IGI Logo

Nifty Outlook

Markets started the year 2022 on a firm note and gained over one and a half percent. After a strong uptick, the benchmark moved from strength to strength, thanks to healthy buying in the banking & financial pack which was closely followed by metal and auto. Amid all, participants overlooked rising Omicron cases and muted global cues. Amongst the benchmark indices, the Nifty settled near day’s high to close at 17,625.70 levels. The broader markets too ended in a positive range of 1.1%-1.3%.

The participation of the banking pack has changed the market mood of late while other things remain the same. However, the update on the COVID situation combined with the performance of the global markets would play a critical role ahead. Now, the next hurdle is at 17,750 in Nifty. We reiterate our view to focus on the selection of stocks while keeping a check on the leveraged positions.

News

* Fino Payments Bank announced that it has received the RBI approval for commencing International Remittance business under the Money Transfer Service Scheme.

* Nykaa announced that it has recently launched its first Luxe Store at Lulu Mall, Trivandrum. The plush 1000 sq. ft Nykaa Luxe Store offers a wide selection of makeup, skincare essentials, and fragrances from leading Indian and international brands.

* NCC announced that it has received five new orders totalling to Rs.1898cr (exclusive of GST) in the month of December, 2021. These orders are received from State Government agencies wherein 3 orders of Rs. 988cr pertain to Building Division and balance two orders of Rs.910cr pertain to Water Division.

Derivative Ideas

AXISBANK gained 2.62% and closed at 696.35 on 3rd Jan. We have seen a good upmove in BANKNIFTY which we believe should continue for some time now. AXISBANK is expected to trade in sync with its pack. The Scrip should test its Resistance which lies at 720 levels. We recommend to go Long in AXISBANK.

Strategy:- BUY AXISBANK @ 690-693, SLOSS AT 680, TRGT 710.

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 :-  3,459.65 Recommendation Price 3,335 Target 3,867 Duration 9-12 Months.

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.religareonline.com/disclaimer

SEBI Registration number is INZ000174330

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer