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Nifty Outlook

In a volatile trading session, the Indian markets swung both was before ending the session in the red. The Nifty index ended lower by 0.4% at 14,341 levels. The broader markets outperformed wherein both BSE Midcap and Smallcap ended higher by 0.1% and 0.5% respectively. On the sector front, Telecom, IT and FMCG were the top losers.

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 induce stock specific volatility. We maintain our cautious stance for the markets in the near term as increasing restriction would adversely impact economic activity and earnings.

News

* Cadila Healthcare announced that Zydus Cadila had received emergency use approval from DCGI for the use of ‘Virafin’, Pegylated Interferon alpha-2b (PegIFN) in treating moderate COVID-19 infection in adults

* Caplin Point’s arm Caplin Steriles gets US FDA nod for Prochlorperazine Edisylate injection.

* Alembic Pharmaceuticals received final approval from the US FDA for its ANDA Doxepin Hydrochloride Capsules USP, 10 mg, 25 mg, 50 mg, 75 mg and 100 mg. The approved ANDA is therapeutically equivalent to the reference listed drug product (RLD), Sinequan Capsules 10 mg, 25 mg, 50 mg, 75 mg, and 100 mg, of Pfizer Inc.

Derivative Ideas

HDFCLIFE FUTS added around 5% 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 HDFCLIFE in cash as per below levels.

Strategy:- BUY HDFCLIFE BETWEEN 675-678 STOP LOSS 665 TARGET 700.

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 354.65 TGT 479

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