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Nifty Outlook

For yet another session, markets traded highly volatile and ended with gains of more than half a percent. Supportive global cues led to a gap up opening and thereafter the benchmark traded with positive bias throughout the session but with volatile swings. Consequently, the Nifty settled near day’s high at 17,325 levels, up by 0.6%. The broader markets continued to trade in-line with the benchmark. Mixed trend was witnessed on the sectoral front, wherein pharma, realty and financial were the top gainers while media and PSU banks were the losers.

In the near term, derivative monthly expiry and auto sales numbers will remain in focus. Meanwhile markets will continue to take cues from global peers. Also, volatility will continue to remain high, so we would suggest investors to focus on stocks selection and traders to keep hedge positions.

News

* Alembic Pharmaceuticals has entered into Share Purchase Agreement with Orbicular Pharmaceutical Technologies Pvt ltd, joint venture partner in Aleor Dermaceuticals ltd to acquire the 40% stake held by them in Aleor. Pursuant to said acquisition, Aleor becomes a wholly-owned subsidiary of the company.

* Bharat Oman Refineries ltd has selected Engineers India for providing consultancy services for electrolyser based green hydrogen plant at Bina refinery. It shall be one of the largest green hydrogen plants in the country with a capacity of ~8.5 TPD (20 MW).

* PNC Infratech has been declared as the L1 bidder for a NHAI Project of construction of 6 Lane with access controlled greenfield highway from km 26.000 to km 97.000, MH/KN Border (Badadal) to Maradgi S Andola section of NH – 150C (Package-II of Akkalkot to KN/TS Border section) on Hybrid Annuity Mode. The cost of the project is Rs 1575cr and it is to be constructed in 30 months and operated for 15 years post construction.

Derivative Ideas

DLF gained 2.52 % and closed at 372.95 on 29th Mar. The stock after taking the support at 300 levels has been inching higher for some time. Now after closing above its resistance at 365-370 zone, the counter is poised to test its next hurdle at 390. We recommend to go Long in DLF.

Strategy:- BUY DLF @ 365-368, SLOSS AT 358, TRGT 385

Religare New Year Pick - Medplus Health Services 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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