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Nifty Outlook

Markets edged higher and gained nearly a percent, in continuation to the prevailing up move. Upbeat global cues led to a firm start however mixed trends across sectors capped the movement thereafter. Eventually, the Nifty index settled closer to the upper band of the range to close at 18,207 levels. The broader markets too ended higher and gained in the range of 0.7% - 1.2%.

It’s going to be a critical session on Thursday as participants will react to the results of IT majors like Infosys, TCS and Wipro and macroeconomic data (IIP and CPI Inflation) in early trade. Besides, the scheduled weekly expiry would also keep the volatility high. Amid all, sustainability above 18,200 in Nifty would pave the way for 18350 levels. We’re still seeing opportunities across the board so traders should maintain their focus on the selection part and align position accordingly.

News

* Kalpataru Power Transmission Ltd announced that it has raised Rs 200 cr through the issuance of non-convertible debentures (NCDs).

* RITES signed a memorandum of understanding with SMEC Group to cooperate and explore infrastructure projects. 

* RattanIndia Enterprises has operationalized its e-commerce foray by approving an investment of Rs 350 crore in its wholly owned subsidiary Cocoblu Retail Ltd.

Derivative Ideas

NAUKRI shed 0.09% and closed at 5633.05 on 12th Jan. The Scrip has been consolidating in a range for some time now. NAUKRI is expected to test its upside resistance at 5850-5900 levels till 5520 is intact. We recommend to go Long in NAUKRI.

Strategy:- BUY NAUKRI @ 5600-5620, SLOSS AT 5520, TRGT 5800.

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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