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Nifty Outlook

Markets traded under pressure and lost nearly a percent, in continuation to the previous session’s fall. The benchmark opened flat amid weak global cues however bears regained control as the day progressed and pushed the index gradually lower. Among the sectors, profit booking in IT, financials and FMCG sectors impacted sentiments. Consequently, the Nifty settled closer to 17,938; down by 0.96%. The broader markets showed some resilience and ended almost on a flat note.

Weak global cues like rising US bond yields and crude at record highs are taking a toll on markets across the globe including ours. Besides, there's nothing much to support from the domestic front as well. At the top of it, volatility, due to the earnings, is further adding to the participants’ worries. Amid all, we reiterate our positive view on markets and suggest utilising dips to add quality stocks. Nifty has next support at 17,800 and major around 17600 zone.

News

* Saregama India posted Q3FY22 revenue at Rs 150.3cr, up by 12.3% YoY. Its net profit jump 37.4% YoY to Rs 43.4cr.

* Hitachi Energy India announced that it has won orders exceeding Rs 160cr for its key electric components to support the electrification of the country’s rail routes.

* Jubilant FoodWorks announced that it has launched the iconic US Fried Chicken brand Popeyes in India, with the grand opening of its first restaurant in Bengaluru today

Derivative Ideas

TATAMOTORS gained 1.97% and closed at 520.85 on 19th Jan. The Scrip has shown good upmove after taking the support at 480 levels. With incremental volumes and after taking support at 90 EMA on hourly chart, TATAMOTORS is poised to test its Resistance at 540 levels. We recommend to go Long in TATAMOTORS.

Strategy:- BUY TATAMOTORS @ 513-516 SLOSS AT 500 TRGT 540

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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