Religare Morning Digest 2 Religare Morning Digest September 6, 2016 Religare Super Ideas Investment Pick -Force Motors The company has presence across automobiles, components

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Religare Morning Digest

September 6, 2016

Nifty Outlook

Nifty upheld its consolidation bias on Friday as well and ended marginally higher, tracking renewed buying interest in select index majors in second half. In absence of any major trigger, participants were remained busy finding trades on stock specific front and counters from auto pack topped their list, due to announcement of monthly sales figure. Also, stocks from banking, pharma, infra space remained on traders’ radar.

We have long weekend ahead and our markets will react to the global cues in early trades on Tuesday. By and large, indications are bullish as markets have digested recently released macro-economic data, which were not so encouraging and holding at its 52 weeks high. So, maintain buy on dips approach, but with required caution in stock selection.

VWAP (Expiry till date) Max OI (Call) Max OI (Put)

NIFTY 8760 9000 8600

Sectors to watch

Sector Name Outlook

FMCG STABLE

BANKS STABLE

PHARMA STABLE

News

Religare Super Ideas**

FII & DII Cash Segment (Rs. in Cr.) Trade Stats

Category Amt. MTD YTD

FII -302 -302 37365

DII 308 308 -7512

NO OF CON-

TRACTS

TURNOVER IN CR

IDXFUTS 156970 11173

IDXOPT 1979607 142659

STKFUTS 524038 35770

Derivative Ideas **

Tata Motors’ Passenger and Commercial Vehicle sales in August stood at 43,061 vehicles, a growth of 6 percent, over 40,679 vehicles sales in August 2015. Domestic sales grew by 3% whereas exports were up by 27%. JLR's US sales grew by 46% to 9,329 vehicles, driven largely by recently launched F-PACE and XE.

Cadila Healthcare’s oral solid dosage drug facility, located at SEZ, Ahmedabad, received an establishment inspection report (EIR) from the USFDA. This is the third EIR for the company’s establishment in the current quarter. Shares went up by 2.3%.

Bajaj Auto reported a 5% fall in total sales at 3,25,347 units in August 2016, as against 3,41,965 unit sales in August 2015. Motorcycle sales decreased by 4% to 2,79,977 units from 2,90,436 units sold previously. Commercial Vehicle reported a 12% decline. Also, exports went down by 31%.

Instrument B/S Lot INITIATION

RANGE SL TARGET

BANKNIFTY

8th SEP 20200 CE

SELL 40 42-43 61 05

*FII & DII data as on 1st September 2016

Scrip Buy/Sell CMP Initiation

Range SL* Target

KOTAKBANK BUY 813.60 805-820 780 900

M&M BUY 1473.60 1460-1480 1400 1650

**Please note that the given technical and derivative recommendations are

"valid for taking position" only on recommended date and in the given range.

*Please note - Stoploss is on closing basis for delivery recommendation and

intraday basis for futures recommendation.



September 6, 2016

Religare Super Ideas

Investment Pick - Force Motors

The company has presence across automobiles, components and aggregates segments. Force's Traveller is one of the most popular inter and intra city mobility

vehicles in the country. In traveller segment, it is the market leader with market share of 67%. It has also forayed into defense, fire and rescue segment with the launch of paramilitary ambulances and emergency rescue vehicles.

Force Motors is engaged in the assembling of engines, axles and gear boxes for both Mercedes and BMW in India. It is the only company in the world to supply

engines to two of the world's biggest luxury car makers. It has set up two plants in Chennai and Pune to cater to BMW and Mercedes respectively with an aggregate investment of Rs. 300Cr.

Scrip CMP Target Duration Recommendation Price

FORCEMOT 3,060.10 3,940 9-12 Months 3,088

We are expecting Banknifty to be in 19900-20100

range. Call writing was seen at 20200 strike.

Strategy—SELL BANKNIFTY 8th SEPTEMBER 20200

CE BETWEEN 42-43, SL 61, TARGET 5.

Derivative Ideas

Kotak Mahindra Bank Limited

(KOTAKBANK)

After long wait, KOTAKBANK managed to cross

790 resistance barrier on daily chart. Post this,

from past two trading sessions, it is trading

sideways in narrow range, this can be termed

consolidation at higher levels. These are healthy

developments indicating bullish bias to continue.

Two and half year long consolidation phase came

to an end in July this year when M&M surpassed

1415 levels. Since then, it is consolidating at the

higher levels. We firmly believe, 1400 is strong

support and bullish bias will persist till it is trading

above this level on closing basis.

Mahindra & Mahindra Limited (M&M)



September 6, 2016

Result Calendar— September 2016

Sun Mon Tue Wed Thu Fri Sat

04 05

INTERLINK PETROLEUM LTD.

MALWA COTTON SPINNING MILLS LTD.

PETRONET LNG LTD.

SIMPLEX INFRASTRUCTURES LTD.

06

ELECTROSTEEL STEELS LTD.

HMT LTD.

JINDAL POLY FILMS LTD.

KOLTE-PATIL DEVELOPERS LTD.

NITIN FIRE PROTECTION INDUSTRIES LTD.

OIL INDIA LTD.

Siti Networks Ltd

07

ASIAN HOTELS (EAST) LTD.

BHARAT HEAVY ELECTRI-CALS LTD.

CHENNAI PETROLEUM COR-PORATION LTD.

DCW LTD.

IP RINGS LTD.-$

OIL AND NATURAL GAS CORPORATION LTD.

Precision Camshafts Ltd

Swelect Energy Systems Limited-$

08

APIS INDIA LTD.

ESSAR SHIPPING LTD.

HINDUSTAN COMPOSITES LTD.

Nagarjuna Fertilizers and Chemicals Ltd

PURAVANKARA PROJECTS LTD.

STEEL AUTHORITY OF INDIA LTD.

TV TODAY NETWORK LTD.

VENKY'S (INDIA) LTD.

ZUARI AGRO CHEMICALS LTD.

ZUARI GLOBAL LTD.

09

COAL INDIA LTD.

GUJARAT STATE PETRONET LTD.

NATIONAL ALUMINIUM CO.LTD.

RESPONSIVE INDUSTRIES LTD.

SJVN Ltd

Sobha Limited

TIMKEN INDIA LTD.

ZUARI AGRO CHEMICALS LTD.

ZUARI GLOBAL LTD.

10



September 6, 2016

Corporate Action Calendar — September 2016 (Cash Dividend)


04 05

06

JK Paper Ltd

Orient Bell Ltd

Bliss Gvs Pharma Ltd

Indsil Hydro Power and Manga-nese Ltd

Datamatics Global Services Ltd

Hindalco Industries Ltd

Sandur Manganese & Iron Ores Ltd/The

Sumedha Fiscal Services Ltd

Kauntam Papers Ltd

07

Nirlon Ltd

Grasim Industries Ltd

Grasim Industries Ltd

TT Ltd

Relaxo Footwears Ltd

Kanpur Plastipack Ltd

Tata Power Co Ltd

MOIL Ltd

Engineers India Ltd

Lakshmi Mills Co Ltd

NLC India Ltd

Lambodhara Textiles Ltd

BEML Ltd

Savera Industries Ltd

Magna Electro Castings Ltd

Orbit Exports Ltd

Sanco Trans Ltd

Pilani Investment & Industries Corp Ltd

08

Gujarat Hotels Ltd

Mangalam Cement Ltd

NBCC India Ltd

PNB Gilts Ltd

Emmbi Industries Ltd

Ugar Sugar Works Ltd

Nagarjuna Agrichem Ltd

Himatsingka Seide Ltd

Manali Petrochemicals Ltd

Indus Finance Ltd

Sicagen India Ltd

Escorts Ltd

GAIL India Ltd

Tips Industries Ltd

Pondy Oxides & Chemicals Ltd

Power Grid Corp of India Ltd

NHPC Ltd

Kolte-Patil Developers Ltd

Nahar Capital and Financial Ser-vices Ltd

Mazda Ltd

NTPC Ltd

Atul Auto Ltd

Nahar Spinning Mills Ltd

APL Apollo Tubes Ltd

Pokarna Ltd

Sun Pharmaceutical Industries Ltd

Cyient Ltd

09

Arihant Superstructures Ltd

Multi Commodity Exchange of India Ltd

Mold-Tek Packaging Ltd

Mold-Tek Technologies Ltd

Byke Hospitality Ltd/The

AK Capital Services Ltd

J Kumar Infraprojects Ltd

AIA Engineering Ltd

Frontline Securities Ltd

HT Media Ltd

KCP Sugar and Industries Corp Ltd

LT Foods Ltd

DHP India Ltd

PC Jeweller Ltd

NCL Industries Ltd

FIEM Industries Ltd

Beekay Steel Industries Ltd

Comfort Intech Ltd

Choice International Ltd

Diana Tea Co Ltd

10



September 6, 2016

Corporate Action Calendar— September 2016 (Acquisition)

Date Target Company Acquirer Company

9/6/2016 ADCC Infocad Ltd Private Investor

9/7/2016 Aayush Food & Herbs Ltd Private Investor

9/8/2016 Pervasive Commodities Ltd Enigma Merchants LLP

9/9/2016 Excel Crop Care Ltd Sumitomo Chemical Co Ltd

Economic Calendar — September 2016


04 05

Nikkei India PMI Services

Nikkei India PMI Composite

06 07 08 09

Trade Balance

Local Car Sales

Imports YoY

Exports YoY

10

Corporate Action Calendar— September 2016 (Stock Split)


04 05

06

Chembond Chemicals Ltd

07 08

Bajaj Finance Ltd

Mishtann Foods Ltd

09 10

Corporate Action Calendar— September 2016 ( Stock Dividend )


04 05

06

Techno Electric & Engineering Co Ltd

07 08

Ultracab India Ltd

WIM Plast Ltd

Bajaj Finance Ltd

09 10



September 6, 2016

Market Snapshot

Sectoral Indices Performance

Index Closing % Change % MTD % YTD

NIFTY Auto 10,053 1.14% 1.6% 21.8%

NIFTY Bank 19,883 0.48% 0.5% 17.5%

NIFTY Energy 9,503 -0.33% -1.7% 10.7%

Nifty Financial Services 8,207 0.49% 0.8% 16.3%

NIFTY FMCG 22,789 0.32% 0.8% 12.9%

NIFTY IT 10,528 -0.05% -0.2% -6.1%

NIFTY Media 2,942 0.32% -0.8% 11.7%

NIFTY Metal 2,571 -0.14% 0.2% 40.7%

NIFTY Pharma 11,555 0.80% 0.6% -3.4%

NIFTY PSU Bank 3,129 1.37% 0.6% 9.2%

NIFTY Realty 203 0.77% -1.3% 17.5%

Top Gainers - Nifty

Stock CMP (INR) % Chg % MTD % YTD

ADANIPORTS 268.20 3.67% 2.0% 2.8%

BANKBARODA 166.35 3.16% 2.1% 6.2%

BHARTIARTL 318.90 2.59% -3.8% -6.3%

TATAMTRDVR 351.90 2.21% 2.4% 21.6%

MARUTI 5,160.45 1.97% 2.1% 11.7%

Top Losers - Nifty

Stock CMP (INR) % Chg % MTD % YTD

COALINDIA 332.30 -1.69% -0.4% 0.8%

RELIANCE 1,013.35 -1.54% -4.4% -0.1%

ACC 1,669.55 -1.07% -2.4% 22.7%

INFY 1,031.85 -0.55% -0.4% -6.7%

HINDUNILVR 920.75 -0.55% 0.4% 6.7%

Bulk Deals - NSE

Security Name Client Name Buy/Sell Quantity Price Value (in Cr.)

Welspun India Limited WASATCH EMERGING MARKETS SMALL CAP FUND BUY 6362881 50.89 32.38

GHCL Limited BHOOMI DISC. FAMILY TRUST SELL 1250000 257.37 32.17

GHCL Limited FRANKLIN TEMPLETON MUTUAL FUND BUY 1174893 257.4 30.24

Hindustan Construc Co. JMP SECURITIES PVT LTD SELL 4141491 32.66 13.53

Hindustan Construc Co. JMP SECURITIES PVT LTD BUY 3914408 32.71 12.80

GKW Limited ACCORD CAPITAL MARKETS PRIVATE BUY 62500 581 3.63

GKW Limited DALMIA SECURITIES PVT. LTD. SELL 62465 581 3.63

Lincoln Pharma Ltd AMBE SECURITIES PRIVATE LIMITED BUY 132620 239.2 3.17

Lincoln Pharma Ltd AMBE SECURITIES PRIVATE LIMITED SELL 132620 238.89 3.17

Ucal Fuel Systems Ltd NEON VINIMAY PRIVATE LIMITED BUY 146063 164.89 2.41

Delivery Spurt stocks

Stock Name Day's del. Vol. Del. Vol. Price

Shrenuj & Co. 1,509,268 16158% -2.33%

Chola- 4,687,329 14188% -5.79%

MBL Infrast 747,282 2930% -9.97%

Godfrey Phillips 184,774 2374% 8.01%

Mandhana Indus 484,263 2330% 4.96%

GTL Infra. 13,360,734 2188% -5.88%

Patel Engg. 1,196,258 956% 19.96%

HSIL 549,747 854% 2.95%

Hind.Construct. 16,711,299 813% 8.38%

ICRA 24,575 797% 0.33%

*Bulk deals data as on September 1, 2016



September 6, 2016

Current Portfolio and Performance Summary as on 2nd September’16

Stock Sector Entry Date Weight Reco price (`) CMP (`)

Bajaj Corp Consumer Goods May 13, 2016 9.4% 393 409

Reliance Industries Energy May 27, 2016 9.4% 970 1,013

Vinati Organics Chemicals June 28, 2016 10.1% 544 598

Magma Fincorp Financial Services June 30, 2016 8.4% 109 100

Sun Pharmaceutical

Industries Pharma July 15, 2016 9.6% 771 782

Apollo Hospitals

Enterprises Healthcare Services July 29, 2016 10.0% 1,362 1,374

Emami Consumer Goods August 3, 2016 10.0% 1,151 1,161

Castrol India Energy August 5, 2016 10.7% 425 460

Indiabulls Housing

Finance Financial Services August 8, 2016 10.1% 808 829

Cash 12.4%

Total Total 100%



September 6, 2016

Historical Performance as on 2nd September’16

Performance Matrix 1-Month 3-Month 6-Month 1-Year Since Inception

Religare Alpha 1.5% 9.9% 22.4% 11.5% 29.2%

Nifty 2.2% 7.2% 17.7% 12.6% 11.7%

Outperformance -0.6% 2.8% 4.7% -1.1% 17.5%



September 6, 2016

Research Product Basket

For cash market trading

Call / Product Call Frequency No. of calls Avg open call duration % funds allocated

Intraday Calls Intraday 2 - 3 < 1 day 25%

Live / RMD Calls Daily 3 - 4 3 - 4 days 30%

Master Pick Weekly 1 1 month 15%

Religare Alpha Opportunity NA 2 - 3 months 20%

Cash NA 10%

For 1L margin*

Total Per Call

25,000 8,000

30,000 4,000

15,000 5,000

20,000 As per weightage

10,000

Intraday Calls These calls are flashed live on Ms Lync and ODIN with the purpose of squaring off positions on the same day. As a policy, we restrict our

intraday cash market calls to less than 4 calls a day. Hence, funds should be allocated accordingly to have provision to trade in all calls.

Live / RMD Calls 2 super ideas are flashed in RMD daily with a view of 3-4 days. Additionally as per market opportunity, we flash live calls during the day

(including BTST calls). 3-4 such calls are made on a daily basis which might be open for 3-4 days. Funds should be allocated keeping in mind that

there will be 7-8 such open calls daily.

Master Pick This is our weekly recommendation shortlisted on the basis of techno-funda analysis. 15% of funds is recommended to be allocated for Master

Pick considering that there will be 3 open calls. The average open duration for this call will be 1 month.

Religare Alpha This is a portfolio of 8-10 stocks which are held with a view of 2-3 months. It is recommended to allocate 20% of funds for building this portfolio

which will provide stability to the overall trading portfolio.

Cash 10% surplus cash in the portfolio should be kept for the purposes of allocating it to opportunities as and when they arrive.

For derivative market trading

Call / Product Call Frequency No. of calls Avg open call duration % funds allocated

Derivative Ideas Daily 1 - 2 1 - 3 days 40%

Live calls Intraday / Daily 1 - 2 3 - 4 days 50%

Cash NA 10%

For 1L margin*

Total Per Call

40,000 40,000

50,000 50,000

10,000

Derivative Ideas 1 derivative idea is shared in RMD daily. It can be a plain vanilla F&O buy/sell call or an option strategy. Funds should be allocated assuming 2

such calls will be open at any time. These calls are open for 3-4 days on an average.

Live Calls These calls are flashed on MS Lync and ODIN during live market hours. These calls can be intraday or with a view of 2-3 days. Funds should be

allocated considering 2 such calls will be open at any time. 3/4 times, these calls will be on Nifty / Bank Nifty only.

Cash It is recommended to hold 10% cash to capitalize on any opportunity that may arise in markets.

For every client, the advisor must allocate a specific proportion of funds for trading and investing depending on the risk taking ability and willingness of the client

and their investment goals.

The below mentioned product basket tries to address the way to deal with the trading portfolio (cash/derivative) for optimum effectiveness of research calls.

It is recommended to divide your trading funds for various types of calls and not invest the entire amount for 1 or 2 calls only.



September 6, 2016

Hitesh Agrawal [email protected]

Ajay Pasari, CFA [email protected]

Ajit Mishra [email protected]

Archana Gude [email protected]

Gaurav Sharma [email protected]

Swati Saxena [email protected]

Manoj M Vayalar [email protected]

Mehernosh Khurshed Panthaki [email protected]

Vipin Kumar [email protected]

Team Members



September 6, 2016

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Documents

Religare Morning Digest 2 Religare Morning Digest September 6, 2016 Religare Super Ideas Investment Pick -Force Motors The company has presence across automobiles, components