IGI Logo

Nifty Outlook

Markets ended almost unchanged in a choppy session, taking a breather after the recent surge. After the initial uptick, the benchmark drifted lower and remained in a narrow range till the end. A mixed trend was witnessed on the sectoral front wherein oil & gas, consumer durables and FMCG ended with decent gains while metal, banking and auto closed in the red. Amid all this, the Nifty index managed to settle flat at 15,575 levels.

It’s a healthy pause and we may see further consolidation in the benchmark in the following session. However, there’ll be no shortage of trading opportunities on the stock-specific front so traders should maintain their focus on identifying the sectors/stocks and accumulate them on dips. With the earnings season largely behind us, the markets would focus on global markets and upcoming monetary policy review meet for cues.

News

* TVS Motor Company registers sales of 166,889 units in May 2021 as against sales of 58,906 units in the month of May 2020.

* TTK Prestige has successfully concluded a long-term settlement covering all its workmen at the manufacturing unit at Karjan, Gujarat. This settlement provides for better productivity for the company.

* Balrampur Chini Mills reported a 41.4% decline in its consolidated revenue to Rs. 1,019 cr. Its net profit came in at Rs 235.5 cr as against Rs 241.4 cr.

Derivative Ideas

COFORGE FUTS added around 4% 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 COFORGE 3650 CE as per below levels.

Strategy:- BUY COFORGE 3650 CE BETWEEN 125-130 STOPLOSS 105 TARGET 180.

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 398.3 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 Disclaime