Jain Flags CG Power, Syrma SGS Strength in Chip Sector

Nilesh Jain, VP and Head of Technical and Derivative Research at Centrum Finverse, has differentiated the current landscape of India’s semiconductor-linked equities. As reported by Business Today, Jain identifies CG Power and Syrma SGS as the primary beneficiaries of recent technical consolidation, distinguishing them from peers that are failing to sustain momentum despite the broader policy tailwind for domestic manufacturing.

The recommendation reflects a shift toward selectivity in a crowded thematic space. While the 'Made in India' chip ecosystem continues to attract retail interest, Jain notes that the easy momentum trade has cooled. He argues that leadership within the sector is narrowing, favoring names with supportive chart structures over those driven solely by narrative hype.

CG Power targets 980 rupee level

Jain singles out CG Power & Industrial Solutions Ltd as the preferred pick for a near-term uptick. He assesses the stock as 'better placed' for a move toward the Rs 980 zone. To manage downside risk, he advises a strict stop loss at Rs 850, indicating that the technical setup remains intact despite recent market volatility.

Syrma SGS shows strong bottom formation

Syrma SGS Technology Ltd is the second name highlighted for its strengthening price structure. Jain describes the counter as 'playing out very well,' noting a higher-bottom formation that signals improving momentum. He projects a potential price range of Rs 1,800 to Rs 2,000 in the near term, with a protective stop loss set below Rs 1,560.

The analyst characterizes Syrma SGS as a 'buy on dips' candidate. This strategy suggests that investors should utilize corrections to enter the position rather than chasing immediate spikes, aligning with the view that the broader setup remains robust enough to support further upside.

Kaynes and Dixon face caution

In contrast to the preferred picks, Jain expresses caution regarding Kaynes Technology and Dixon Technology. He states that these stocks are 'not looking that promising' at the current stage, citing ongoing underperformance. This divergence highlights that policy excitement does not guarantee uniform returns across all semiconductor-linked entities.

The distinction between CG Power, Syrma SGS, and the lagging peers underscores the importance of technical validation in the current market. As the Nifty recovers and risk appetite improves, Jain’s analysis suggests that stock-specific action will dominate, requiring investors to filter for genuine chart strength rather than broad sector exposure.