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Nifty Outlook

Nifty has finally regained momentum after spending nearly two months in a consolidation range and reclaimed the 15,000 mark. The rise can be attributed to a decline in India's COVID cases and stability in the global markets. Among the sectoral indices, banking and auto have witnessed decent traction in the last two sessions after underperforming for nearly a month or two.

Sectors, which were struggling for the last couple of months, have started seeing a rebound in response to the recent dip in the COVID cases in India. Needless to say, the IMD has recently shared their expectation of a normal monsoon which is now fueling the rebound in the auto pack. Put together, indications are in the favor of prevailing up move to continue thus we suggest continuing with the “buy on dips” approach. On the benchmark front, Nifty has the potential to retest the 15,300 levels

News

* Tatamotors reported its Q4FY21 numbers wherein consolidated revenue was up 41.8% YoY to Rs. 88,627.9 cr. Its net profit declined to Rs 7,605.4 cr.

* Jyothy Labs posted revenue growth of 26% YoY to Rs. 495.1 cr in Q4FY21. Its net profit grew by 2.7% YoY to Rs. 27.3 cr against Rs 26.6 in the same quarter last year.

* Abbott India posted revenue growth of 14% YoY to Rs 1,095.5 in Q4FY21. Its net profit grew by 37.4 % to Rs 152.5 cr against Rs 111 cr in the same quarter of last year.

Derivative Ideas

BHARATFORG FUTS added around 9% 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 672-675 STOPLOSS 660 TARGET 698.

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 376.4 TGT 479

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