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Nifty Outlook

Markets ended almost unchanged in a lackluster session, in continuation to the prevailing consolidation phase. After the initial uptick, the benchmark hovered in a range till the end and profit-taking in the broader market further dented sentiments. Finally, the Nifty index ended lower by 0.1% at 14,678 levels. On the sector front, except FMCG and capital & consumer goods, all the other indices ended with losses wherein auto, oil & gas and banking were the top losers.

Since we're actively following global indices of late, we feel world markets would remain volatile in the near term and key commodity prices would be actively tracked. On the domestic front, earnings announcements and COVID-19 cases would be on participants' radar. We suggest continuing with a selective trading approach and wait for further clarity.

News

* Escorts reported its Q4FY21 numbers wherein revenue was up 60.8% YoY to Rs. 2,229 cr. Its net profit came in at Rs. 285 cr as against Rs. 128 cr in the same quarter last year.

* Dr Reddy’s posted revenue growth of 6.7% YoY to Rs. 4,728 cr in Q4FY21. Its net profit declined by 27.5% YoY to Rs. 554 cr.

* Alembic Pharmaceuticals announced that it has received final approval from the USFDA for its Abbreviated New Drug Application for Lurasidone Hydrochloride Tablets, 20 mg, 40 mg, 60 mg, 80 mg, and 120 mg.

Derivative Ideas

ICICIPRULI FUTS added around 8% 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 ICICIPRULI as per below levels.

Strategy:- BUY ICICIPRULI BETWEEN 550-555, STOPLOSS 542, TARGET 580.

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 TGT 479

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