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Religare Morning Digest

September 22, 2017

Nifty Outlook

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

NIFTY 10000 10200 9900

Markets settled marginally lower in a volatile trading session today, extending its consolidation phase. Sentiment was somber from the beginning, taking cues from the US Fed meet, wherein it signaled one more hike this year. Besides, weakness in rupee against the dollar further added to the pressure. Mostly sectoral indices traded in line with the benchmark and ended lower.

Markets are showing resilience amid mixed signals and it indicates that participants are expecting higher levels ahead. However, we feel trading in such a volatile environment is task in itself. The challenge is to stay with trend without comprising much on the profit potential. Thus we suggest keeping hedged positions and avoid over trading.

Sectors to watch

Sector Name Outlook

AUTO STABLE

ENERGY STABLE

REALTY WEAK

News

Religare Super Ideas**

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

Category Amt. MTD FYTD

FII -1185 -10627 -35995

DII 946 7421 48468

NO OF CON-

TRACTS

TURNOVER IN CR

IDXFUTS 220323 18713

IDXOPT 11149447 1035713

STKFUTS 797153 58284

Derivative Ideas **

Dr Reddy's Laboratories surged 7.5% on news that the company has received establishment inspection report (EIR) from the US health regulator for its formulation manufacturing unit at Srikakulam plant in Andhra Pradesh. The company also stated that it has received zero observations for its custom pharmaceutical services facility, technology development centre, at Miyapur in Hyderabad after audit of the facility by the USFDA.

Orchid Pharma ended higher by 20% after the company said that it has received the Establishment Inspection Report from USFDA for active pharmaceutical ingredients manufacturing facility in Tamil Nadu.

Claris Lifesciences announced that the company has completed the sale of its remaining 20% stake in Otsuka Pharmaceuticals (a JV with Otsuka Pharmaceutical Factory, Inc and Mitsui & Co) to Otsuka Pharmaceutical Factory, Inc (Japan) for a consideration of USD 20mn.

*FII & DII data as on 20th September 2017

Scrip Buy/Sell CMP Initiation

Range SL* Target

VGUARD BUY 199.65 194-196 188 210

UNIONBANK SELL FUTS

136.05 137-138 141 130

**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

HDFC

BUY

1800

CE

500 6.90-7.00 3 15.50



September 22, 2017

Religare Super Ideas

Investment Pick - Tata Communications

TCOM is targeting new growth avenues like cyber security, IOT and cross border security. It has reclassified its growth portfolio to include UCC and conferencing

solutions in the growth basket. It is focusing on the right capital allocation for future growth plans. TCOM has monetised two of its low ROCE businesses in FY17 (Neotel and Data Centre). It has sold off entire stake in Neotel (67%) and reduced its stake in Data Centre from 74% to 26%.

The initiatives taken by the management like monetizing poor performing ventures, deleveraging, prudent capital allocation and focus on high margin businesses

would lead to better operational margins in FY19-20E. We recommend a Buy on the stock with a target price of Rs. 822.

Scrip CMP Target Duration Recommendation Price

TATACOMM 703.55 822 9-12 Months 708

HDFC added around 1% in open interest as fresh

long positions with some delivery based buying in

previous session. Current chart pattern too indicate

fresh surge in price. We suggest buying HDFC Sep-

tember call options as per levels mentioned below.

Strategy: Buy HDFC SEP 1800CE BETWEEN 6.90-7,

SL-3, TGT-15.50

Derivative Ideas

V-Guard Industries Limited (VGUARD) Union Bank of India (UNIONBANK)

VGUARD has been consolidating while holding

firmly above its support zone of short term moving

averages on daily chart. Considering its chart

pattern, we expect a strong surge in near future.

Traders can accumulate fresh longs in the given

range.

Though UNIONABNK has witnessed a marginal

recovery from its support area but failed to cross the

resistance zone of multiple moving averages on daily

chart, resulting in formation of fresh shorting pivot.

We suggest using this bounce to go short as per the

levels.



September 22, 2017

Religare Investment Calls

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

Cigniti Technologies Ltd. 5-Oct-16 419 538 28.3% 243.7

Fiem Industries 26-Dec-16 1,089 1,315 20.8% 923.9

Greenply Industries 3-Feb-17 268 304 13.4% 271.3

Arman Financial Services 22-Feb-17 226 340 50.0% 228.0

Indo Count Industries Ltd. 17-May-17 198 240 21.2% 116.1

SML Isuzu 25-May-17 1,247 1,525 22.3% 926.2

APL Apollo Tubes 12-July-17 1,596 2,352 47.4% 1,789.7

Force Motors 27-July-17 4,104 4,897 19.3% 3,961.0

Zee Entertainment Enterprises 28-July-17 539 592 9.8% 535.6

CRISIL 01-Aug-17 1,858 2,419 30.2% 1,849.7

LIC Housing Finance 09-Aug-17 681 748 9.8% 660.8

Eicher Motors Ltd 09-Aug-17 31,630 40,467 27.9% 31,824.3

Wonderla Holidays 17-Aug-17 339 430 26.8% 357.1

The Byke Hospitality 17-Aug-17 195 242 24.1% 174.2

Century Plyboards 18-Aug-17 251 307 22.3% 247.4

NRB Bearings 18-Aug-17 118 139 17.8% 122.7

Srikalahasthi Pipes Ltd 18-Aug-17 362 416 14.8% 331.4

Avanti Feeds 21-Aug-17 1,921 2,240 16.6% 2,111.6

Jain Irrigation Systems Ltd. 23-Aug-17 93 125 34.4% 104.7

Mold-Tek Packaging Limited 31-Aug-17 301 340 13.0 % 282.2

Swaraj Engines Ltd 31-Aug-17 1,985 2,201 10.9% 2,030.4

Mayur Uniquoters Ltd 01-Sept-17 360 460 27.7% 375.8

Castrol India 01-Sept-17 389 426 9.6% 380.3

Symphony Ltd 07-Sept-17 1,297 1,632 25.8% 1,415.0

Garware Wall Ropes Ltd 12-Sept-17 920 1,083 17.7% 872.1

Talwalkars Better Value Fitness 18-Sept-17 288 346 20.0% 283.0

Tata Communications 18-Sept-17 708 822 16.1% 703.6



September 22, 2017

Corporate Action Calendar — September 2017 (Cash Dividend)

Sun Mon Tue Wed Thu Fri Sat

17 18

SE Investments Ltd

Gallantt Ispat Ltd

Phoenix Mills Ltd/The

PIX Transmissions Ltd

Arrow Textiles Ltd

Bliss Gvs Pharma Ltd

Ruby Mills Ltd

Shakti Pumps India Ltd

Aarti Industries

Technofab Engineering

Polyspin Exports Ltd

HBL Power Systems Ltd

Fluidomat Ltd

Sun Pharmaceutical

Bhandari Hosiery Exports

Indraprastha Gas Ltd

Sreeleathers Ltd

Inter Globe Finance Ltd

Signet Industries Ltd/India

Basant Agro Tech India Ltd

Windsor Machines Ltd

Vama Industries Ltd

Grauer & Weil India Ltd

Setco Automotive Ltd

LEEL Electricals Ltd

Alankit Ltd

High Ground Enterprise

Alicon Castalloy Ltd

Jay Ushin Ltd

19

Vimta Labs Ltd

Zee Learn Ltd

Shemaroo Entertainment

Srikalahasthi Pipes Ltd

Pondy Oxides & Chemicals

TD Power Systems Ltd

Precision Camshafts Ltd

HPL Electric & Power Ltd

Precision Camshafts Ltd

Bambino Agro Industries

Shivalik Bimetal Controls

Sunteck Realty Ltd

Patel Integrated Logistics

63 Moons Technologies Ltd

DLF Ltd

Oriental Veneer Products

Multiplus Holdings Ltd

Hindustan Tin Works Ltd

Marksans Pharma Ltd

Premier Polyfilm Ltd

Jindal Worldwide Ltd

BDH Industries Ltd

Zen Technologies Ltd

Prestige Estates Projects

Tokyo Plast International

Man Industries India Ltd

Seya Industries Ltd

Sahyog Multibase Ltd

National Fertilizers Ltd

Kanchi Karpooram Ltd

20

BASF India Ltd

Poly Medicure Ltd

Granules India Ltd

Glenmark Pharmaceuticals

Hinduja Ventures Ltd

Gujarat State Petronet Ltd

Arman Financial Services

Pearl Global Industries Ltd

Poddar Pigments Ltd

Shri Keshav Cements & Infra

Omaxe Ltd

Talbros Engineering Ltd

Steel Strips Wheels Ltd

J Kumar Infraprojects Ltd

J Kumar Infraprojects Ltd

Alphageo India Ltd

Capital Trade Links Ltd

Coastal Corp Ltd

Jagran Prakashan Ltd

Kolte-Patil Developers

IndiaNivesh Ltd

Satra Properties India Ltd

Nectar Lifesciences Ltd

Inani Marbles & Industries Ltd

Narendra Investments Delhi Ltd

Zenlabs Ethica Ltd

Kridhan Infra Ltd

Savita Oil Technologies Ltd

21

Reliance Capital Ltd

Atul Auto Ltd

APL Apollo Tubes Ltd

Ajmera Realty & Infra India Ltd

Gujarat Natural Resources Ltd

TPL Plastech Ltd

Oil & Natural Gas Corp Ltd

Kwality Ltd

Zenith Fibres Ltd

CHD Chemicals Ltd

Goodluck India Ltd

Pee Cee Cosma Sope Ltd

Hi-Tech Gears Ltd/The

Nandan Denim Ltd

Talwalkars Better Value Fitness Ltd

Monte Carlo Fashions Ltd

Power Mech Projects Ltd

Responsive Industries Ltd

Swasti Vinayaka Synthetics Ltd

AurionPro Solutions Ltd

AurionPro Solutions Ltd

Ashoka Buildcon Ltd

DIL Ltd

Catvision Ltd

Tirupati Sarjan Ltd

Sacheta Metals Ltd

Abirami Financial Services

Sagar Productions Ltd

Sri KPR Industries Ltd

KMS Medisurgi Ltd

22

West Leisure Resorts Ltd

Lokesh Machines Ltd

Agarwal Industrial Corp Ltd

Rolta India Ltd

23



September 22, 2017

Corporate Action Calendar — September 2017 (Stock Split)


17 18

19 20 21

Yes Bank Ltd

22

Safari Industries India Ltd

23

Corporate Action Calendar — September 2017 (Stock Dividend)


17 18

Tata Elxsi Ltd

19 20 21

22 23

Corporate Action Calendar — September 2017 (Acquisition)

Date Target Company Acquirer Company

9/18/2017 Worldwide Leather Exports Ltd Jainalco Industries Pvt Ltd

9/18/2017 Golkonda Aluminium Extrusions Ltd Private Investor

Corporate Action Calendar — September 2017 (Stock Buyback)


17 18

19

Sobha Ltd

20 21

22 23



September 22, 2017

Current Portfolio and Performance Summary as on 21st September’17

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

Amara Raja Batteries Auto March 22, 2017 9.6% 868 774

RBL Bank Financial Services July 11, 2017 9.5% 532 533

Muthoot Finance Financial Services July 26, 2017 10.3% 482 503

Talwalkars Better value

Fitness Health Fitness July 27, 2017 9.4% 302 283

Va Tech Wabag Infrastructure August 16, 2017 9.6% 636 633

Nilkamal Plastic Products August 17, 2017 9.0% 1,682 1,571

PPAP Automotive Auto Ancillaries September 14, 2017 9.5% 383 371

Can Fin Homes Financial Services September 19, 2017 11.3% 2,859 2,797

CARE Financial Services September 20, 2017 10.5% 1,493 1,472

Cash 11.3%

Total 100%



September 22, 2017

Historical Performance as on 21st September’17

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

Religare Alpha 1.9% 11.9% 8.0% 38.9%

Nifty 5.1% 11.1% 15.3% 28.4%

Outperformance -3.2% 0.8% -7.3% 10.5%



September 22, 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.



September 22, 2017

Hitesh Agrawal [email protected]

Ajay Pasari, CFA [email protected]

Ajit Mishra [email protected]

Archana Gude [email protected]

Manoj M Vayalar [email protected]

Mehernosh Khurshed Panthaki [email protected]

Siji A Philip [email protected]

Suhanee Shome [email protected]

Team Members



September 22, 2017

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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 : ……………………………………………………………………………………………………………………

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[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]

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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

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

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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

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