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Nifty Outlook

Markets started the week on a strong note and gained over a percent, in continuation to the prevailing up move. The benchmark index opened gap-up, tracking positive global cues and traded firm till the end. Consequently, Nifty reclaimed the 18,000 mark and settled around the day’s high. Amongst the sectors, all the indices ended in green wherein capital goods, realty and banking were the top gainers. The broader markets too participated and gained in the range of 0.8% - 1.3%.

Markets are showing tremendous resilience amid the rising COVID cases and the focus would now shift to the earnings season. Besides, key macro data such as IIP and CPI would also be on investors' radar. Amid all, global cues would continue to induce volatility. We’re now eyeing 18,100+ zone in Nifty. Apart from banking, participants should focus on metal, energy and select auto counters for long positions.

News

* Anupam Rasayan has signed a Letter of Intent (LOI) worth USD 95 million (Rs 700 cr as per the current exchange rate) with one of the top ten multinational crop protection company for supplying a new life science related active ingredient.

* The construction arm of Larsen & Toubro has secured an order from the esteemed National High Speed Rail Corporation Limited (NHSRCL), to design and construct Package No. – MAHSR-C-5 of the Mumbai Ahmedabad High Speed Rail Project, the first High Speed Rail corridor being implemented in the country.

* GNA Axles reported its numbers wherein Consolidated revenue was up 9.1% at Rs 301.3 cr. Consolidated EBITDA was down 20.1% at Rs 38.5 cr as against Rs 48.1 cr YoY. Consolidated net profit was down 37.4% at Rs 16.7 cr against Rs 26.6 cr.

Derivative Ideas

WIRPO shed 2.53% and closed at 693.5 on 10th Jan. A mixed trend is being seen in IT pack. WIPRO is witnessing a profit booking after its upmove from 640. Now Fresh Shorts is being seen in WIPRO Fut. We recommend to go Short in WIPRO with the PE option.

Strategy:- BUY WIPRO 690 PE @ 20-22, SLOSS AT 15, TRGT 34.

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 :-  3,216.25 Recommendation Price 3,335 Target 3,867 Duration 9-12 Months.

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