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Religare Morning Digest
August 3, 2016
Nifty Outlook
Markets closed flat for second day in a row as participants preferred booking profit ahead
of scheduled voting on GST bill. Bias was positive in the beginning, taking cues from strong
core sector data and latest report on progression of monsoon on expected lines. However,
decline in index majors along with midcap and smallcap counters in the later half erased all
the intraday gains in index and turned the market breadth too.
With all eyes on parliament, we expect a volatile session on Wednesday. Also, we’re seeing
sign of exhaustion in Nifty at current level, which is not a good signal ahead of event. So, we
suggest traders to lighten up their positions especially the leveraged trades and see how
market reacts to the outcome.
VWAP (Expiry till date) Max OI (Call) Max OI (Put)
NIFTY 8645 9000 8500
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 726 726 27456
DII -414 -414 -3829
NO OF CON-
TRACTS
TURNOVER IN CR
IDXFUTS 183818 12555
IDXOPT 2561669 179178
STKFUTS 587064 41073
Century Plyboards reported a 9.8% rise in total revenue to Rs 405.7 Cr in Q1FY17 from Rs
369.5 Cr in Q1FY16. Net profit increased by 7.2% to Rs 42.5 Cr from Rs 39.6 Cr. Revenue from
Container and Freight Station Segment showed a stellar improvement of 34.5 % to Rs 23.4 Cr
as compared to Rs 17.4 Cr in the same period last fiscal.
Bajaj Auto reported a 1% rise (YoY) in motorcycle sales for the month of July to 2,85,527
from 2,82,433 units previously. Commercial Vehicle sales fell by 7% to 44,306 from 47,798
units. Total exports showed a decline of almost of 20% to 1,31,811 units.
Sun Pharmaceuticals received the US FDA’s nod for an Abbreviated New Drug Application
(ANDA) to launch their diabetes drug - Glumetza, Metformin Hydrochloride.
Derivative Ideas **
Instrument B/S Lot INITIATION
RANGE SL TARGET
RCOM 50
AUGUST PE BUY 10000 1.80-2.00 1.40 3.25
*FII & DII data as on 1st August 2016
Scrip Buy/Sell CMP Initiation
Range SL* Target
ITC BUY 260.80 258-262 250 285
MCDOWELL-N SELL
FUT 2402.00 2420-2440 2520 2200
**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.
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Religare Morning Digest
August 3, 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 454.30 560 9-12 Months 419
RCOM added 2% of open interest as short positions
along with some delivery based selling. On charts, it
has created a fresh selling pivot on daily charts and
also trading below important moving averages. We
expect it to test 48 levels in short term.
Strategy : BUY RCOM AUGUST 50 PE 1.80-2, SL
1.40, TARGET 3.25.
Derivative Ideas
ITC Limited (ITC) United Spirits Limited (MCDOWELL-N)
ITC has performed well in past couple of months
and is in long-term up trend. Yesterday, i.e. 2nd
August it rallied over 4% on back of strong volume
and surpassed past three week trading range,
indicating bullish bias to continue in near-term as
well.
MCDOWELL-N is in down trend, trading in range
2250-2720 from past six months. Recently, it once
again resumed its down ward journey after it failed
to cross its 100 EMA on daily chart placed at 2535
levels. With no buying interest seen at
current levels, we expect further decline in coming
sessions.
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Religare Morning Digest
August 3, 2016
Result Calendar— August 2016
Sun Mon Tue Wed Thu Fri Sat
31 01
BLUE STAR LTD.
BOMBAY WIRE ROPES LTD.
CELEBRITY FASHIONS LTD.
CENTURY ENKA LTD.
DFM FOODS LTD.
DR.AGARWAL'S EYE HOSPITAL
LTD.
NITCO LTD.
PIRAMAL ENTERPRISES LTD.
ROSE INVESTMENTS LTD.
SACHETA METALS LTD.
SANGAM ADVISORS LTD.
Shyam Century Ferrous Ltd
Star Ferro and Cement Ltd
SHAH FOODS LTD.
Shreenath Industrial Invest-
ment Company Ltd
SIMPLEX CASTINGS LTD.
SKM EGG PRODUCTS EXPORT
(INDIA) LTD.
STEL Holdings Limited
SUNDARAM BRAKE LININGS
LTD.
SUNIL AGRO FOODS LTD
02
CENTURY PLYBOARDS (I)
LTD.
GUJARAT SIDHEE CEMENT
LTD.
INDIAN BANK
JHS SVENDGAARD LABOR-
ATORIES LTD.
JINDAL HOTELS LTD.
JM FINANCIAL LTD.
Kashiram Jain and
Company Ltd
SRI LAKSHMI SARASWATHI
TEXTILES (ARNI) LTD.
TATA INVESTMENT COR-
PORATION LTD.
TCI DEVELOPERS LTD.
TCI INDUSTRIES LTD.
TORRENT POWER LTD.
UFO Moviez India Ltd
UGAR SUGAR WORKS LTD.
Veto Switchgears and Ca-
bles Ltd
VOLTAS LTD.
WIM PLAST LTD
Wonderla Holidays Ltd
03
ACROW INDIA LTD.
BAJAJ GLOBAL LTD.
BATA INDIA LTD.
BERGER PAINTS INDIA
LTD.
B.L.KASHYAP AND SONS
LTD.
CADILA HEALTHCARE LTD.
DISHMAN PHARMACEUTI-
CALS & CHEMICALS LTD.
EMAMI LTD.
ENTERTAINMENT NET-
WORK (INDIA) LTD.
HCL TECHNOLOGIES LTD.
INCON ENGINEERS LTD.
INDO TECH TRANSFORM-
ERS LTD.
KAJARIA CERAMICS LTD.
KALYANI FORGE LTD.
MARUTI SECURITIES LTD.
MEHTA HOUSING FI-
NANCE LTD.
Orient Cement Ltd
The Ramco Cements Lim-
ited
04
ARVIND LTD.
BHARAT GEARS LTD.
CUMMINS INDIA LTD.
DATAMATICS GLOBAL
SERVICES LTD.
FORTIS HEALTHCARE
LTD.
GATI LTD.
HINDUSTAN MEDIA VEN-
TURES LTD.
Kaya Ltd
KIRLOSKAR OIL ENGINES
LTD.
SCOOTERS INDIA LTD.
Sharda Cropchem Ltd
SHARDUL SECURITIES
LTD.
SIEMENS LTD.
Snowman Logistics Ltd
TANLA SOLUTIONS LTD.
TATA POWER CO.LTD.
THIRDWAVE FINANCIAL
INTERMEDIARIES LTD.
THOMAS COOK (INDIA)
LTD.
05
AEGIS LOGISTICS LTD.
BHARAT ELECTRONICS LTD.
BHARAT FORGE LTD.
BOMBAY POTTERIES & TILES
LTD.
CREDIT ANALYSIS AND RE-
SEARCH LTD.
CENTRUM CAPITAL LTD.
CONTROL PRINT LTD.
HINDUSTAN MOTORS LTD.
HINDUSTAN ORGANIC CHEMI-
CALS LTD.
HT MEDIA LTD.
MARSONS LIMITED
ONIDA SAKA LTD.
PARAMOUNT COMMUNICA-
TIONS LTD.
PFIZER LTD.
Quick Heal Technologies Ltd
SML ISUZU LIMITED
SRS Finance Ltd
TUNI TEXTILE MILLS LTD.
UNITED LEASING & INDUS-
TRIES LTD.
06
ANDHRA BANK
INDBANK MERCHANT
BANKING SERVICES LTD.
IND BANK HOUSING LTD.
Jagran Production Limited
J.K.CEMENT LTD.
REPCO HOME FINANCE
LTD.
REPRO INDIA LTD.
ROSELABS FINANCE LTD.
SAMBANDAM SPINNING
MILLS LTD.
SANDUR MANGANESE &
IRON ORES LTD.
SP CAPITAL FINANCING
LTD.
SREI INFRASTRUCTURE
FINANCE LTD.
SRI NACHAMMAI COTTON
MILLS LTD.
SUMEDHA FISCAL SER-
VICES LTD.
SURAJ PRODUCTS LTD.
TATA COFFEE LTD.
TRIOCHEM PRODUCTS
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Religare Morning Digest
August 3, 2016
Corporate Action Calendar— August 2016 (Dividend)
Sun Mon Tue Wed Thu Fri Sat
31 01
ALEMBIC LTD.
APOLLO TYRES LTD.
EMAMI PAPER MILLS LTD.
LA OPALA RG LTD.
HINDOOSTAN MILLS LTD.
Symphony Limited
WIRES & FABRIKS (SA) LTD.
02
ACC LTD.
ASIAN HOTELS (EAST) LTD.
AMBUJA CEMENTS LTD.
AVT NATURAL PRODUCTS LTD.
DCM SHRIRAM INDUSTRIES
LTD.
DHUNSERI INVESTMENTS
LTD.
DISA INDIA LTD.
GARWARE-WALL ROPES
LTD.
HIKAL LTD.
HONEYWELL AUTOMA-
TION INDIA LTD.
KHAITAN CHEMICALS &
FERTILIZERS LTD.
MAKERS LABORATORIES
LTD.
NITIN ALLOYS GLOBAL
LTD.
PAUSHAK LTD.
PRIME URBAN
DEVELOPMENT INDIA LTD.
SHREYANS INDUSTRIES
LTD.
TATA CHEMICALS LTD.
TIMKEN INDIA LTD.
Ujjivan Financial Services
Ltd
03
BASF INDIA LTD.
BENARES HOTELS LTD.
CLARIANT CHEMICALS
(INDIA) LTD.
Dhunseri Tea & Industries
Ltd
GLENMARK
PHARMACEUTICALS LTD.
GUJARAT PIPAVAV PORT LTD.
GRANULES INDIA LTD
HONDA SIEL POWER
PRODUCTS LTD.
INDO BORAX &
CHEMICALS LTD.
KAIRA CAN CO.LTD.
MAFATLAL INDUSTRIES LTD.-$
MINDA INDUSTRIES LTD.
MINDTECK (INDIA) LTD.
MRF LTD.
National Fittings Limited
PAGE INDUSTRIES LTD.
SAFARI INDUSTRIES
(INDIA) LTD.
SAKSOFT LTD.
ZODIAC CLOTHING
CO.LTD.
04
ABM KNOWLEDGEWARE
LTD.
ASAHI INDIA GLASS LTD.
AVANTI FEEDS LTD
05 06
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Religare Morning Digest
August 3, 2016
Market Snapshot
Sectoral Indices Performance
Index Closing % Change % MTD % YTD
NIFTY Auto 9,470 -0.63% 0.0% 14.7%
NIFTY Bank 18,708 -0.17% -1.3% 10.6%
NIFTY Energy 9,298 0.02% -0.1% 8.3%
Nifty Financial Services 7,718 -0.92% -1.5% 9.3%
NIFTY FMCG 22,639 2.27% 1.8% 12.1%
NIFTY IT 11,179 0.36% 2.4% -0.3%
NIFTY Media 2,826 -0.82% 0.4% 7.3%
NIFTY Metal 2,411 -1.94% -0.5% 32.0%
NIFTY Pharma 11,568 -1.01% -1.1% -3.3%
NIFTY PSU Bank 2,845 0.72% -0.6% -0.7%
NIFTY Realty 205 -1.20% -1.2% 18.8%
Top Gainers - Nifty
Stock CMP (INR) % Chg % MTD % YTD
ITC 260.80 4.07% 3.3% -20.4%
HCLTECH 800.75 2.60% 6.3% -6.4%
BANKBARODA 151.15 2.47% -0.4% -3.5%
MARUTI 4,986.05 2.46% 4.8% 7.9%
TECHM 499.20 1.85% 2.3% -4.3%
Top Losers - Nifty
Stock CMP (INR) % Chg % MTD % YTD
AUROPHARMA 763.75 -3.05% -3.5% -12.8%
TATAMOTORS 493.30 -2.94% -2.0% 26.1%
AMBUJACEM 263.85 -2.64% -2.7% 29.9%
BPCL 579.35 -2.56% -2.2% -35.1%
TATAMTRDVR 322.80 -2.34% -0.2% 11.6%
Bulk Deals - NSE
Security Name Client Name Buy/Sell Quantity Price Value (in Cr.)
Atul Ltd. ARVIND LIMITED SELL 450000 1925 86.63
Atul Ltd. HDFC MUTUAL FUND BUY 400000 1925 77.00
Atul Ltd. AEON INVESTMENT PVT LTD BUY 250000 1894.8 47.37
Atul Ltd. ARVIND BRANDS LTD SELL 250000 1894.8 47.37
Advanced Enzyme Tech RELIANCE MUTUAL FUND-VISION FUND BUY 200000 1229.4 24.59
Jaiprakash Associates Lim ADROIT SHARE & STOCK BROKER PVT. SELL 18322468 12.15 22.26
Jaiprakash Associates Lim ADROIT SHARE & STOCK BROKER PVT. BUY 18187226 12.15 22.10
Advanced Enzyme Tech N.K. SECURITIES SELL 176705 1219.9 21.56
Advanced Enzyme Tech N.K. SECURITIES BUY 176705 1219.4 21.55
Advanced Enzyme Tech WAY2WEALTH DISTRIBUTORS PRIVATE SELL 165385 1216.2 20.12
Delivery Spurt stocks
Stock Name Day's del. Vol. Del. Vol. Price
Mandhana Indus 897,209 4403% 4.93%
Phoenix Mills 640,739 865% 8.02%
Kansai Nerolac 480,061 844% 6.67%
MBL Infrast 219,425 790% -3.32%
I O C L 3,959,554 780% 2.45%
Nava Bharat 149,748 756% 1.42%
Allcargo Logist. 485,743 748% -3.46%
Indian Bank 1,233,773 733% 19.99%
Muthoot Finance 1,527,609 617% 1.94%
Maruti Suzuki 810,732 582% 2.46%
*Bulk deals data as on August 1, 2016
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Religare Morning Digest
August 3, 2016
Current Portfolio and Performance Summary as on 2nd August’16
Stock Sector Entry Date Weight Reco price (`) CMP (`)
Dewan Housing Finance
Corporation Financial Services Feb 10, 2016 15.1% 193* 224
Bajaj Corp Consumer Goods May 13, 2016 8.9% 393 384
Reliance Industries Energy May 27, 2016 9.5% 970 1,013
Vinati Organics Chemicals June 28, 2016 9.2% 544 537
Magma Fincorp Financial Services June 30, 2016 9.3% 109 108
Sun Pharmaceutical
Industries Pharma July 15, 2016 10.3% 771 829
Apollo Hospitals
Enterprises Healthcare Services July 29, 2016 10.1% 1,362 1,362
Cash 27.6%
Total Total 100%
*Weighted average price
*7.5% DHFL was bought at 237
*7.5% DHFL was bought at 163
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Religare Morning Digest
August 3, 2016
Historical Performance as on 2nd August’16
Performance Matrix 1-Month 3-Month 6-Month 1-Year Since Inception
Religare Alpha 4.27% 12.15% 19.46% 5.43% 27.27%
Nifty 3.54% 10.47% 17.13% 0.93% 9.37%
Outperformance 0.73% 1.69% 2.33% 4.50% 17.90%
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Religare Morning Digest
August 3, 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.
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Religare Morning Digest
August 3, 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
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Religare Morning Digest
August 3, 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.
