Big Movers on D-St: What should investors do with Dr Lal Pathlabs, Metropolis Healthcare and MRPL?

Indian market snapped a 2-day winning streak on Wednesday and closed in the red. The S&P BSE Sensex fell by more than 100 points while the Nifty50 closed above 16,200 levels.

Sectorally, buying was seen in FMCG and healthcare while selling was visible in realty, public sector, telecom, and oil & gas stocks.

Stocks that were in focus include names like Dr Lal PathLabs, which was down more than 6 per cent, Metropolis Healthcare fell more than 9 per cent, and MRPL rose nearly 10 per cent.


Here's what Vijay Dhanotiya, Lead Technical Research at CapitalVia Global Research, recommends investors should do with these stocks when the market resumes trading today:

Dr Lal Path Labs and Metropolis Healthcare
On Wednesday, Dr Lal Path Labs and Metropolis Healthcare shares were under pressure. Both stocks from the pharma space have been in a downward trend since Monday, losing close to a third of their value in three days.

The stock's recent downturn stemmed mostly from Tata 1mg's disruption expectations in the diagnostic business. The business has introduced important tests including Thyroid Profile, Liver Function, Lipid Profile, and Diabetes Screening for Rs 100 per test on a pilot basis in Bengaluru.

With Tata's B2C disruptive strategy in the industry, diagnostic firms like Metropolis Healthcare and Dr Lal Path Labs, among others, are projected to see a significant drop in profitability of roughly 40-50 percent.

Technically, Metropolis has strong support at Rs 1,700. Below this selling pressure may continue till Rs 1,500 levels and Dr Reddy Laboratories already took good support at Rs 3,800, so no further decline is expected.

MRPL
Mangalore Refinery & Petrochemicals (MRPL) shares touched a three-year high of Rs 89.35 in Wednesday's trading, after rallying 10% on the BSE on hefty volumes.

In the last three trading days, shares of the state-owned refineries and marketing corporation has risen by 29%. The stock had already reached its all-time high in March of this year.

Fundamentally, MRPL is engaged in the business of refining crude oil. The company is a subsidiary of Oil and Natural Gas Corporation Limited (ONGC) which holds 71.63 per cent equity shares.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)