IGI Logo

Nifty Outlook

Markets continued to decline for the fourth straight session on account of weak global cues. The Nifty managed to recover some of its losses in the last hour of trade but still ended with a cut of around 0.8% at 17,617 levels. The broader markets underperformed as both Midcap and Smallcap ended lower by 1.9% each. Amongst the sectors, all the other indices, except FMCG, ended in red wherein Consumer Durables, Capital Goods and Realty were the top losers.

Markets will react to the earnings of two heavyweights- Reliance Industries and ICICI Bank in early trade on Monday. Weak global cues are currently weighing on the sentiment and excessive volatility due to earnings is further adding to the participants’ worries. On the index front, Nifty should hold 17,600 levels for any meaningful recovery, else it may see a further slide to 17,350 zone. We suggest preferring hedged positions and suggest keeping a check on position size until the market stabilises.

News

* Hindustan Zinc reported its numbers in Q3FY22 wherein revenue was 32.4% YoY to Rs. 7990 cr. Its net profit jumped 22.8% YoY to Rs. 2,701 cr.

* Heritage Foods reported its Q3FY22 numbers wherein revenue was up 10.3% YoY to Rs. 667 cr. Its net profit declined 21% YoY to Rs. 20.8 cr.

* Laurus Labs signs an agreement with MPP (Medicine Patient Pool) for the manufacturing of the oral COVID-19 antiviral medication Molnupiravir.

Derivative Ideas

AMBUJACEM FUT shed 1.7% and closed at 369.6 on 21st Jan. After finding Resistance at 410 levels, AMBUJACEM gave negative closing for 4 consecutive sessions. Now as the Scrip is trading below its crucial 21 EMA with Fresh Shorts being added in its FUT, we recommend to go Short in AMBUJACEM FUTS.

Strategy:- SELL AMBUJACEM JAN FUTS @ 373-376, SLOSS AT 381, TRGT 364.

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.

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.religareonline.com/disclaimer

SEBI Registration number is INZ000174330

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer