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Nifty Outlook

The week started on a negative note for the Indian markets mainly due to sharp surge in COVID-19 cases across the country. Despite, stable global cues, the Indian indices lost its ground and ended with losses of nearly 1.5% to end at 14,638 levels.

The broader markets too were not spared as both BSE Midcap and Smallcap ended with losses of nearly 1% each. On the sector front, IT, Healthcare and Metals ended with healthy gains whereas Banking, Auto, and Realty were the top losers.

The sharp surge in COVID-19 cases has dented investor sentiments and has increased fear of harsh restrictions which would impact economic activity. Going forward, government actions to curb the surge would be one of the important factors to watch out for investors. Further, the upcoming RBI monetary policy would be actively tracked by investors. We expect the RBI to maintain its dovish stance and leave key rates to be unchanged.

News

* Steel Authority of India clocked its best-ever quarterly sales at 4.27 million tonnes (MT) during the March quarter of FY21, up 14% YoY.

* Coal India announced that normal production at the Company's Bilaspur Unit located at 34-40, Sector B, Sirgitti Industrial Area, Bilaspur (Chhattisgarh) has resumed from April 3, 2021.

* Escorts construction equipment segment sold 680 machines, registering a growth of 252% YoY. The company sold 193 machines in March 2020.

Derivative Ideas

COFORGE FUTS added around 3% 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 COFORGE as per below levels.

Strategy:- BUY COFORGE BETWEEN 3010-3020 STOP LOSS 2980 TARGET 3070

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 392.5 TGT 479

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