Religare Morning · PDF fileof real estate major Unitech Ltd, in a case of alleged misappropriation of Rs 500 cr ... Religare Morning Digest December 23, 2016. Religare Morning Digest

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Religare Morning Digest

December 23, 2016

Nifty Outlook

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

NIFTY 8148 8300 8000

Markets upheld negative tone for seventh consecutive session and shed nearly a percent on Thursday. Feeble cues from Asian markets were weighing on sentiments in early trade, which further deteriorated with slide in select index majors as the day progressed. Besides, participants were maintaining cautious approach ahead of beginning of two-day GST Council meet. Mostly sectoral indices ended lower in line with benchmark, wherein metal and PSU banks lost maximum.

Nifty has slipped below the psychological mark of 8000 on Thursday and cues from the banking space are pointing toward further decline ahead. So, we suggest avoiding fresh long trades in index and advice keeping shorts as hedge to existing longs.

Sectors to watch

Sector Name Outlook

ENERGY STABLE

METALS STABLE

PHARMA WEAK

News

Religare Super Ideas**

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

Category Amt. MTD YTD

FII -1178 -5207 181819

DII 1058 2126 22487

NO OF CON-

TRACTS

TURNOVER IN CR

IDXFUTS 275195 17558

IDXOPT 7496355 503830

STKFUTS 543394 33908

Derivative Ideas **

Sun Pharma plans to acquire a branded oncology product Odomzo from Novartis for an upfront payment of USD 175 million and additional milestone payments. Sun Pharma Advanced Research Company, was also in the news and went up 7 percent after receiving complete response letter from the US health regulator for preservative-free eye drop.

Phoenix Mills shares spiked after the Canada Pension Fund signed non-binding term sheet to buy 49 percent stake in a subsidiary of the company over a 3-year period. The funds raised by subsidiary, ISML will be utilised for business development and growth purposes.

A Delhi court has cancelled the non-bailable warrants against the two managing directors of real estate major Unitech Ltd, in a case of alleged misappropriation of Rs 500 cr collected from investors for one of its housing projects.

*FII & DII data as on 21st December 2016

Scrip Buy/Sell CMP Initiation

Range SL* Target

BEL BUY 1394.25 1390-

1400 1350 1500

JSWENERGY SELL DEC

FUT 58.70 59-59.5 63 51.5

**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 TARGET

JET AIR-

WAYS DEC BUY 1000 338 374 350



December 23, 2016

Religare Super Ideas

Investment Pick - Minda Corporation

Minda Corporation is amongst the leading automotive component companies with a diversified product portfolio that encompasses Safety, Security & Restraint

Systems; Driver Information & Telematics Systems and Interior Systems for auto OEMs. These products cater to 2/3 wheelers, Passenger Vehicles, Commercial Vehicles and after-market.

We expect Minda Corp's total income to grow at CAGR of 19% between FY16-FY18E. Also profitability will improve further with recovery in demand, cost

reduction measures, localization efforts and focus on high yield products. At cmp of Rs. 95, the company is available at FY18E P/E of 12.2x, which we believe is attractive given its growth prospects and improving return ratios.

Scrip CMP Target Duration Recommendation Price

MINDACORP 89.90 117 9-12 Months 95

Jet airways has shown good long build up of

around 6.7% open interest in yesterday’s trade,

with vwap at 347.We expect the scrip to rally till

374 in the short term.

The highest Open interest is at 360 strike put and

400 strike call option.

Strategy: BUY Jet airways dec @350,sloss at

338,target 374.

Derivative Ideas

Bharat Electronics Limited (BEL) JSW Energy Limited (JSWENERGY)

BEL has retraced 61.8% of the rise 1267-1525, this

level is considered reversal level as per Fibonacci

theory. Yesterday, i.e. 22nd December, it recovered

sharply after testing these levels. Volume too

supported this up move. All this has further

strengthened our view that it will trade with

positive bias at least in near-term.

JSWENERGY is in long-term down trend and is

trading with bearish bias from quite some time.

Recently, it started drifting lower post some

retracement. Considering its over all chart pattern

and recent move, we strongly advocate short

selling this stock in mentioned range.



December 23, 2016

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% 474.0

Kotak Mahindra Bank 19-Aug-15 688 900 30.8% 713.2

Glenmark Pharma 10-Sep-15 1,017 1,370 34.7% 925.6

Dabur India 10-Sep-15 275 325 18.1% 265.5

HUL 10-Sep-15 803 1,050 30.8% 787.1

Bajaj Corp 3-Nov-15 416 500 20.3% 364.7

Britannia Inds 23-Dec-15 2,896 3,600 24.3% 2,810.7

Nandan Denim 5-Jan-16 150 183 22.0% 109.1

Atul Auto 22-Mar-16 506 580 14.6% 416.7

Century Plyboards 5-Jul-16 207 271 30.9% 155.1

Greenply Industries 5-Jul-16 248 322 29.8% 246.8

Talwalkars Better Valkue Fitness 22-Aug-16 252 328 30.2% 230.6

Tv Today Network 29-Aug-16 300 388 29.3% 258.3

Jamna Auto 2-Sep-16 217 272 25.3% 155.2

SML Isuzu 26-Sep-16 1,300 1,560 20.0% 1,022.0

Swaraj Engines Ltd. 3-Oct-16 1,184 1,535 29.6% 1,341.9

Cigniti Technologies Ltd. 5-Oct-16 419 538 28.3% 365.0

Arman Financial Services 14-Oct-16 260 338 30.0% 177.3

Castrol India Ltd. 18-Nov-16 401 504 26.0% 362.9

Garware Wall Ropes Ltd. 23-Nov-16 567 686 21.0% 631.2

Wonderla Holidays Ltd. 25-Nov-16 324 405 25.0% 342.3

Indo Count Industries Ltd. 30-Nov-16 155 207 33.5% 155.4

VIP Industries Ltd. 30-Nov-16 118 166 41.0% 116.7

LIC Housing Finance 30-Nov-16 544 700 29.0% 539.7

Manpasand Beverages 30-Nov-16 626 854 36.4% 547.7

Zee Entertainment Enterprises 30-Nov-16 457 592 29.7% 441.6

Minda Corporation 06-Dec-16 95 117 23.2% 89.9



December 23, 2016

Corporate Action Calendar — December 2016 (Dividend)

Sun Mon Tue Wed Thu Fri Sat

18 19

Lycos Internet Limited

20 21

BANNARI AMMAN SUGARS LTD.

JVL AGRO INDUSTRIES LTD.

22 23

24

Corporate Action Calendar — December 2016 (Stock Split)


18 19 20 21

SHREE GLOBAL TRADEFIN

22 23

24

Corporate Action Calendar — December 2016 (Stock Buyback)


18 19 20 21 22

Infinite Computer Solutions (India)

23

24



December 23, 2016

Current Portfolio and Performance Summary as on 22nd December’16

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

Bajaj Corp Consumer Goods May 13, 2016 9.3% 393 365

Magma Fincorp Financial Services June 30, 2016 9.8% 109 104

Apollo Hospitals

Enterprises Healthcare Services July 29, 2016 9.4% 1,362 1,159

Emami Consumer Goods August 3, 2016 9.2% 1,151 953

Castrol India Energy August 5, 2016 9.4% 425 363

Punjab National Bank Financial Services October 3, 2016 9.4% 143 119

Minda Corporation Auto Ancillaries October 10, 2016 9.6% 109 90

Pidilite Industries Chemicals November 17, 2016 10.1% 617 594

Somany Ceramics Ceramics December 20, 2016 10.1% 502 496

Cash 13.5%

Total Total 100%



December 23, 2016

Historical Performance as on 22nd December’16

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

Religare Alpha -2.7% -10.2% -0.9% -0.7% 15.5%

Nifty 0.6% -9.1% -1.4% 1.4% 1.2%

Outperformance -3.4% -1.1% 0.5% -2.1% 14.3%



December 23, 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.



December 23, 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]

Siji A Philip [email protected]

Vipin Kumar [email protected]

Team Members



December 23, 2016

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.

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Religare Morning · PDF fileof real estate major Unitech Ltd, in a case of alleged misappropriation of Rs 500 cr ... Religare Morning Digest December 23, 2016. Religare Morning Digest