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Nifty Outlook

Markets extended Monday’s up move and gained nearly a percent, tracking firm global cues. The benchmark opened with an uptick and gradually inched higher as the day progressed. It was buying in the index heavyweights across sectors which kept the tone positive and aided the index to settle around the day’s high. Meanwhile, the market breadth was also inclined strongly on the advancing side.

Markets are taking cues from their global counterparts and seeing a rebound amid the news of rising COVID cases domestically and restrictions announced by a few states. While all the sectors are contributing to the move, the underperformance of the banking pack is still hurting the sentiment. We recommend focusing on the sectors which are trading in sync with the benchmark while keeping a check on leveraged positions. The upcoming monthly expiry of December month derivatives contracts would further add to the volatility.

News

* Torrent Pharma announced that it is introducing MSD (a trade name of Merck & Co., Inc, Kenilworth, NJ, USA) and Ridgeback’s molnupiravir under the brand name Molnutor in India.

* Sun Pharmaceutical Industries announced that one of its wholly owned subsidiaries has received Emergency Use Authorization (EUA) from DCGI to manufacture and market a generic version of MSD and Ridgeback’s molnupiravir under the brand name Molxvir in India.

* A joint venture between TRIL Urban Transport Private Limited (a Tata Group Company) and Siemens Project Ventures GmbH (subsidiary of Siemens Financial Services) under Public Private Partnership Route (PPP) will develop the metro corridor from Hinjewadi to Shivajinagar.

Derivative Ideas

TITAN gained 2.08% and closed at 2379.85 on 28th Dec. TITAN took support from its important support zone of 2230-2260. Now Fresh Longs is being seen in TITAN Fut. The Scrip is poised to test its Resistance at 2430 Levels. We recommend to go Long in TITAN.

Strategy:- BUY TITAN @ 2360-2365, SLOSS AT 2330, TRGT 2425.

Investment Pick - Metropolis HealthcareLtd.

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 :-  3,445.35 Recommendation Price 3,335 Target 3,867 Duration 9-12 Months.

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