Religare Morning · PDF fileReligare Morning Digest January 25, 2017 Nifty Outlook ... Bajaj Corp Consumer Goods May 13, 2016 9.5% 393 393 Magma Fincorp Financial Services June 30,

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Religare Morning Digest

January 25, 2017

Nifty Outlook

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

NIFTY 8260 8500 8000

Nifty made a firm start and settled with decent gains, thanks to positive domestic cues and supportive global markets. Upbeat Asian markets and strengthening of rupee helped markets move up. In the latter half, short covering in index majors provided the extra push and helped the index to close around the day's high.

It's going to be a volatile session tomorrow due to F&O expiry and a run up to the Union Budget.

Amidst all, our view is positive on markets but we suggest taking precautionary measures like hedging your leveraged trades and maintaining a balanced trading portfolio. Risk takers can consider a bullish view on markets, specially in auto and private banks.

Sectors to watch

Sector Name Outlook

ENERGY STABLE

METALS STABLE

MEDIA STABLE

News

Religare Super Ideas**

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

Category Amt. MTD YTD

FII -289 -2540 12486

DII 520 2646 32147

NO OF CON-

TRACTS

TURNOVER IN CR

IDXFUTS 405505 27010

IDXOPT 5975596 404991

STKFUTS 1478974 97636

Derivative Ideas **

HCL Technologies reported a 2.3% QoQ growth in Net Profit to Rs. 2,062 Cr in Q3 against Rs. 2,015.6 Cr in Q2. Rupee revenue rose by 2.6% to Rs. 11,814.2 Cr against Rs. 11,519.2 Cr on a sequential basis. The company expects its full year dollar revenue guidance between 10-12% while maintaining their EBIT margin guidance of 19.5-20.5%.

HDFC Bank reported a 15.1% increase in Net Profit to Rs. 3,865.3 Cr as against Rs. 3,356.8 Cr in the corresponding quarter last year. NII increased 17.5% to Rs. 8,309.3 Cr, as against Rs. 7,068.5 Cr in the corresponding period last year. On the asset quality front, Gross NPAs stood at 1.05% against 1.02% in the previous quarter. Net NPAs stood at 0.32% against 0.3% previously.

TVS Motors reported a 10.4% increase in Net Profit to Rs. 132.7 Cr as against Rs. 120.2 Cr in the corresponding quarter last year. Total Revenue from operations increased by 2.8% to Rs. 3,239.6 Cr against Rs. 3,151.1 Cr previously. In Q3FY17, the overall two-wheeler sales of TVS Motor grew by 4% to 7 Lakh units as against 6.8 Lakh units in the corresponding quarter last year. Shares closed up 5.1%.

*FII & DII data as on 23rd January 2017

Scrip Buy/Sell CMP Initiation

Range SL* Target

PETRONET BUY 371.60 370-374 362 400

ONGC BUY 201.60 201-203 196 218

**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

RANGE SL

TAR-GET

MOTHERSUMI

FEB BUY 2500 330-332 324 350



January 25, 2017

Religare Super Ideas

Investment Pick - Sutlej Textiles and Industries Limited

Sutlej Textiles Industries Ltd. (STIL) is India's largest spun dyed yarn manufacturer and a leading textile player with presence across value chain from Yarn to

Home Textile. With a total installed capacity of 3.78 lacs spindles of Yarn and 8.4 mn metres of Home Textiles, STIL's state-of-the-art manufacturing facilities are located at Rajasthan, J&K, HP and Gujarat.

i) Leadership, diversified offerings, strong clientele and steady capacity additions places STIL in a comfortable position to exploit the available opportunities in

the Indian Textile sector, ii) Revenues are likely to grow by 6.6% CAGR over FY16-19E, led by capacity expansion and demand uptick, iii) Improved mix and operating leverage should result in healthy EBIDTA margin gains.

Scrip CMP Target Duration Recommendation Price

SUTLEJTEX 827.10 1,032 9-12 Months 812

MOTHERSUMI added around 40% of open interest

as fresh long positions. It has rolled 48% into next

contract so far. On charts, it is trading on verge of

resistance breakout from the congestion zone of

last four months or so. We suggest buying Feb

futures as per levels given below.

Strategy: BUY MOTHERSUMI FEB FUTS BETWEEN

330-332, SL 324, TARGET 350.

Derivative Ideas

Petronet LNG Limited (PETRONET) Oil & Natural Gas Corporation Limited

(ONGC)

From past two weeks, PETRONET is consolidating

just above its 100 EMA support, which is a positive

development. And, is also set for fresh breakout

from “Triangle” pattern on weekly chart. All this

goes to show bullish bias is here to last.

ONGC is in long-term up trend, firmly trading near

its 52-week high. It is among the few large-cap

stocks which were not impacted by the

demonetization of currency notes and kept their

overall bullish trend intact. At current juncture, it is

set for fresh breakout on daily chart. Hence, we

recommend buying in the mentioned range.



January 25, 2017

Religare Investment Calls

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

Tech Mahindra 7-Aug-15 534 600 12.4% 469.9

Kotak Mahindra Bank 19-Aug-15 688 900 30.8% 743.4

Glenmark Pharma 10-Sep-15 1,017 1,370 34.7% 874.8

Dabur India 10-Sep-15 275 325 18.1% 277.3

HUL 10-Sep-15 803 1,050 30.8% 860.4

Bajaj Corp 3-Nov-15 416 500 20.3% 393.2

Britannia Inds 23-Dec-15 2,896 3,600 24.3% 3,148.4

Nandan Denim 5-Jan-16 150 183 22.0% 120.0

Atul Auto 22-Mar-16 506 580 14.6% 431.6

Century Plyboards 5-Jul-16 207 271 30.9% 180.8

Greenply Industries 5-Jul-16 248 322 29.8% 255.0

Talwalkars Better Valkue Fitness 22-Aug-16 252 328 30.2% 228.7

Tv Today Network 29-Aug-16 300 388 29.3% 272.3

Jamna Auto 2-Sep-16 217 272 25.3% 192.7

SML Isuzu 26-Sep-16 1,300 1,560 20.0% 1,194.7

Swaraj Engines Ltd. 3-Oct-16 1,184 1,535 29.6% 1,370.2

Cigniti Technologies Ltd. 5-Oct-16 419 538 28.3% 468.6

Arman Financial Services 14-Oct-16 260 338 30.0% 182.3

Garware Wall Ropes Ltd. 23-Nov-16 567 686 21.0% 620.8

Indo Count Industries Ltd. 30-Nov-16 155 207 33.5% 174.9

VIP Industries Ltd. 30-Nov-16 118 166 41.0% 122.5

LIC Housing Finance 30-Nov-16 544 700 29.0% 526.4

Manpasand Beverages 30-Nov-16 626 854 36.4% 621.5

Zee Entertainment Enterprises 30-Nov-16 457 592 29.7% 479.4

Minda Corporation 06-Dec-16 95 117 23.2% 92.9

Credit Analysis and Research 23-Dec-16 1,355 1,694 25.0% 1,429.1

Fiem Industries 26-Dec-16 1,089 1,315 20.8% 1,105.8

Castrol India 26-Dec-16 358 483 34.9% 402.0

Wonderla Holidays 26-Dec-16 332 430 29.5% 370.4

Jain Irrigation Systems 26-Dec-16 82 104 26.8% 90.6

Sutlej Textiles 12-Jan-17 812 1,032 27.1% 827.1



January 25, 2017

Result Calendar — January 2017

Sun Mon Tue Wed Thu Fri Sat

22 23

3I INFOTECH LTD.

ASHOKA BUILDCON LTD.

ASIAN PAINTS LTD.

CHENNAI PETROLEUM CORPORATION LTD.

GIC HOUSING FINANCE LTD.

GUJARAT STATE FERTILIZ-ERS & CHEMICALS LTD.

HINDUSTAN UNILEVER LTD.

IDEA CELLULAR LTD.

BHARTI INFRATEL LTD.

JM FINANCIAL LTD.-$

JSW Holdings Limited

Larsen & Toubro Infotech Ltd

MARUTI SECURITIES LTD.

NOCIL LTD.

POWER FINANCE CORPO-RATION LTD.

TATA COMMUNICATIONS LTD.

24

AJANTA PHARMA LTD.

APTECH LTD.

Bharat Financial Inclusion Ltd

BHARTI AIRTEL LTD.

BIOCON LTD.

Crompton Greaves Consumer Electricals Ltd

GREENPLY INDUSTRIES LTD.

HCL TECHNOLOGIES LTD.

HDFC Bank Ltd

Heritage Foods Limited

HT MEDIA LTD.

IDBI BANK LTD.

INDIAN OVERSEAS BANK

KAJARIA CERAMICS LTD.

KARNATAKA BANK LTD.

L&T FINANCE HOLDINGS LTD.

MAHINDRA & MAHINDRA FINANCIAL SERVICES LTD.

STATE BANK OF MYSORE

NILKAMAL LTD.

PNB Housing Finance Ltd

SOMANY CERAMICS LTD.

SWARAJ ENGINES LTD.

TVS MOTOR COMPANY LTD.

WOCKHARDT LTD.

ZEE ENTERTAINMENT ENTER-PRISES LTD.

25

ALEMBIC PHARMACEUTICALS LTD.

ARVIND LTD.

ASHOK LEYLAND LTD.

ADITYA BIRLA MONEY LTD.-$

BLUE STAR LTD.

Cholamandalam Investment and Finance Company Ltd

COROMANDEL INTERNATIONAL LTD.

EVEREST INDUSTRIES LTD.

EXIDE INDUSTRIES LTD.

INDIABULLS REAL ESTATE LTD.

IDFC Bank Ltd

INDIAN BANK

KARUR VYSYA BANK LTD.

KIRLOSKAR OIL ENGINES LTD.

KOTAK MAHINDRA BANK LTD.

MARUTI SUZUKI INDIA LTD.

RAYMOND LTD.

SUPREME INDUSTRIES LTD.

TATA ELXSI LTD.

UPL Limited

VRL Logistics Ltd

WIPRO LTD.

26 27

BHARAT ELECTRONICS LTD.

BINANI INDUSTRIES LTD.

COLGATE-PALMOLIVE (INDIA) LTD.

COROMANDEL ENGINEERING COMPANY LTD.

EVEREADY INDUSTRIES INDIA LTD.

INDIA CEMENTS LTD.

ITC LTD.

JUST DIAL LTD.

SUN PHARMA ADVANCED RE-SEARCH COMPANY LTD.

TATA COFFEE LTD.

28

LARSEN & TOUBRO LTD.

Nath Bio-Genes (India) Ltd

ORIENT BELL LIMITED-$

OSWAL YARNS LTD.

Polyspin Exports Ltd

PRATIK PANELS LTD.

SHRENUJ & CO.LTD.

SIYARAM SILK MILLS LTD.-$

SARDA PROTEINS LTD.

SUNFLAG IRON & STEEL CO.LTD.

TECHINDIA NIRMAN LIMITED

THIRUMALAI CHEMICALS LTD.

TITAN BIOTECH LTD.

TITAN SECURITIES LTD.

TRIVENI GLASS LTD.-$

Veljan Denison Limited

VERTEX SECURITIES LTD.



January 25, 2017

Corporate Action Calendar — January 2017 (Interim Dividend)

Sun Mon Tue Wed Thu Fri Sat

22 23

BAJAJ CORP LTD.

TATA CONSULTANCY SERVICES LTD.

24 25

HIL LTD.

MINDTREE LTD.

TRIDENT LTD.

26 27 28



January 25, 2017

Current Portfolio and Performance Summary as on 24th January’17

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

Bajaj Corp Consumer Goods May 13, 2016 9.5% 393 393

Magma Fincorp Financial Services June 30, 2016 8.7% 109 97

Apollo Hospitals

Enterprises Healthcare Services July 29, 2016 9.0% 1,362 1,174

Emami Consumer Goods August 3, 2016 9.1% 1,151 1,009

Castrol India Energy August 5, 2016 9.8% 425 402

Punjab National Bank Financial Services October 3, 2016 9.7% 143 131

Minda Corporation Auto Ancillaries October 10, 2016 9.4% 109 93

Pidilite Industries Chemicals November 17, 2016 10.5% 617 656

Cash 24.4%

Total Total 100%



January 25, 2017

Historical Performance as on 24th January’17

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

Religare Alpha 7.3% -9.8% -3.0% 13.5% 23.0%

Nifty 6.1% -2.7% -1.6% 14.0% 7.5%

Outperformance 1.1% -7.1% -1.4% -0.5% 15.5%



January 25, 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.



January 25, 2017

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]

Siji A Philip [email protected]

Vipin Kumar [email protected]

Team Members



January 25, 2017

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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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S. No. Statement Answer

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No

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No

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Religare Morning · PDF fileReligare Morning Digest January 25, 2017 Nifty Outlook ... Bajaj Corp Consumer Goods May 13, 2016 9.5% 393 393 Magma Fincorp Financial Services June 30,