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Nifty Outlook

Markets extended rebound and gained over half a percent amid mixed cues. Initially, the benchmark opened lower tracking weak global cues however healthy buying in select energy majors and rebound in IT and banking names not only trimmed losses but also helped the index to close in green. Consequently, Nifty settled at 17,822 levels; up by 0.74%. The broader markets too ended positive as both Midcap and Smallcap gained nearly half a percent each.

Markets are taking comfort from upbeat domestic sentiment amid feeble global cues. Besides, buying based on selective themes is also helping the index to sustain at higher levels. We recommend continuing with a stock-specific trading approach and using intermediate dips to add quality stocks till Nifty is holding above the 17,500 zone.

News

* BLS International announced its contract with Royal Thai Embassy in New Delhi for visa services. BLS will be accepting visa applications for Thailand from various cities of India including New Delhi, Himachal Pradesh, Punjab, Haryana, Rajasthan, Uttarakhand, Assam, North East, Chandigarh, Jalandhar,Jammu & Kashmir.

* Bharti Airtel and Ericsson have conducted India’s first 5G network demonstration in a rural geography. The demonstration took place in Bhaipur Bramanan village on the outskirts of Delhi/NCR using 5G trial spectrum allocated to Airtel by the Department of Telecom.

* Allied Digital Services has won a transformational, five year contract valued at Rs 165 cr from a large Global Manufacturing Conglomerate.

Derivative Ideas 

LTTS FUT has added around 5% in open interest as fresh long build up was seen in it. Current chart pattern also indicates further upmove in its price. We suggest buying in LTTS in cash market as per below levels.

Strategy:- BUY LTTS AT 4610-4615, sloss at 4550, trgt 4740.

Investment Pick - Metropolis Healthcare Ltd.

Incorporated in 1980, Metropolis Healthcare is one of the leading diagnostic players in India. It has a dominant share in the country’s 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. Metropolis has spread its footprint across 19 states & 210 cities.

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 sharp focus on increasing its B2C business and specialized testing would aid margin improvement. We expect Metropolis Revenue/EBITDA/PAT to grow at 17.9%/18.4%/20.2% over FY21-24E. We initiate with a Buy rating on the stock with a target price of Rs. 3,422.

Buy - Metropolis Healthcare Ltd @ 9-12 Months CMP 2,878.9 TGT 3,422

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