Religare Morning Digest · Religare Morning Digest ... EICHER MOTORS LTD. EXCEL CROP CARE LTD. ... Raunaq EPC International Ltd Berger Paints India Ltd McLeod Russel India Ltd

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Religare Morning Digest

July 27, 2016

Nifty Outlook

Nifty witnessed profit taking on Tuesday and lost nearly half a percent, tracking mixed cues.

Initially, cues were negative from Asian counterparts but rotational buying in select index

majors capped downside for most part of the session. Meanwhile, participants were busy in

rollover and unwinding of their positions, with just two days left for the July month F&O

expiry. But, sudden fall in last hour slightly unsettled the bull and pushed Nifty below 8600.

It’s clearly a tussle between the bulls and bears at current level ahead of curial events and

we reiterate our positive yet cautious bias. Even in adverse case, we’re not seeing Nifty

breaching 8400; however, possibility of time-wise correction is high. So, traders should limit

their trades till further clarity emerges.

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

NIFTY 8475 8700 8400

Sectors to watch

Sector Name Outlook

CEMENT STABLE

FMCG STABLE

PHARMA STABLE

News Religare Super Ideas**

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

Category Amt. MTD YTD

FII 891 7643 23502

DII -68 -4558 -1919

NO OF CON-

TRACTS

TURNOVER IN CR

IDXFUTS 379684 25554

IDXOPT 4460931 300992

STKFUTS 1314008 88962

Dr. Reddy’s Labs reported a 75% drop in its net profit. Net profit fell from Rs 626 Cr to Rs

153 Cr for the current quarter. Revenue income declined by 14.2% to Rs 3,222 Cr on account

of loss of business in Venezuela, and a drop in the volume sales in USA. Shares of the

company fell by 4.6%.

TVS Motors reported a 21% rise (YoY) in PAT from Rs 100.08 Cr to Rs 121.25 Cr for Q1FY

2017. Revenue sales grew by 12% whereas sales volume grew by 11%. Exports grew by 15.3%

to 7 lakh units from 6.1 lakh units.

Maruti Suzuki reported a 23% rise in net profit for the first quarter to Rs 1.486 Cr from Rs

1,208 Cr. Net sales grew by 12.1% in monetary terms and 2.1% growth was seen in volume

terms. Lower material costs and improved operational income contributed to the profit incre-

ment.

Derivative Ideas **

Instrument B/S Lot INITIATION

RANGE SL TARGET

ADANIENT

AUGUST FUTS BUY 8000 82.50-83 80.50 87

*FII & DII data as on 25th July 2016

Scrip Buy/Sell CMP Initiation

Range SL* Target

ARVIND BUY 304.95 300-305 295 325

BEL BUY 1226.25 1190-1210 1170 1280

**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.



July 27, 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 447.25 560 9-12 Months 419

ADANIENT added 15.30% of open interest as fresh

long positions along with good delivery based

buying. It has rolled 27% into August series. On

charts, it has created a fresh buying pivot on daily as

well as on intraday charts. We expect it to rally till

87 in short term.

Strategy: BUY ADANIENT AUGUST FUTS BETWEEN

82.50-83, SL 80.50, TARGET 87.

Derivative Ideas

Arvind Limited (ARVIND) Bharat Electronics Limited (BEL)

ARVIND is witnessing profit-taking post recent up

move where it rallied from 235 till 344 levels. It’s

200 EMA is placed nearby at 298 levels, this will

limit down side. Hence, dip till that level can be

utilized for fresh entry.

BEL is trading close to its important averages

(50/100/200 EMA’s) placed at 1231/1211/1186

levels respectively. These averages will act as

immediate support if the trend starts to reverse.

Hence, one can initiate fresh long positions in the

mentioned range as profit to loss ratio is quite

favorable at current juncture.



July 27, 2016

Result Calendar— July 2016

Sun Mon Tue Wed Thu Fri Sat

24 25

AMRIT CORP.LTD

AUTOMOTIVE STAMPINGS & ASSEMBLIES LTD.

BAJAJ CORP LTD.

CANARA BANK

EVEREADY INDUSTRIES INDIA LTD.

GEM SPINNERS INDIA LTD.

GHCL LTD.

GREENPLY INDUSTRIES LTD.

HIMALYA INTERNATIONAL

LTD.

HINDUSTAN OIL

EXPLORATION CO.LTD.

Indiabulls Housing Finance Ltd

JK PAPER LTD.

KG DENIM LTD.

KALYANI INVESTMENT

COMPANY LTD.

K.P.R.MILL LTD.

KALYANI STEELS LTD.

MAHARASHTRA SCOOTERS

LTD.

STATE BANK OF MYSORE

PIONEER INVESTCORP LTD.

STERLITE TECHNOLOGIES LTD.

TRITON CORP.LTD.

26

ACC LTD.

AJANTA PHARMA LTD.

AMBUJA CEMENTS LTD.

BAJAJ FINSERV LTD.

Bajaj Finance Limited

Capri Global Capital Limited

CHARMS INDUSTRIES LTD.

COROMANDEL

INTERNATIONAL LTD.

COSMO FILMS LTD.

DR.REDDY'S

LABORATORIES LTD.

EXCEL INDUSTRIES LTD.

FIRSTSOURCE SOLUTIONS

LTD.

IDFC LIMITED

IDFC Bank Ltd

BHARTI INFRATEL LTD.

KARUR VYSYA BANK LTD.

MARUTI SUZUKI INDIA LTD.

NIIT LTD.

PI Industries Ltd

PRIME SECURITIES LTD.

STATE BANK OF

TRAVANCORE

TATA ELXSI LTD.

TVS MOTOR COMPANY LTD.

27

ASIAN PAINTS LTD.

BAJAJ AUTO LTD.

BHARTI AIRTEL LTD.

CASTROL INDIA LTD.

DABUR INDIA LTD.

EVEREST INDUSTRIES LTD.

GIC HOUSING FINANCE

LTD.

HOUSING DEVELOPMENT

FINANCE CORP.LTD.

JSW STEEL LTD.

NIDHI GRANITES LTD.

NOCIL LTD.

OMAX AUTOS LTD.

SHIPPING CORPORATION

OF INDIA LTD.

SHRIRAM TRANSPORT

FINANCE CO.LTD.

TORRENT PHARMACEUTICALS LTD.

YES BANK LTD.

28

BLUE DART EXPRESS

LTD.

DISH TV INDIA LTD.

EICHER MOTORS LTD.

EXCEL CROP CARE LTD.

HIL LTD.

MAHINDRA LIFESPACE

DEVELOPERS LTD.

MUTHOOT FINANCE LTD.

REDINGTON (INDIA) LTD.

SHRIRAM CITY UNION

FINANCE LTD.

SUPREME INDUSTRIES

LTD.

SYNDICATE BANK

29

ALEMBIC PHARMACEUTICALS

LTD.

ADITYA BIRLA MONEY LTD

Cholamandalam Investment

and Finance Company Ltd

Crompton Greaves Consumer

Electricals Ltd

DIC INDIA LTD.

EPC INDUSTRIE LTD.

GABRIEL INDIA LTD.

GODREJ CONSUMER PROD-

UCTS LTD.

Heritage Foods Limited

ICICI BANK LTD.

KEC INTERNATIONAL LTD.

KARNATAKA BANK LTD.

LARSEN & TOUBRO LTD.

NESTLE INDIA LTD.

NIRLON LTD.

PIDILITE INDUSTRIES LTD.

PVR LTD.

RELIGARE ENTERPRISES LTD.

UPL Limited

Vedanta Limited

VLS FINANCE LTD.

30

FORCE MOTORS LTD.

Indo Cotspin Ltd

JINDAL CAPITAL LTD.

J.R.FOODS LTD.

JSW Holdings Limited

LLOYDS METALS AND EN-ERGY LTD.

RELAXO FOOTWEARS

LTD.

VENLON ENTERPRISES LTD.

YASH PAPERS LTD.



July 27, 2016

Corporate Action Calendar— July 2016 (Cash Dividend)


24 25

Vinati Organics Ltd

Bharat Forge Ltd

Lupin Ltd

WABCO India Ltd

ESAB India Ltd

EIH Associated Hotels

Nava Bharat Ventures Ltd

Kesar Terminals & Infrastruct

Tata Consultancy Services Ltd

26

Gati Ltd

Emami Ltd

Nitta Gelatin India Ltd

PTL Enterprises Ltd

GlaxoSmithKline Consumer Heal

Hawkins Cookers Ltd

Entertainment Network India L

Bright Brothers Ltd

JK Cement Ltd

Raunaq EPC International Ltd

Berger Paints India Ltd

McLeod Russel India Ltd

Modex International Securitie

27

Jayshree Tea & Industries Ltd

Indo Amines Ltd

Godrej Properties Ltd

Srei Infrastructure Finance L

Magma Fincorp Ltd

Poddar Housing and Develop-

men

Igarashi Motors India Ltd

Dhunseri Petrochem Ltd

Lakshmi Machine Works Ltd

National Peroxide Ltd

Machino Plastics Ltd

Bombay Dyeing & Manufactur-

ing

28

Deepak Nitrite Ltd

SML ISUZU Ltd

Peninsula Land Ltd

Arvind Ltd

Sona Koyo Steering Systems Lt

TAJ GVK Hotels & Resorts Ltd

Crest Ventures Ltd

Gravita India Ltd

Apcotex Industries Ltd

Nicco Parks & Resorts Ltd

Triton Valves Ltd

Finolex Industries Ltd

Finolex Industries Ltd

Camlin Fine Sciences Ltd

Nelcast Ltd

MEP Infrastructure Developers

Tech Mahindra Ltd

Tech Mahindra Ltd

Transpek Industry Ltd

Zee Media Corporation Ltd

Wheels India Ltd

Bombay Cycle & Motor Agency L

Cummins India Ltd

Thermax Ltd

Tata Steel Ltd

ISGEC Heavy Engineering Ltd

29

Federal Bank Ltd

IL&FS Investment Managers Ltd

Simplex Realty Ltd

DCM Shriram Ltd

IL&FS Transportation Networks

Zuari Global Ltd

Skipper Ltd

Britannia Industries Ltd

Control Print Ltd

Lakshmi Electrical Control Sy

TCPL Packaging Ltd

Zuari Agro Chemicals Ltd

30



July 27, 2016

Corporate Action Calendar— July 2016 (Stock Dividend)


24 25 26 27 28

Oceanaa Biotek Industries Ltd

Frontier Capital Ltd

29 30

Corporate Action Calendar— July 2016 (Stock Split)


24 25 26

Lloyds Metals & Energy Ltd

27 28 29 30

Corporate Action Calendar— July 2016 (Acquisition)

Date Target Company Acquirer Company

7/30/2016 ANI Technologies Pvt Ltd Multiple acquirers

Economic Calendar — July 2016


24 25 26

27 28 29

Fiscal Deficit INR Crore

30



July 27, 2016

Market Snapshot

Sectoral Indices Performance

Index Closing % Change % MTD % YTD

NIFTY Auto 9,255 -1.32% 4.4% 12.1%

NIFTY Bank 18,861 -0.68% 5.2% 11.5%

NIFTY Energy 9,310 -0.17% 7.0% 8.5%

Nifty Financial Services 7,784 -0.58% 6.3% 10.3%

NIFTY FMCG 22,060 -0.36% 2.1% 9.2%

NIFTY IT 10,878 0.06% -2.2% -3.0%

NIFTY Media 2,717 -0.30% 3.2% 3.2%

NIFTY Metal 2,439 -0.10% 11.8% 33.5%

NIFTY Pharma 11,691 -1.50% 4.9% -2.3%

NIFTY PSU Bank 2,865 -1.14% 5.1% 0.0%

NIFTY Realty 206 -1.29% 3.0% 19.5%

Top Gainers - Nifty

Stock CMP (INR) % Chg % MTD % YTD

AXISBANK 553.80 2.92% 3.8% 23.3%

YESBANK 1,200.15 1.47% 8.4% 65.4%

POWERGRID 171.40 1.45% 5.1% 21.4%

TATASTEEL 367.80 1.14% 14.2% 41.6%

INFY 1,088.70 0.73% -7.0% -1.5%

Top Losers - Nifty

Stock CMP (INR) % Chg % MTD % YTD

DRREDDY 3,319.65 -4.67% -1.8% 6.8%

HINDALCO 131.65 -2.63% 7.2% 55.3%

ICICIBANK 261.65 -2.61% 8.8% 0.1%

HEROMOTOCO 3,210.10 -2.13% 1.0% 19.2%

AUROPHARMA 784.10 -1.92% 5.6% -10.5%

Bulk Deals - NSE

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

Satin Credit Net Ltd MORGAN STANLEY ASIA (SINGAPORE) PTE BUY 323000 579.48 18.72

Unitech Ltd ADROIT SHARE & STOCK BROKER PVT. BUY 15583836 7.89 12.30

Unitech Ltd ADROIT SHARE & STOCK BROKER PVT. SELL 15484836 7.84 12.14

Unitech Ltd CRESCO FUTURES LTD BUY 13607294 7.9 10.75

Sudarshan Chemical Inds L MORGAN STANLEY ASIA (SINGAPORE) PTE BUY 355217 288.53 10.25

Unitech Ltd CRESCO FUTURES LTD SELL 12914294 7.89 10.19

AmtekAuto-Roll Sett SHAASTRA SECURITIES TRADING PRIVATE SELL 1478265 47.33 7.00

AmtekAuto-Roll Sett SHAASTRA SECURITIES TRADING PRIVATE BUY 1478265 47.3 6.99

Mandhana Indus. Ltd CHETAN RASIKLAL SHAH BUY 601014 47.53 2.86

Vikas EcoTech Limited ASHROJ CREDIT INDIA PRIVATE LIMITED BUY 1690099 16.36 2.77

Delivery Spurt stocks

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

Tree House Edu. 662,566 1725% 2.01%

Chola- 562,940 1616% 1.50%

Religare Enterp. 137,945 1454% -0.38%

Sunteck Realty 305,145 1368% 0.02%

Supreme Pet- 352,746 1219% -8.35%

Nava Bharat 206,548 1080% -2.40%

Bajaj Fin. 207,528 816% 9.63%

JM Financial 3,573,389 796% 4.80%

Amtek Auto 5,254,933 753% 7.50%

FDC 534,020 728% 0.79%

*Bulk deals data as on July 25, 2016



July 27, 2016

Current Portfolio and Performance Summary as on 26th July’16

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

Dewan Housing Finance

Corporation Financial Services Feb 10, 2016 15.0% 193* 222

Bajaj Corp Consumer Goods May 13, 2016 9.4% 393 401

Reliance Industries Energy May 27, 2016 9.7% 970 1,024

City Union Bank Financial Services May 31, 2016 10.9% 107 125

Vinati Organics Chemicals June 28, 2016 9.5% 544 553

Magma Fincorp Financial Services June 30, 2016 9.0% 109 104

Sun Pharmaceutical

Industries Pharma July 15, 2016 10.0% 771 798

Cash 26.6%

Total Total 100%

*Weighted average price

*7.5% DHFL was bought at 237

*7.5% DHFL was bought at 163



July 27, 2016

Historical Performance as on 26th July’16

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

Religare Alpha 8.67% 12.10% 17.41% 6.79% 26.64%

Nifty 6.21% 9.36% 15.50% 2.75% 8.96%

Outperformance 2.46% 2.73% 1.90% 4.04% 17.68%



July 27, 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.



July 27, 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



July 27, 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]

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

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S. No. Statement Answer

Yes No

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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

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No

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Religare Morning Digest · Religare Morning Digest ... EICHER MOTORS LTD. EXCEL CROP CARE LTD. ... Raunaq EPC International Ltd Berger Paints India Ltd McLeod Russel India Ltd