Religare Morning Digest · Religare Morning Digest April 26, 2017 Nifty Outlook ... strong surge in near future. PNB, after two weeks of consolidation, ... IDFC Bank Ltd INDIAN BANK

1 Disclaimer: http://www.religareonline.com/research/Disclaimer/

Religare Morning Digest

April 26, 2017

Nifty Outlook

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

NIFTY 9200 9300 9000

Jubilation continues as Nifty gained nearly a percent and made a new record high above 9300. Better than expected results from the oil&gas major, Reliance, triggered the initial up move which further supported by rotational buying in other index majors. Global cues too remained supportive and helped index to close around the day’s high.

We feel this momentum will extend further and expect Nifty to test 9400 shortly. The best part is that mostly sectors are participating in the rally and our preferred sectors viz. banking, auto and select NBFCs are leading from the front. We believe their outperformance will continue ahead as well so align your trades accordingly.

Sectors to watch

Sector Name Outlook

BANK STABLE

ENERGY STABLE

MEDIA STABLE

News

Religare Super Ideas**

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

Category Amt. MTD FYTD

FII -280 -4983 -4983

DII 984 5320 5320

NO OF CON-

TRACTS

TURNOVER IN CR

IDXFUTS 365605 27159

IDXOPT 5385047 408574

STKFUTS 1535977 112890

Derivative Ideas **

Indian Bank reported healthy performance in Q4FY17 as profit soared 3.4x to Rs 319.7crs compared with Rs 93.6crs in year-ago quarter despite higher provisions. Net interest income, operating profit and tax credit boosted profitability. Net interest income grew by 22.1% year-on-year to Rs 1,384.9crs in the quarter ended March 2017. Asset quality of the bank improved on sequential basis. Gross NPAs declined 22 bps quarter-on-quarter to 7.4% and net NPA as a percentage of net advances fell 37 bps to 4.3% in Q4FY17.

Jubilant Life Sciences received final approval from the US health regulator for olmesartan medoxomil tablets-5 mg, 20 mg, and 40 mg, used in the treatment of hypertension. Stock closed up 2%.

Welspun India reported a 22.5% fall in consolidated net profit at Rs154.4crs for Q4FY17.Total income of the company increased by 8.1% to Rs1,772.7crs during the quarter under review as against Rs1,639.3crs during the same period previous fiscal. Stock closed down 1%.

*FII & DII data as on 24th April 2017

Scrip Buy/Sell CMP Initiation

Range SL* Target

M&M BUY 1307.45 1305-

1310 1260 1410

PNB BUY 161.10 160-162 156 174

**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.

Instrument B/S Lot INITIATION

PRICE SL

TAR-GET

NIFTY

B 9300

MAY CE 75

116

188 304 B 9300

MAY PE 101



April 26, 2017

Religare Super Ideas

Investment Pick - Mayur Uniquoters Ltd

Mayur Uniquoters Ltd. (MUL) is the largest manufacturer of artificial leather/ PVC vinyl in India. The company is a leading synthetic leather supplier to branded

footwear, automotive and leather goods and garments companies in India and abroad. MUL enjoys 50% market share of organised industry, which mirrors its strong positioning and growth opportunities, in line with industry growth.

MUL's diversified clientele base, increasing exports sales, PU and PVC leather capacity addition augur well for company's future growth prospects. Competition

from unoragnised players weighed on FY17 earnings, however, we expect earnings to improve gradually. We estimate Net sales, EBITDA and PAT to grow at a CAGR of 10.7%, 14.8% and 14.5% over FY17-19E.

Scrip CMP Target Duration Recommendation Price

MAYURUNIQ 413.85 478 9-12 Months 380

Vix is indicating a 300 points either side move in

Nifty. We expect VIX to bottom out around current

levels. Hence, we suggest doing a long straddle in

Nifty May as per levels given below.

Strategy: BUY NIFTY MAY 9300 CE AT 116 & BUY

9300 PE AT 101, NET PREMIUM PAID 217, SL 188,

TARGET 304.

Derivative Ideas

Mahindra & Mahindra Limited (M&M) Punjab National Bank (PNB)

M&M has registered a fresh breakout from its

month long consolidation phase on the daily chart,

supported by decent rise in volume. Existence of

support of multiple moving averages combined

with the chart formation clearly pointing towards

strong surge in near future.

PNB, after two weeks of consolidation, has

witnessed fresh surge today i.e. 25 April and looks

all set to resume its recovery phase. Traders can

accumulate in the given range.



April 26, 2017

Religare Investment Calls

Name of the Company Reco Date Reco Price Target Price Upside % Previous day Closing Price

Nandan Denim 5-Jan-16 150 183 22.0% 119.3

Atul Auto 22-Mar-16 506 580 14.6% 429.2

Cigniti Technologies Ltd. 5-Oct-16 419 538 28.3% 326.6

Fiem Industries 26-Dec-16 1,089 1,315 20.8% 1,024.1

Force Motors 25-Jan-17 4,274 5,210 21.9% 4,662.9

Zee Entertainment Enterprises 27-Jan-17 498 592 18.8% 528.0

Swaraj Engines Ltd. 31-Jan-17 1,406 1,736 23.5% 1,664.6

Greenply Industries 3-Feb-17 268 304 13.4% 286.0

Manpasand Beverages 7-Feb-17 681 854 25.4% 710.4

Wonderla Holidays 7-Feb-17 380 430 13.1% 393.2

Century Plyboards 8-Feb-17 216 300 38.8% 266.8

NRB Bearings 9-Feb-17 108 132 22.2% 119.3

Tv Today Network 14-Feb-17 270 360 33.3% 273.6

CRISIL 14-Feb-17 2,078 2,540 22.2% 1,910.8

Sutlej Textiles 14-Feb-17 843 1,032 22.5% 942.4

Indo Count Industries Ltd. 17-Feb-17 164 207 26.2% 194.4

Talwalkars Better Value Fitness 20-Feb-17 217 328 51.1% 271.3

SML Isuzu 21-Feb-17 1,240 1,560 25.8% 1,342.0

Arman Financial Services 22-Feb-17 226 340 50.0% 198.1

Jamna Auto 28-Feb-17 209 272 30.1% 242.2

Castrol India 7-Mar-17 412 483 17.1% 442.7

Berger Paints (I) Ltd 15-Mar-17 230 273 18.7% 257.1

Avanti Feeds 16-Mar-17 715 945 32.2% 871.1

Huhtamaki PPL Ltd 30-Mar-17 228 287 26.0% 265.0

Bajaj Finance Ltd 31-Mar-17 1,170 1,421 21.5% 1,341.7

The Byke Hospitality 11-Apr-17 191 242 26.7% 209.1

Mayur Uniquoters Ltd 18-Apr-17 380 478 25.8% 413.9



April 26, 2017

Corporate Action Calendar — April 2017 (Stock Split)

Sun Mon Tue Wed Thu Fri Sat

23 24

Avance Technologies

25 26

BLS International Services Ltd

27 28 29

Corporate Action Calendar — April 2017 (Cash Dividend)


23 24 25

Sanofi India Ltd

26

Cairn India Ltd

Orient Paper & Industries Ltd

27

Elantas Beck India Ltd

Mold-Tek Technologies Ltd

28

ABB India Ltd

29

Economic Calendar — April 2017


23 24 25

Eight Infrastructure Industries

26 27 28 29

Corporate Action Calendar — April 2017 (Acquisition)

Date Target Company Acquirer Company

4/24/2017 Aurum Soft Systems Ltd Private Investor

4/25/2017 Rammaica India Ltd Private Investor

4/26/2017 Pritika Auto Industries Ltd Multiple acquirers

4/26/2017 Regency Investments Ltd Private Investor



April 26, 2017

Result Calendar — April 2017


23 24

APPLE CREDIT CORPORATION LTD.

HEXAWARE TECHNOLOGIES LTD.

Indiabulls Housing Finance Ltd

JSW Holdings Limited

PERSISTENT SYSTEMS LTD.

RALLIS INDIA LTD.

Regency Investments Ltd

RELIANCE INDUSTRIES LTD.

SANWARIA AGRO OILS LTD.-$

STANROSE MAFATLAL INVESTMENTS AND FINANCE LTD.

TIMES GUARANTY LTD.

ULTRATECH CEMENT LTD.

WENDT (INDIA) LTD.

25

ABans Enterprises Ltd

ACROW INDIA LTD.

AXIS BANK LTD.

CAN FIN HOMES LTD.

ICICI Prudential Life Insurance Company Ltd

IDFC Bank Ltd

INDIAN BANK

International Paper APPM Limited

KEWAL KIRAN CLOTHING LTD.

LIC HOUSING FINANCE LTD.

MAHINDRA & MAHINDRA FINANCIAL SERVICES LTD.

Mega Nirman and Industries Ltd

NUCLEUS SOFTWARE EXPORTS LTD.

PERSISTENT SYSTEMS LTD.

RAJASTHAN PETRO SYNTHETICS LTD.

SAVANT INFOCOMM LTD.

SIP INDUSTRIES LTD.

SWARAJ ENGINES LTD.

TAYO ROLLS LTD.-$

VERTEX SECURITIES LTD.

WIPRO LTD.

26

DHRUV ESTATES LTD.

FOSECO INDIA LTD.

Gujarat Bitumen Ltd

GIC HOUSING FINANCE LTD.

KPIT Technologies Limited

KSB PUMPS LTD.

LAKSHMI VILAS BANK LTD.

LKP Finance Limited

LKP Securities Ltd

PROGRESSIVE EXTRACTIONS & EXPORTS LTD.

SADHANA NITROCHEM LTD.

SUPREME PETROCHEM LTD.

SURAJ LTD.-$

TATA SPONGE IRON LTD.

VISHVPRABHA TRADING LTD.

27

BIOCON LTD.

EPC INDUSTRIE LTD.

FUTURISTIC SOLUTIONS LTD.

HATSUN AGRO PRODUCT LTD.

HIL LTD.

KOKUYO CAMLIN LTD.-$

KOTAK MAHINDRA BANK LTD.

Mahindra CIE Automotive Limited

MARAL OVERSEAS LTD.

MARUTI SUZUKI INDIA LTD.

MENON BEARINGS LTD.

SHRIRAM ASSET MANAGEMENT CO.LTD.

Syngene International Ltd

TATA ELXSI LTD.

TRANSWARRANTY FINANCE LTD.

TVS MOTOR COMPANY LTD.

28

AMBUJA CEMENTS LTD.

AUTOMOTIVE STAMP-INGS & ASSEMBLIES LTD.

BERVIN INVESTMENT & LEASING LTD.

ADITYA BIRLA MONEY LTD.-$

Cholamandalam Investment and Finance Company Ltd

COROMANDEL INTERNATIONAL LTD.

DEEPAK NITRITE LTD.-$

DIAMINES & CHEMICALS

DIC INDIA LTD.

FEDERAL BANK LTD.

IDFC LIMITED

KIRLOSKAR FERROUS INDUSTRIES LTD.

Navin Fluorine International Limited-$

SUPREME INDUSTRIES LTD.

SWARNA SECURITIES LTD.

UNIPHOS ENTERPRISES LTD.

UPL Limited

29

ASTRA MICROWAVE PRODUCTS LTD.

COROMANDEL ENGINEERING COMPANY

JSW Energy Ltd

MANGALYA SOFT-TECH LTD.

TRANSCORP INTERNATIONAL LTD.



April 26, 2017

Current Portfolio and Performance Summary as on 25th April’17

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

Emami Consumer Goods August 3, 2016 8.1% 1,151 1,021

Castrol India Energy August 5, 2016 9.5% 425 443

Sml Isuzu Auto February 6, 2017 9.7% 1,265 1,342

UPL Fertilisers & Pesticides March 17, 2017 10.0% 723 807

Amara Raja Batteries Auto March 22, 2017 10.8% 868 878

Cholamandalam Investment and Finance

Financial Services April 5, 2017 11.7% 975 1,107

Power Grid Corporation of India

Energy April 12, 2017 11.1% 200 209

Cash 29.0%

Total Total 100%



April 26, 2017

Historical Performance as on 25th April’17

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

Religare Alpha 12.8% 16.1% 3.7% 23.9% 39.9%

Nifty 2.2% 10.9% 8.0% 18.5% 18.0%

Outperformance 10.6% 5.2% -4.3% 5.4% 21.9%



April 26, 2017

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.



April 26, 2017

Hitesh Agrawal [email protected]

Ajay Pasari, CFA [email protected]

Ajit Mishra [email protected]

Archana Gude [email protected]

Manoj M Vayalar [email protected]

Mehernosh Khurshed Panthaki [email protected]

Siji A Philip [email protected]

Swati Saxena [email protected]

Vipin Kumar [email protected]

Team Members



April 26, 2017

Before you use this research report , please ensure to go through the disclosure inter-alia as required under Securities and Exchange Board of India (Research Analysts) Regulations, 2014 and Research Disclaimer at the following link : http://old.religareonline.com/research/Disclaimer/Disclaimer_RSL.html

Specific analyst(s) specific disclosure(s) inter-alia as required under Securities and Exchange Board of India (Research Analysts) Regulations, 2014 is/are as under:

Statements on ownership and material conflicts of interest , compensation– Research Analyst (RA)

[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]

Nature of Interest ( if answer to F (a) above is Yes : ……………………………………………………………………………………………………………………

Name(s) with Signature(s) of RA(s).

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

Copyright in this document vests exclusively with RSL. This information should not be reproduced or redistributed or passed on directly or indirectly in any form to any

other person or published, copied, in whole or in part, for any purpose, without prior written permission from RSL. We do not guarantee the integrity of any emails or attached files and are not responsible for any changes made to them by any other person.

S. No. Statement Answer

Yes No

I/we or any of my/our relative has any financial interest in the subject company? [If answer is yes, nature of Interest is given below this table] No

I/we or any of my/our relatives, have actual/beneficial ownership of one per cent. or more securities of the subject company, at the end of the month immediately preceding the date of publication of the research report or date of the public appearance?

No

I/we or any of my/our relative, has any other material conflict of interest at the time of publication of the research report or at the time of public appearance?

No

I/we have received any compensation from the subject company in the past twelve months? No

I/we have managed or co-managed public offering of securities for the subject company in the past twelve months? No

I/we have received any compensation for brokerage services from the subject company in the past twelve months? No

I/we have received any compensation for products or services other than brokerage services from the subject company in the past twelve months? No

I/we have received any compensation or other benefits from the subject company or third party in connection with the research report? No

I/we have served as an officer, director or employee of the subject company? No

I/we have been engaged in market making activity for the subject company? No

SS..No. Name(s) of RA.

Signtures of RA

Serial Question of question which the signing RA needs to make a separate declaration / answer

Yes No.

http://old.religareonline.com/research/Disclaimer/Disclaimer_RSL.html

Documents

Religare Morning Digest · Religare Morning Digest April 26, 2017 Nifty Outlook ... strong surge in near future. PNB, after two weeks of consolidation, ... IDFC Bank Ltd INDIAN BANK