Religare Morning Morning Digest January 31, 2017 Nifty Outlook ... EMAMI PAPER MILLS LTD. FIRSTSOURCE SOLUTIONS LTD. ... 1/31/2017 BSS Microfinance Pvt Ltd

  • View
    216

  • Download
    3

Embed Size (px)

Text of Religare Morning Morning Digest January 31, 2017 Nifty Outlook ... EMAMI PAPER MILLS LTD....

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

    Religare Morning Digest

    January 31, 2017

    Nifty Outlook

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

    NIFTY 8565 9000 8400

    Markets settled almost flat in a dull trading session today, mirroring global counterparts. Initially, it was the fear of recent immigration curbs from the US which spooked the markets across the globe, including ours. Also, participants preferred to book some profit after the recent surge, safeguarding their investments ahead of Union Budget.

    It's a normal pause on expected lines in the index; however, there's no shortage of trading opportunities on stock specific front. And, we feel it might continue tomorrow as well but with a positive tone. Investors should use dips to add quality stocks from auto, private banks and select NBFCs space. At the same time, limiting leveraged positions and keeping them hedged before the event is a good idea.

    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 212 -855 14171

    DII 483 4045 33546

    NO OF CON-

    TRACTS

    TURNOVER IN CR

    IDXFUTS 155473 10930

    IDXOPT 1900076 135040

    STKFUTS 607304 40647

    Derivative Ideas **

    Tech Mahindra reported a 31.3% increase in Net Profit to Rs. 844.9 Cr against Rs. 643.4 Cr in the last quarter. Total Income from Operations stood at Rs. 7,557.5 Cr against Rs. 7,167.4 Cr, up by 5.4% on a sequential basis. The company added 12 clients during the quarter, taking total active clients count to 837 in Q3.

    HDFC reported an 11.9% rise in standalone Net Profit to Rs. 1,701 Cr against Rs. 1,520.5 Cr in the corresponding quarter last year. Total Income increased 12% to Rs. 8,137.2 Cr as compared to Rs. 7,268.4 Cr in the corresponding quarter last year. Asset quality weakened as Gross NPAs stood at 0.81% for the quarter, against 0.76% previously.

    Vodafone confirmed that the company is in talks with AB Group for a merger between Idea and Vodafone India. The companies refused to share further details of the talks. Idea shares closed up 25.6%.

    *FII & DII data as on 27th January 2017

    Scrip Buy/Sell CMP Initiation

    Range SL* Target

    BRITANNIA BUY 3145 3140-

    3160 3060 3375

    LICHSGFIN BUY 559.30 558-565 540 615

    **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

    BANKNIFTY

    NIFTY

    B 2 FEB

    19000 PE 40 47

    70 142

    B 8900 CE 75 43

  • 2 Disclaimer: http://www.religareonline.com/research/Disclaimer/

    Religare Morning Digest

    January 31, 2017

    Religare Super Ideas

    Investment Pick - Zee Entertainment Enterprises Ltd

    Zee Entertainment Enterprises Ltd reported healthy Q3FY17 numbers amidst demonetisation woes. The company reported 3.4% yoy increase in net sales at Rs

    1,639crs. EBITDA shot up by 20% yoy to Rs 515.8crs. EBITDA margin improved by 438bps yoy to 31.5% led by cost optimisation. Net profit for the quarter stood at Rs 250.8crs, a growth of 8.6% over Q3FY16.

    The company's strong position across genres, presence in over the top market with Ditto TV, cash rich balance sheet augurs well for the company. We estimate

    revenue, EBITDA and PAT to grow at a CAGR of 11.3%, 10% and 12% over FY16-19E respectively. We maintain BUY on the stock with a price target of Rs 592.

    Scrip CMP Target Duration Recommendation Price

    ZEEL 496.35 592 9-12 Months 498

    Event Strategy We are anticipating VIX to shot

    up around 19%-19.50% levels in short term which

    will provide a possible move of 250+ points in any

    direction. Considering the present scenario, we

    suggest doing a option pair strategy in BANKNIFTY

    and NIFTY as per levels given below.

    Strategy: BUY BANKNIFTY 2 FEB 19000 PE @ 47 &

    BUY NIFTY FEB 8900 CE @ 43, NET PREMIUM PAID

    90, STOPLOSS AT 70, TARGET 142.

    Derivative Ideas

    Britannia Industries Limited (BRITANNIA) LIC Housing Finance Ltd (LICHSGFIN)

    BRITANNIA registered fresh buying after

    consolidation phase that lasted for couple of

    trading sessions. This up move was supported by

    decent volume, indicating buying interest at

    current levels. Hence, we recommend buying with

    mentioned levels.

    LICHSGFIN gained strength from the previous

    trading sessions after consolidating around its long

    and mid term averages (200/100) on daily chart. Its

    current chart pattern indicates that it is all set for

    up move towards higher levels. Hence, we believe

    traders can add fresh long positions in the

    mentioned range.

  • 3 Disclaimer: http://www.religareonline.com/research/Disclaimer/

    Religare Morning Digest

    January 31, 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% 471.6

    Kotak Mahindra Bank 19-Aug-15 688 900 30.8% 775.6

    Glenmark Pharma 10-Sep-15 1,017 1,370 34.7% 917.2

    Dabur India 10-Sep-15 275 325 18.1% 280.2

    HUL 10-Sep-15 803 1,050 30.8% 853.6

    Bajaj Corp 3-Nov-15 416 500 20.3% 376.1

    Britannia Inds 23-Dec-15 2,896 3,600 24.3% 3145.7

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

    Atul Auto 22-Mar-16 506 580 14.6% 425.7

    Century Plyboards 5-Jul-16 207 271 30.9% 199.8

    Greenply Industries 5-Jul-16 248 322 29.8% 266.8

    Talwalkars Better Valkue Fitness 22-Aug-16 252 328 30.2% 228.2

    Tv Today Network 29-Aug-16 300 388 29.3% 274.7

    Jamna Auto 2-Sep-16 217 272 25.3% 183.9

    SML Isuzu 26-Sep-16 1,300 1,560 20.0% 1216.4

    Swaraj Engines Ltd. 3-Oct-16 1,184 1,535 29.6% 1427.7

    Cigniti Technologies Ltd. 5-Oct-16 419 538 28.3% 441.6

    Arman Financial Services 14-Oct-16 260 338 30.0% 195.9

    Garware Wall Ropes Ltd. 23-Nov-16 567 686 21.0% 602.4

    Indo Count Industries Ltd. 30-Nov-16 155 207 33.5% 186.6

    VIP Industries Ltd. 30-Nov-16 118 166 41.0% 131.2

    Manpasand Beverages 30-Nov-16 626 854 36.4% 626.9

    Minda Corporation 06-Dec-16 95 117 23.2% 90.1

    Credit Analysis and Research 23-Dec-16 1,355 1,694 25.0% 1419.5

    Fiem Industries 26-Dec-16 1,089 1,315 20.8% 1088.7

    Castrol India 26-Dec-16 358 483 34.9% 413.2

    Wonderla Holidays 26-Dec-16 332 430 29.5% 371.0

    Jain Irrigation Systems 26-Dec-16 82 104 26.8% 95.0

    Sutlej Textiles 12-Jan-17 812 1,032 27.1% 839.3

    LIC Housing Finance 25-Jan-17 526 667 27.0% 559.5

    Force Motors 25-Jan-17 4,274 5,210 21.9% 4238.1

    Zee Entertainment Enterprises 27-Jan-17 498 592 18.8% 496.4

  • 4 Disclaimer: http://www.religareonline.com/research/Disclaimer/

    Religare Morning Digest

    January 31, 2017

    Result Calendar January 2017

    Sun Mon Tue Wed Thu Fri Sat

    29 30

    BAJAJ FINSERV LTD.

    Bajaj Finance Limited

    Dalmia Bharat Sugar and Industries Ltd

    DISH TV INDIA LTD.

    EMAMI LTD.-$

    EMKAY GLOBAL FINANCIAL SERVICES LTD.

    ENTERPRISE INTERNATIONAL LTD.

    GODREJ CONSUMER PRODUCTS LTD.

    GRASIM INDUSTRIES LTD.

    HOUSING DEVELOPMENT FINANCE CORP.LTD.

    INDRAPRASTHA MEDICAL CORP.LTD.

    KITEX GARMENTS LTD.

    MAHINDRA LIFESPACE DEVELOP-ERS LTD.

    NAVA BHARAT VENTURES LTD.

    OMAX AUTOS LTD.

    PFIZER LTD.

    SAINT-GOBAIN SEKURIT INDIA LTD.

    SHREE CEMENT LTD.

    SHRIRAM CITY UNION FINANCE LTD.

    SIMPLEX MILLS COMPANY LTD.

    SHRIRAM ASSET MANAGEMENT CO.LTD.

    TECH MAHINDRA LTD.

    V-GUARD INDUSTRIES LTD.

    ZYDUS WELLNESS LTD.-$

    31

    BAJAJ AUTO LTD.

    BAJAJ HOLDINGS & INVESTMENT LTD.

    BPL LTD.

    CADILA HEALTHCARE LTD.

    CENTURY PLYBOARDS (I) LTD.-$

    CENTURY TEXTILES & INDUS-TRIES LTD.

    DABUR INDIA LTD.

    EMAMI PAPER MILLS LTD.

    FIRSTSOURCE SOLUTIONS LTD.

    GTL LTD.

    HAWKINS COOKERS LTD.-$

    HCL INFOSYSTEMS LTD.

    ICICI BANK LTD.

    IDFC LIMITED

    INDIAN OIL CORPORATION LTD.

    JSW STEEL LTD.

    KANSAI NEROLAC PAINTS LTD.

    KEC INTERNATIONAL LTD.

    BANK OF MAHARASHTRA

    MPHASIS LTD.

    OIL AND NATURAL GAS COR-PORATION LTD.

    SHOPPERS STOP LTD.

    UCO BANK

    WELSPUN INDIA LTD.

    Wonderla Holidays Ltd

    01

    APOLLO TYRES LTD.

    CUMMINS INDIA LTD.

    EICHER MOTORS LTD.

    PIDILITE INDUSTRIES LTD.

    PTL ENTERPRISES LTD.-$

    SHREE RENUKA SUGARS LTD.

    STATE BANK OF TRAV-ANCORE

    SIRHIND STEEL LTD.

    SUVEN LIFE SCIENCES LTD.

    TAJGVK HOTELS & RE-SORTS LTD.

    Tata Global Beverages Limited

    02

    AEGIS LOGISTICS LTD.

    GABRIEL INDIA LTD.-$

    GLENMARK PHARMACEUTICALS LTD.

    HSIL LTD.

    K.M.SUGAR MILLS LTD.

    MARICO LTD.

    Sharda Motor Industries Ltd

    VIJAYA BANK

    WALCHAND PEOPLEFIRST LTD.

    Z.F.STEERING GEAR (INDIA) LTD.-$

    03

    ABAN OFFSHORE LTD.

    Aditya Birla Fashion and Retail Ltd

    ACC LTD.

    DAL