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Nifty Outlook

Markets consolidated in a narrow range and settled marginally higher, taking a breather after the recent surge. Initially, the upbeat start of the IT majors triggered a firm opening however profit taking in the banking space trimmed the gains in no time. The benchmark continued to trade lackluster thereafter however movement in the metal and pharma space kept the traders’ busy. Consequently, the Nifty index ended at 18,257 levels; up by 0.25%. Amid all, the broader indices outperformed wherein both midcap and smallcap gained nearly 0.6% each.

The not so decisive move in the index combined with a dip in the banking space is pointing towards some consolidation. And, we feel it would be healthy, considering the surge from the December lows. However, there’ll be no shortage of trading opportunities, thanks to rotational buying across sectors. Participants should focus on metal and pharma along with select counters from chemical, sugar and power space for long positions.

News

* TVS Motor Company announced a strategic partnership with Swiggy. This partnership highlights TVS Motor Company’s commitment to strengthen electrification across diverse mobility segments and aligns with Swiggy’s many efforts to enable the adoption of EVs in its delivery fleet.

* Ramkrishna Forgings won an export order to supply spindles worth Rs 575 million over a period of 3 years from one of the largest TIER-1 manufacturers in North America in the CV segment.

* CESC consolidated revenue was up 1.5% at Rs 2,826 cr against Rs 2,784 cr YoY. Its consolidated net profit was up 0.3% at Rs 329 cr against Rs 328 cr in Q3FY21.

Derivative Ideas

RELIANCE gained 0.56% and closed at 2535.3 on 13th Jan. The Scrip has been consolidating in a range for some time. Now it has given a range breakout with Fresh Longs added in RELIANCE FUT. The stock is poised to test its resistance at 2600. We recommend to go Long in RELIANCE.

Strategy:- BUY RELIANCE @ 2515-2525, SLOSS AT 2490, TRGT 2600.

Religare New Year Pick - Metropolis Healthcare Ltd.

Incorporated in 1980, Metropolis Healthcare is one of the leading diagnostic players in India. Metropolis has spread its footprint across 19 states & 210 cities. It has a dominant share in the western and southern regions. It offers a comprehensive range of 4,000+ clinical laboratory tests. It also offers analytical and supports services to clinical research organisations for their clinical research projects.

The diagnostic industry is expected to register strong growth driven by multiple growth drivers. Within this space, we like Metropolis given its pan India presence, asset-light business model, strong brand equity, and wide range of tests. Further, a strong focus on increasing its B2C business and specialized testing would aid margin improvement. We thus raise our estimate for Metropolis and expect Revenue/ EBITDA/PAT to grow at 19.0%/18.9%/20.9% over FY21-24E. We recommend a Buy rating on the stock with a target price of Rs. 3,867.

Buy - Metropolis Healthcare Ltd. @ CMP :-  3,114.15 Recommendation Price 3,335 Target 3,867 Duration 9-12 Months.

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