Religare Morning Digest - · PDF file*Please note - Stoploss is on ... Housing Development Finance Corporation Limited (HDFC) ... Religare Morning Digest August 22, 2016. Religare

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Religare Morning Digest

August 22, 2016

Nifty Outlook

Nifty traded dull on Friday and ended almost unchanged, in line with its prevailing consolidation phase. Lack of any fresh trigger capped movement in index; however, activities in broader market kept the traders busy. Again, it was banking pack which gained traction for second day in a row while other sectoral indices traded mixed.

It’s almost a month that Nifty is hovering in a range while holding around its immediate high i.e. 8700. But, its divergence with banking index is raising concern now and any fall below 8600 could trigger profit taking in the expiry week. So, we reiterate our view to maintain positive yet cautious stance at current level and keep a check on number of trading positions.

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

NIFTY 8655 8800 8500

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 162 7325 34045

DII -14 -4968 -8113

NO OF CON-

TRACTS

TURNOVER IN CR

IDXFUTS 179434 12525

IDXOPT 3130838 213810

STKFUTS 617509 43731

Sun TV Network Limited reported a 19% increase in Net profit to Rs. 233 Cr for Q1 as against Rs. 195.8 Cr for the same period last quarter. The Total Income from Operations increased by 10.3% to Rs. 760.8 Cr as compared to Rs. 689.4 Cr previously.

NHPC successfully commissioned the 4th unit of the Teesta Low Dam Hydro-Electricity Project. The electricity generated will be allocated fully to the state of West Bengal and shall be supplied through West Bengal State Electricity Distribution Company (WBSEDCL).

Dilip Buildcon bagged a Rs. 2,016 Cr project from the National Highway Authority of India (NHAI) for a four-lane highway between Lucknow and Sultanpur under the National Highways Development Project (NHDP).

Derivative Ideas **

Instrument B/S Lot INITIATION

RANGE SL TARGET

HINDPETRO BUY 700 1230-1235 1210 1285

*FII & DII data as on 18th August 2016

Scrip Buy/Sell CMP Initiation

Range SL* Target

HDFC BUY 1369.40 1360-1370 1320 1475

LUPIN SELL SEP

FUT 1584.85 1580-1590 1625 1485

**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.



August 22, 2016

Religare Super Ideas

Investment Pick - Garware Wall Ropes Limited

Garware Wall Ropes Ltd manufactures various range of products like ropes, nets and aquaculture cages for capturing and breeding fish; nets for sports such as tennis, cricket; insect, shade nets for agriculture; ropes and safety nets for shipping and industrial; coated fabrics for covers, tents, etc and provides geosynthetic solutions for water & waste management and erosion-control applications.

Key Rationales: i) Diversified product offerings with strong presence across verticals and geographies, ii) constant focus on product innovations, iii) immense growth opportunity in the recently forayed defence sector, iv) Revenue growth to improve over FY16-18E, v) Margins to improve with higher contribution from exports; vi) Healthy cash flows, low leverage and improving return ratios.

Scrip CMP Target Duration Recommendation Price

GARWALLROP 514.65 560 9-12 Months 419

HINDPETRO added 2.2% of open interest as long

buildup. Daily vwap is around 1233 levels. On charts,

it has breached past Six days congestion zone on

the higher side and also trading above important

long term as well as short term moving averages on

charts. We expect it to rally till 1285 levels in short

term.

Strategy:- BUY HINDPETRO AUGUST FUTS

BETWEEN 1230-1235, SL 1210, TARGET 1285.

Derivative Ideas

Housing Development Finance Corporation

Limited (HDFC)

Lupin Limited (LUPIN)

Post breakout from declining channel formation on

weekly chart, HDFC is firmly consolidating at higher

levels. Good amount of volume has also come in

past couple of sessions, this indicates buyer’s

interest at current levels. Hence, it is wise to buy in

mentioned range.

LUPIN failed to sustain above its important long

and short-term averages (200/100/50 EMA) on

daily chart and steep sell-off was witnessed

thereafter. At current juncture, it has formed fresh

selling pivot; hence, decline is more likely in coming

sessions.



August 22, 2016

Result Calendar— August 2016

Sun Mon Tue Wed Thu Fri Sat

21 22

ALLCARGO LOGISTICS LTD.

HIMACHAL FUTURISTIC COMMUNICATIONS LTD.

HINDUSTAN COPPER LTD.

HINDUSTAN PETROLEUM CORPORATION LTD.

JINDAL PHOTO LTD.

Jindal Poly Investment and Finance Company Ltd

NTPC LTD.

SHREE RENUKA SUGARS LTD.

SPML Infra Limited

23

GILLETTE INDIA LTD.

HATHWAY BHAWANI CABLETEL & DATACOM LTD.

INDO COUNT INDUSTRIES LTD.

JAI CORP LTD.

NECTAR LIFESCIENCES LTD.

TATA POWER CO.LTD.

24

Infinite Computer Solutions (India) Ltd

MAN INFRACONSTRUCTION LTD.

NAVA BHARAT VENTURES LTD.

S.P. Apparels Ltd

25

GAMMON INFRASTRUCTURE PROJECTS LTD.

JOLLY MERCHANDISE LTD.

JYOTI STRUCTURES LTD.

Polymac Thermoformers Ltd

Sang Froid Labs (India) Ltd

26

ABBOTT INDIA LTD.

FINOLEX INDUSTRIES LTD.

J.B.CHEMICALS & PHARMACEUTICALS LTD.

JBF INDUSTRIES LTD.

PROCTER & GAMBLE HYGIENE & HEALTH CARE LTD.

SHILPA MEDICARE LTD.

TRIVENI ENGINEERING & INDUSTRIES LTD.

27

INDIA NIPPON ELECTRICALS LTD.

INDO RAMA SYNTHETICS (INDIA) LTD.

RATNAMANI METALS & TUBES LTD.-$

SAMTEX FASHIONS LTD.-$

TRANS FINANCIAL RE-SOURCES LTD.



August 22, 2016

Corporate Action Calendar— August 2016 (Cash Dividend)


21 22

Joonktollee Tea & Industries Ltd

Gloster Ltd

HB Portfolio Ltd

Rural Electrification Corp Ltd

Rural Electrification Corp Ltd

Sundaram Multi Pap Ltd

Shree Cement Ltd

Manappuram Finance Ltd

23

I G Petrochemicals Ltd

TV Today Network Ltd

Goodyear India Ltd

Jaysynth Dyestuff India Ltd

Competent Automobiles Co Ltd

Mack Trading Co Ltd

Granules India Ltd

Balrampur Chini Mills Ltd

24

Pidilite Industries Ltd

Kanoria Chemicals & Industries Ltd

Jubilant Foodworks Ltd

Jubilant Foodworks Ltd

Thomas Cook India Ltd

Fomento Resorts & Hotels Ltd

25

International Travel House Ltd

Jay Bharat Maruti Ltd

Ushdev International Ltd

Gujarat Narmada Valley Fertilizers & Chemicals Ltd

JK Tyre & Industries Ltd

Vimta Labs Ltd

Creative Castings Ltd

Sterlite Technologies Ltd

Shri Dinesh Mills Ltd

26

Finolex Cables Ltd

27

Corporate Action Calendar— August 2016 (Stock Split)


21 22 23 24

Pil Italica Lifestyle Ltd

25 26

27

Corporate Action Calendar— August 2016 ( Stock Buyback & Stock Dividend )


21 22 23 24

Novartis India Ltd

25 26

Power Finance Corp Ltd

27

Corporate Action Calendar— August 2016 (Acquisition)

Date Target Company Acquirer Company

8/25/2016 Crompton Greaves Consumer Electricals Ltd Multiple acquirers

Economic Calendar — August 2016


21 22 23 24 25 26

Eight Infrastructure Industries

27



August 22, 2016

Market Snapshot

Sectoral Indices Performance

Index Closing % Change % MTD % YTD

NIFTY Auto 9,679 0.33% 2.2% 17.2%

NIFTY Bank 19,353 1.64% 2.1% 14.4%

NIFTY Energy 9,508 1.28% 2.1% 10.8%

Nifty Financial Services 7,947 1.18% 1.4% 12.6%

NIFTY FMCG 22,262 -0.36% 0.1% 10.2%

NIFTY IT 10,784 -0.23% -1.2% -3.8%

NIFTY Media 2,841 1.05% 0.9% 7.9%

NIFTY Metal 2,595 -0.18% 7.1% 42.1%

NIFTY Pharma 11,565 0.60% -1.1% -3.3%

NIFTY PSU Bank 3,029 1.10% 5.8% 5.7%

NIFTY Realty 211 1.27% 1.9% 22.5%

Top Gainers - Nifty

Stock CMP (INR) % Chg % MTD % YTD

BANKBARODA 161.65 4.63% 6.6% 3.2%

SBIN 258.50 4.07% 12.7% 15.2%

HINDALCO 158.95 2.98% 19.0% 87.6%

AMBUJACEM 276.45 1.60% 1.9% 36.1%

AUROPHARMA 765.05 1.51% -3.3% -12.7%

Top Losers - Nifty

Stock CMP (INR) % Chg % MTD % YTD

EICHERMOT 21,777.30 -1.79% -3.0% 29.2%

INFRATEL 342.35 -1.58% -13.4% -20.0%

COALINDIA 334.15 -1.45% 1.9% 1.3%

TCS 2,603.50 -1.33% -0.6% 6.8%

WIPRO 520.10 -0.95% -4.6% -7.1%

Bulk Deals - NSE

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

The India Cements Limited ALPHAGREP SECURITIES PRIVATE LIMITED SELL 1841235 127.3 23.44

The India Cements Limited ALPHAGREP SECURITIES PRIVATE LIMITED BUY 1841235 127.14 23.41

Welspun Corp Limited MGN AGRO PROPERTIES PRIVATE LIMITED BUY 1665087 86.3 14.37

Upper Ganges Sug & Ind N.K. SECURITIES SELL 136275 349.59 4.76

Upper Ganges Sug & Ind N.K. SECURITIES BUY 136154 349.36 4.76

Upper Ganges Sug & Ind AJAY ASSET MANAGEMENT PRIVATE LIM- BUY 92876 358.9 3.33

Upper Ganges Sug & Ind AJAY ASSET MANAGEMENT PRIVATE LIM- SELL 92147 360.02 3.32

Bhageria Industries Ltd N.K. SECURITIES SELL 57470 347.57 2.00

Bhageria Industries Ltd N.K. SECURITIES BUY 57470 347.18 2.00

Sunil Hitech Engr Ltd ASHROJ CREDIT INDIA PRIVATE LIMITED BUY 103672 185.66 1.92

Delivery Spurt stocks

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

Shrenuj & Co. 1,490,682 15957% 2.27%

S B T 388,143 1598% 5.54%

Phoenix Mills 864,459 1202% -2.59%

Mandhana Indus 221,960 1014% -1.36%

Nava Bharat 194,320 1010% 0.95%

St Bk of Bikaner 247,249 953% 1.69%

Fortis Health. 3,439,403 882% -2.97%

MBL Infrast 235,292 854% -3.49%

Mercator 2,974,892 850% 6.18%

S A I L 13,902,177 795% 3.23%

*Bulk deals data as on August 18, 2016

*Sectoral Indices data as on August 18, 2016



August 22, 2016

Current Portfolio and Performance Summary as on 19th August’16

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

Bajaj Corp Consumer Goods May 13, 2016 9.4% 393 404

Reliance Industries Energy May 27, 2016 9.6% 970 1,015

Vinati Organics Chemicals June 28, 2016 9.6% 544 561

Magma Fincorp Financial Services June 30, 2016 8.9% 109 103

Sun Pharmaceutical

Industries Pharma July 15, 2016 9.7% 771 784

Apollo Hospitals

Enterprises Healthcare Services July 29, 2016 10.3% 1,362 1,393

Emami Consumer Goods August 3, 2016 10.3% 1,151 1,182

Castrol India Energy August 5, 2016 9.6% 425 406

Indiabulls Housing

Finance Financial Services August 8, 2016 9.9% 808 800

Cash 12.6%

Total Total 100%



August 22, 2016

Historical Performance as on 19th August’16

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

Religare Alpha 4.35% 10.73% 22.59% 4.97% 27.10%

Nifty 1.62% 11.35% 20.19% 3.51% 9.93%

Outperformance 2.73% -0.62% 2.40% 1.46% 17.18%



August 22, 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.



August 22, 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



August 22, 2016

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[Please note that only in case of multiple RAs, if in the event answers differ inter-se between the RAs, then RA specific answer with respect to questions under F (a) to F(j) below , are given separately]

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No

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No

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Religare Morning Digest - · PDF file*Please note - Stoploss is on ... Housing Development Finance Corporation Limited (HDFC) ... Religare Morning Digest August 22, 2016. Religare