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Nifty Outlook

Markets witnessed profit taking for the second day in a row and lost nearly a percent. After opening on a flat note, the benchmark traded lackluster however selling pressure in the latter half pushed the index lower. On the sector front, Metal, Banking & Oil & Gas were the top losers wherein Consumer Durables and Capital Goods ended with gains. The broader market indices outperformed the benchmark and ended almost on the flat note.

Weak global cues are weighing on the sentiments for the last couple of sessions and we may see further choppiness in global markets on inflation fear. However, reduction is COVID cases in India is certainly comforting to the participants. We believe the Indian markets could outperform in the near term given it has underperformed when the global markets were rallying. We suggest keeping a check on leveraged positions and focusing more on managing the overnight risk.

News

* Relaxo Footwear announced its numbers wherein revenue was up 38.3% YoY to Rs. 748 cr. Its net profit grew by 7.2% YoY to Rs. 102 cr.

* HPL Electric announced that the company has bagged two orders worth over Rs 372 crore for its switchgear, wires and other related accessories for housing projects in the state of Andhra Pradesh.

* Bosch reported revenue growth of 44% YoY to Rs. 3,216 cr in Q4FY21. Its net profit came in at Rs. 483 cr as against Rs. 81 cr in the same quarter last year.

Derivative Ideas

ASHOKLEY 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 ASHOKLEY as per below levels.

Strategy:- BUY ASHOKLEY BETWEEN 123-124 STOPLOSS 120 TARGET 131.

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 383.65 TGT 479

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