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Nifty Outlook

In a highly volatile trading session, the Indian markets opened on a firm note as government expanded vaccine reach to people above 18 years. However, more restrictions announced by state governments dented sentiments as the indices pared all its morning gains and ended lower by 0.4% at 14,296 levels. The broader markets witnessed healthy buying interest as both BSE Midcap and Smallcap ended higher by 0.5% and 0.6% each. On the sector front, mixed trend was witnessed as IT, FMCG and Finance ended with losses whereas Auto, Telecom and Metals ended with gains.

The announcement from state governments and rising COVID-19 cases would continue to remain number one factor for investors to watch out for in the near term. Further, earnings outcome from Nifty majors would be actively tracked. We maintain our cautious stance for the markets in the near term as increasing restriction would adversely impact economic activity.

News

* Dr Reddy's Laboratories is expecting to roll out the Sputnik V COVID-19 vaccine by May-end or early June.

* Hero MotoCorp signed a MoU with the Municipal Corporation of Gurugram for the ecological restoration and conservation of the Aravali Biodiversity Park, situated in Gurugram, Haryana, for the next 10 years.

* Rating agency CRISIL affirmed Snowman Logistics long term rating at 'A/Stable'.

Derivative Ideas

PFIZER FUTS added around 16% 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 PFIZER 5600 CE as per below levels.

Strategy:- BUY PFIZER 5600 CE BETWEEN 120-125 STOP LOSS 95 TARGET 180.

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 367.3 TGT 479

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