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Nifty Outlook

Markets shed nearly a percent in a volatile trading session, in continuation to the prevailing consolidation phase. The benchmark oscillated in a range before finally settling in the red. Mixed global cues were weighing on the sentiment which triggered profit taking across the board. Among the sectors, most indices ended lower and the broader indices also closed in the red.

We may see a further decline in the Nifty index and the 17,950-18,050 zone would act as a support. Volatility usually remains high during the corrective phase and earnings season is further adding to the choppiness. Keeping in mind the scenario, it’s prudent to maintain a few shorts also. The focus should be on earnings and global markets for cues.

News

* TV18 Broadcast Q3FY22 revenue was up 15.1% YoY at Rs 1,567.1cr News business saw sharp improvement in margin to 27.2% and it revenue was up 13% YoY. Entertainment business margin at 21.4% and its revenue gained 16% YoY.

* ICICI Securities Q3FY22 revenue was up 51.8% at Rs 941.6cr. Its net profit jumped 42.4% YoY at Rs 380.3cr.

* Network 18 Media & Investments Q3FY22 revenue stood at Rs 1,657.4cr versus Rs 1,422.5cr in the same quarter last fiscal. It operating EBITDA was up 15% YoY at Rs 373.1cr as against Rs 324.5cr and margin was at 22.5%.

Derivative Ideas

INDUSINDBK shed 2.27% and closed at 899.65 on 18th Jan. After the recent upmove, the scrip is showing profit taking along with its pack. However we feel the retracement to extend till 880 levels in the short term. We recommend to go Short in INDUSINDBK with PE option.

Strategy:- BUY INDUSINDBK 900 PE @ 16-18, SLOSS AT 12, TRGT 30.

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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