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Nifty Outlook

Markets started the week on a volatile note but finally ended marginally higher. The benchmark opened flat amid mixed global cues but profit taking in the first half dragged the index lower. However, healthy buying in selected banking, auto and metals sectors pared the intraday losses and pushed the index to a day’s high. Consequently, the Nifty ended with gains of 0.4% to close at 17,222 levels. Most sectoral indices ended higher in line with the benchmark however the broader indices underperformed and lost in the range of 0.2-0.7%.

Mixed global cues combined with a lack of any domestic trigger are causing volatile swings in the index. However, the rotational buying in select index majors is helping the benchmark to hold at higher levels. Going ahead, a decisive break above 17,350 in Nifty would fuel further surge else consolidation will continue. Meanwhile, traders should continue with a hedged approach

News

* Reliance Industries telecom arm Jio announced the launch of ‘calendar month validity’ prepaid plan. The Rs 259 plan allowed users unlimited data & calling benefits for 1 calendar month.

* Aster DM Healthcare announced that the company has signed a memorandum of understanding (MoU) with Tamil Nadu to set up healthcare facilities. The MoU proposes an investment of Rs 500cr in hospitals, pharmacies and laboratories in the state.

* Mahanadi Mines and Minerals Pvt. Ltd. and MP Natural Resources Pvt. Ltd., wholly owned subsidiaries of Adani Enterprises, recently participated in the tenders invited by Nominated Authority, Ministry of Coal and Government of India and declared as successful bidders.

Derivative Ideas

CIPLA gained 0.36% and closed at 1017.1 on 28th Mar. The stock after given a breakout from a rectangular pattern now seeing some pullback. We believe CIPLA will resume its uptrend soon taking support at current levels. Holding 980, the counter is poised to test its ATH again. We recommend to go Long in CIPLA.

Strategy:- BUY CIPLA @ 1005-1010, SLOSS AT 980, TRGT 1060.

Religare New Year Pick - INOX Leisure Ltd.

Medplus Health Services Ltd (MHS) is the second-largest pharmacy retailer in India, in terms of revenue from operations and the number of stores as of FY21. They offer a wide range of products, including (i) pharmaceutical and wellness products and (ii) FMCG products such as home and personal care. They operate a retail network of over 2,477 stores and have a primary warehouse in cities such as Karnataka, Tamil Nadu, Telangana, Andhra Pradesh, West Bengal, Maharashtra and Odisha. As of March 31, 2021, they ranked 1st in Chennai and Bangalore and 2nd in Hyderabad and Kolkata, in terms of the number of stores.

Medplus has strongly positioned itself in the retail pharmacy space given its wide product offering, genuine and good quality pharmaceutical products offering, online & offline operations and last-mile delivery capabilities (2-hours delivery). Further, the company has a large scale of operations and offers competitive pricing to their customers which will continue to drive market share. Going forward, the company intends to grow its omnichannel platform with a hyper-local delivery model, enter new geographies and increase the share of private labels which will aid revenue growth.

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