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Nifty Outlook

Markets traded volatile and lost over a percent, following weak global cues. After the gap down start, the benchmark inched lower in the first half however healthy buying in the banking space pared the losses significantly. However, continued pressure in the IT majors and a few other index majors capped the upside. Consequently, Nifty closed at 17,110; down by 1%. The broader indices performed in line and lost in the range of 0.7%-1.2%.

Excessive volatility on the global front is keeping our markets also on the edge. With the US FOMC meet behind us, we expect some stability now. However, the prevailing earnings season and upcoming Union budget would keep the participants on their toes. The recent buoyancy in the banking space is certainly encouraging but the other sectors should also support for any meaningful recovery. We feel it’s prudent to stay light and let the markets stabilise.

News

* La Opala reported its numbers wherein revenue was up 38.5% YoY to Rs. 108.6 cr. Its net profit grew by 28.3% at Rs. 32.5 cr.

* Wockhardt reported its Q3FY22 numbers wherein revenue was up 11.8% YoY at Rs 854 cr versus Rs 764 cr. It has posted net loss at Rs 6.8 cr in the quarter ended December 2021 as against profit of Rs 15.2 cr in a year ago period.

* Laurus Labs reported its Q3FY22 numbers wherein revenue was down 20.1% YoY. Its net profit was down 43.2% YoY.

Derivative Ideas

AXISBANK gained 2.88% and closed at 773.85 on 27th Jan. In the corrective phase of the broader market, Banking Index is looking stable and AXISBANK has not only been trading in sync but also leading its pack. The counter is trading above its important MAs. The scrip is poised to test its resistance at 820 levels. We recommend to go Long in AXISBANK.

Strategy:- BUY AXISBANK @ 762-766, SLOSS AT 748, TRGT 790.

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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