Semiconductor stocks: Centrum's Nilesh Jain prefers CG Power, Syrma SGS; cautious on Kaynes, Dixon

India's semiconductor investing theme may still be drawing strong retail interest, but market experts are urging investors to be selective rather than chase every stock linked to the narrative. In a market conversation around semiconductor opportunities, Nilesh Jain, VP and Head of Technical and Derivative research at Centrum Finverse identified CG Power and Syrma SGS as the two names standing out on charts, even as he warned that some widely tracked peers are currently underperforming.

Selective bets in a crowded narrative
The semiconductor story has gained momentum amid the government's continued push for domestic electronics manufacturing and the broader "Made in India" chip ecosystem. That backdrop has kept investor attention firmly on companies seen as proxies for the theme, even though the listed universe remains relatively limited.

Jain said the space has seen "some bit of a consolidation" lately, suggesting that the easy momentum trade may have cooled. In that setting, he singled out CG Power as the preferred pick, saying the stock is "looking better placed" for a near-term uptick, with upside potential toward the Rs 980 zone while advising a stop loss at Rs 850.

Why CG Power is standing out
The call is significant because semiconductor enthusiasm in India often spills over into a broad basket of electronics, manufacturing and engineering names. Jain's preference for CG Power indicates a tilt toward stocks where technical structure is still supportive, rather than those merely benefiting from thematic buzz.

That distinction matters in the current market. The broader backdrop on the show was constructive, with the Nifty recovering and risk appetite improving, but stock-specific action remained the dominant strategy. In such an environment, thematic sectors can continue to attract flows, though leadership within the pack can narrow sharply.

Syrma SGS also on the radar
Alongside CG Power, Jain pointed to Syrma SGS as another stock worth watching. He said the counter is "playing out very well" and is 'forming a higher bottom formation,' a pattern typically read as a sign of strengthening price structure.

According to Jain, the broader setup in Syrma SGS remains strong enough for a possible move toward the Rs 1,800-2,000 band in the near term, with a stop loss below Rs 1,560. He described the stock as a "buy on dips" candidate, reinforcing the view that investors should use corrections strategically rather than chase spikes.

Caution on other semiconductor-linked names
Just as notable was his caution on other market favourites. Jain said stocks such as Kaynes and Dixon Technology are "not looking that promising" at this stage and are witnessing underperformance. For investors trying to ride India's semiconductor manufacturing push, that is a reminder that policy excitement alone may not translate into uniform stock returns.

The takeaway is clear: the semiconductor theme remains alive, but leadership is becoming more selective. For now, chart strength appears to be tilting the balance in favour of CG Power & Industrial Solutions Ltd and Syrma SGS Technology Ltd.