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Nifty Outlook

Markets registered losses for the second straight session tracking weak global cues. The Nifty index traded with a negative bias throughout the session and ended with losses of 1% at 14,697 levels. The broader markets too witnessed selling pressure as both Midcap and Smallcap ended with losses of 0.8% and 0.4% respectively. Amongst the sectors, except Auto which ended with marginal gains, all the other indices ended with losses wherein metal, banking and oil & gas were the top losers.

Markets would first react to the macroeconomic data viz. IIP data and CPI inflation on Friday. And, since we're closely following global markets of late, participants should keep a close watch on world indices for cues. Considering the scenario, we feel the prudent strategy is to keep a check on naked leveraged positions and wait for further clarity.

News

* Tata Motors JLR January-March retail sales were up 12.4% YoY at 1.23 lakh units. Its China sales were up 127% and US sales were up 10.4%, YoY.

* Asian Paints reported 43.5% YoY growth in revenues to Rs. 6,651 cr. Its net profit grew by 81% YoY to Rs. 870 cr.

* Cadila Healthcare wholly owned material subsidiary Zydus Animal Health and Investments Limited has entered into a Business Transfer Agreement and other Ancillary Agreements to sell and transfer its Animal Healthcare Established Markets Undertaking to Multiples Alternate Asset Management led consortium.

Derivative Ideas

ZEEL FUTS added around 7% 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 ZEEL as per below levels.

Strategy:- BUY ZEEL AT 190 SLOSS AT 185, TARGET AT 200.

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 364.75 TGT 479

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