatile in the first half amid profit-taking in the IT majors post TCS results. However, recovery in the auto, banking and select metal majors in the latter half helped the index to close around the day’s high.

Sentiment boosted on the news of fast-tracked emergency approvals for foreign-produced Covid-19 vaccines. Consequently, Nifty ended with gains of 1.4% at 14,505 levels. The broader markets too ended with gains in the range of 1.2-1.5%. We expect volatility to continue until there is clarity over the lockdown situation and availability of vaccines. The earnings season would further add to the choppiness ahead so we suggest investors maintaining stock-specific trading approach. Meanwhile, global cues, metals and crude oil prices would also be on investors’ radar.

News

* Cipla announced that it has doubled production of COVID-19 medication remdesivir to help meet “unprecedented demand” as the country battles a massive second wave of infections.

* Ashoka Buildcon announced that it has emerged as the Lowest Bidder (L-1) for project viz. ‘Gauge Conversion of Bechraji (63.83 KM) – Ranuj (101.983 KM) Section, Total Length of 38.153 KM metre Gauge to Broad Gauge with 25 KV AC Electrification in Ahmedabad Division of Western Railway. The quoted value of the project is Rs 333.6cr.

* BPCL announced that it has collaborated with Accenture for digitally transforming its sales and distribution network.

Derivative Ideas

TVSMOTOR FUTS added around 4% 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 TVSMOTOR in cash market as per below levels.

Strategy:- Buy TVSMOTOR at 545 sloss at 538, Target 559.

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

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 Disclaimer