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Nifty Outlook

On a monthly expiry day, the markets had a rollercoaster ride. The start was weak amid a muted show of global peers due to concerns with regards to the rise in Omicron cases. As the day progressed the benchmark made several attempts to inch upwards but failed to sustain on the higher side. Further, selling pressure in sectors such as metals, PSU banks and Oil & Gas impacted sentiments. Finally the Nifty ended on a flat note at 17204 levels. The broader markets witnessed mixed trend wherein midcap ended lower by 0.4% while small-cap ended in the green, up by 0.2%.

Volatility and choppiness is likely to remain high in the coming session, so we maintain a cautious stance on the markets. Revival in the banking pack will be crucial for the markets. Meanwhile, global cues and upcoming domestic Auto sales numbers will be on radar. Besides, updates with regards to rise in Omicron cases in domestic as well as global markets will be key monitorable. Traders are expected to keep low leverage and hedged position.

News

* Granules India announced it has received approval from the USFDA for its generic Amphetamine mixed salts indicated for the treatment of Attention Deficit Hyperactivity Disorder (ADHD) and narcolepsy.

* SBI Card announced that it has collaborated with Paytm to enable cardholders to tokenize their cards on devices and make payments through Paytm.

* Gensol announced that it has bagged order worth 22.5cr for building solar power projects of 10.7 MWp cumulative capacity in Gujarat, Karnataka and Madhya Pradesh.

Derivative Ideas

WIPRO gained 1.48% and closed at 714.1 on 30th Dec. We’re seeing a Positive trend within the IT pack but WIPRO has been facing friction going upward until now. Now WIPRO gave a closing above its minor Resistance with the help of longs added in WIPRO Fut. The Scrip is poised to test its ATH at 740 level. We recommend to go Long in WIPRO.

Strategy:- BUY WIPRO @ 707-710, SLOSS AT 699, TRGT 725.

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 :-  3,437.1 Recommendation Price 3,335 Target 3,867 Duration 9-12 Months.

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