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Religare Morning Digest

September 8, 2016

Nifty Outlook

After strong surge in the previous session, markets remained in consolidation mood on Wednesday and ended slightly lower. However, jubilation continued on stock specific front, which kept the traders busy. Among sectoral indices, PSU bank clearly outshined others, thanks to latest statement from the Finance Minister emphasising on revival of banking sector, while rest of pivots traded mixed with the bias on positive side.

We’re bullish on markets and now eyeing new record high in Nifty in coming days so use pause or consolidation in index to add fresh longs. However, traders should remain cautious on sector and stock selection. As anticipated, we’ve started seeing recovery in pharma and infra space of late and expect them to gain momentum ahead. So, alongside the existing leaders, traders can consider quality counters from the above two sectors for fresh buying.

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

NIFTY 8785 9000 8600

Sectors to watch

Sector Name Outlook

FMCG STABLE

BANKS STABLE

PHARMA STABLE

News

Religare Super Ideas**

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

Category Amt. MTD YTD

FII 1439 1303 39035

DII -268 175 -7645

NO OF CON-

TRACTS

TURNOVER IN CR

IDXFUTS 195828 14484

IDXOPT 4242563 327314

STKFUTS 701781 51857

Derivative Ideas **

Bharat Heavy Electricals Limited (BHEL) reported a 54.2% jump in net profit to Rs. 77.8 Cr for Q1, as against Rs. 50.4 Cr in the corresponding quarter last fiscal. Total Income from Operations was up by 28.7% at Rs. 5,622.5 Cr, compared to Rs. 4367.7 Cr previously. Shares of BHEL closed up 15.6%.

SpiceJet reported a 104% rise in net profit for Q1 at Rs. 149 Cr, as compared to Rs. 73 Cr previously. Total Revenues increased by 36.7% to Rs. 1,521.5 Cr against Rs. 1,113 Cr previously. Shares closed up 20%.

Oil India Limited (OIL) reported a 33.5% drop in net profit to Rs. 494.4 Cr for Q1, against Rs. 743.2 Cr previously. Total Income from Operations fell by 23% to Rs. 2,221.2 Cr, from Rs. 2,882.6 Cr previously.

Instrument B/S Lot INITIATION

RANGE SL TARGET

JETAIRWAYS

SEPT FUTS BUY 1000 545-550 530 600

*FII & DII data as on 6th September 2016

Scrip Buy/Sell CMP Initiation

Range SL* Target

GODREJIND BUY 436 432-436 422 460

SIEMENS BUY 1295.90 1295-1310 1250 1420

**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.



September 8, 2016

Religare Super Ideas

Investment Pick - Force Motors

The company has presence across automobiles, components and aggregates segments. Force's Traveller is one of the most popular inter and intra city mobility

vehicles in the country. In traveller segment, it is the market leader with market share of 67%. It has also forayed into defense, fire and rescue segment with the launch of paramilitary ambulances and emergency rescue vehicles.

Force Motors is engaged in the assembling of engines, axles and gear boxes for both Mercedes and BMW in India. It is the only company in the world to supply

engines to two of the world's biggest luxury car makers. It has set up two plants in Chennai and Pune to cater to BMW and Mercedes respectively with an aggregate investment of Rs. 300Cr.

Scrip CMP Target Duration Recommendation Price

FORCEMOT 3129.75 3,940 9-12 Months 3,088

JETAIRWAYS added 3.4% of open interest as fresh

long positions. Daily vwap is around 545 levels. On

charts, it is trading on verge of congestion zone

breakout of last 18 days. We expect it to rally till

600 in short term.

Strategy: BUY JETAIRWAYS SEPT FUTS BETWEEN

545-550, SL 530, TARGET 600.

Derivative Ideas

Godrej Industries Limited (GODREJIND)

GODREJIND, after the recent retracement, has

formed a fresh buying pivot while consolidating

above the support area of its short term moving

averages. And, now it’s ready to resume the

prevailing trend.

SIEMENS has seen fresh breakout from a flag

pattern on Wednesday i.e. 07th Sept and looks up-

beat for fresh surge.

Siemens Limited ( SIEMENS)



September 8, 2016

Result Calendar— September 2016

Sun Mon Tue Wed Thu Fri Sat

04 05

INTERLINK PETROLEUM LTD.

MALWA COTTON SPINNING MILLS LTD.

PETRONET LNG LTD.

SIMPLEX INFRASTRUCTURES LTD.

06

ELECTROSTEEL STEELS LTD.

HMT LTD.

JINDAL POLY FILMS LTD.

KOLTE-PATIL DEVELOPERS LTD.

NITIN FIRE PROTECTION INDUSTRIES LTD.

OIL INDIA LTD.

Siti Networks Ltd

07

ASIAN HOTELS (EAST) LTD.

BHARAT HEAVY ELECTRI-CALS LTD.

CHENNAI PETROLEUM COR-PORATION LTD.

DCW LTD.

IP RINGS LTD.-$

OIL AND NATURAL GAS CORPORATION LTD.

Precision Camshafts Ltd

Swelect Energy Systems Limited-$

08

APIS INDIA LTD.

ESSAR SHIPPING LTD.

HINDUSTAN COMPOSITES LTD.

Nagarjuna Fertilizers and Chemicals Ltd

PURAVANKARA PROJECTS LTD.

STEEL AUTHORITY OF INDIA LTD.

TV TODAY NETWORK LTD.

VENKY'S (INDIA) LTD.

ZUARI AGRO CHEMICALS LTD.

ZUARI GLOBAL LTD.

09

COAL INDIA LTD.

GUJARAT STATE PETRONET LTD.

NATIONAL ALUMINIUM CO.LTD.

RESPONSIVE INDUSTRIES LTD.

SJVN Ltd

Sobha Limited

TIMKEN INDIA LTD.

ZUARI AGRO CHEMICALS LTD.

ZUARI GLOBAL LTD.

10



September 8, 2016

Corporate Action Calendar — September 2016 (Cash Dividend)


04 05

06

JK Paper Ltd

Orient Bell Ltd

Bliss Gvs Pharma Ltd

Indsil Hydro Power and Manga-nese Ltd

Datamatics Global Services Ltd

Hindalco Industries Ltd

Sandur Manganese & Iron Ores Ltd/The

Sumedha Fiscal Services Ltd

Kauntam Papers Ltd

07

Nirlon Ltd

Grasim Industries Ltd

Grasim Industries Ltd

TT Ltd

Relaxo Footwears Ltd

Kanpur Plastipack Ltd

Tata Power Co Ltd

MOIL Ltd

Engineers India Ltd

Lakshmi Mills Co Ltd

NLC India Ltd

Lambodhara Textiles Ltd

BEML Ltd

Savera Industries Ltd

Magna Electro Castings Ltd

Orbit Exports Ltd

Sanco Trans Ltd

Pilani Investment & Industries Corp Ltd

08

Gujarat Hotels Ltd

Mangalam Cement Ltd

NBCC India Ltd

PNB Gilts Ltd

Emmbi Industries Ltd

Ugar Sugar Works Ltd

Nagarjuna Agrichem Ltd

Himatsingka Seide Ltd

Manali Petrochemicals Ltd

Indus Finance Ltd

Sicagen India Ltd

Escorts Ltd

GAIL India Ltd

Tips Industries Ltd

Pondy Oxides & Chemicals Ltd

Power Grid Corp of India Ltd

NHPC Ltd

Kolte-Patil Developers Ltd

Nahar Capital and Financial Ser-vices Ltd

Mazda Ltd

NTPC Ltd

Atul Auto Ltd

Nahar Spinning Mills Ltd

APL Apollo Tubes Ltd

Pokarna Ltd

Sun Pharmaceutical Industries Ltd

Cyient Ltd

09

Arihant Superstructures Ltd

Multi Commodity Exchange of India Ltd

Mold-Tek Packaging Ltd

Mold-Tek Technologies Ltd

Byke Hospitality Ltd/The

AK Capital Services Ltd

J Kumar Infraprojects Ltd

AIA Engineering Ltd

Frontline Securities Ltd

HT Media Ltd

KCP Sugar and Industries Corp Ltd

LT Foods Ltd

DHP India Ltd

PC Jeweller Ltd

NCL Industries Ltd

FIEM Industries Ltd

Beekay Steel Industries Ltd

Comfort Intech Ltd

Choice International Ltd

Diana Tea Co Ltd

10



September 8, 2016

Corporate Action Calendar— September 2016 (Acquisition)

Date Target Company Acquirer Company

9/6/2016 ADCC Infocad Ltd Private Investor

9/7/2016 Aayush Food & Herbs Ltd Private Investor

9/8/2016 Pervasive Commodities Ltd Enigma Merchants LLP

9/9/2016 Excel Crop Care Ltd Sumitomo Chemical Co Ltd

Economic Calendar — September 2016


04 05

Nikkei India PMI Services

Nikkei India PMI Composite

06 07 08 09

Trade Balance

Local Car Sales

Imports YoY

Exports YoY

10

Corporate Action Calendar— September 2016 (Stock Split)


04 05

06

Chembond Chemicals Ltd

07 08

Bajaj Finance Ltd

Mishtann Foods Ltd

09 10

Corporate Action Calendar— September 2016 ( Stock Dividend )


04 05

06

Techno Electric & Engineering Co Ltd

07 08

Ultracab India Ltd

WIM Plast Ltd

Bajaj Finance Ltd

09 10



September 8, 2016

Market Snapshot

Sectoral Indices Performance

Index Closing % Change % MTD % YTD

NIFTY Auto 10,360 0.11% 4.7% 25.5%

NIFTY Bank 20,407 -0.09% 3.1% 20.6%

NIFTY Energy 9,550 -0.43% -1.2% 11.3%

Nifty Financial Services 8,335 -0.61% 2.4% 18.1%

NIFTY FMCG 23,008 0.15% 1.8% 13.9%

NIFTY IT 10,500 -0.43% -0.4% -6.4%

NIFTY Media 2,952 -0.32% -0.5% 12.1%

NIFTY Metal 2,633 0.99% 2.6% 44.1%

NIFTY Pharma 11,633 0.18% 1.3% -2.8%

NIFTY PSU Bank 3,299 3.02% 6.0% 15.2%

NIFTY Realty 207 0.66% 0.9% 20.2%

Top Gainers - Nifty

Stock CMP (INR) % Chg % MTD % YTD

BHEL 159.65 15.56% 14.8% -5.6%

BANKBARODA 174.80 3.13% 7.3% 11.6%

ONGC 244.95 2.68% 3.7% 1.3%

SBIN 266.80 2.58% 5.7% 18.9%

ICICIBANK 278.15 2.00% 7.8% 6.4%

Top Losers - Nifty

Stock CMP (INR) % Chg % MTD % YTD

YESBANK 1,401.55 -2.72% 2.6% 93.1%

TATAPOWER 76.70 -2.29% -2.3% 13.0%

ASIANPAINT 1,177.20 -2.24% 1.7% 33.2%

HDFC 1,427.15 -2.12% 1.5% 12.9%

GAIL 395.95 -1.80% 3.1% 5.6%

Bulk Deals - NSE

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

Jubilant Foodworks Limite MORGAN STANLEY MAURITIUS COMPANY LTD SELL 430845 1083.6

7 46.69

Signet Industries Limited PRERNA SETHI SELL 1760771 36.54 6.43

Lakshmi Energy and Foods PRERNA SETHI BUY 1170209 48.85 5.72

Aptech Limited RAJESHKUMAR JHUNJHUNWALA BUY 250001 142.71 3.57

Aptech Limited ADROIT FINANCIAL SERVICES PRIVATE SELL 217573 144.15 3.14

Aptech Limited ADROIT FINANCIAL SERVICES PRIVATE BUY 217573 143.91 3.13

Lakshmi Energy and Foods ASHROJ CREDIT INDIA PRIVATE LIMITED SELL 652763 47.45 3.10

Signet Industries Limited PRERNA SETHI BUY 614847 39.66 2.44

MBL Infrastructures Ltd PRS SHARES & FINANCE PVT LTD BUY 300000 62.1 1.86

Lakshmi Energy and Foods ASHROJ CREDIT INDIA PRIVATE LIMITED BUY 342617 47.95 1.64

Delivery Spurt stocks

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

Religare Enterp. 730,478 8130% 4.73%

Shrenuj & Co. 406,739 4281% 2.33%

Automotive Ax- 101,038 2473% 8.04%

Godfrey Phillips 106,607 1327% 3.51%

Chola- 391,549 1094% 0.36%

Gammon Infra. 3,515,621 1006% -4.90%

Supreme Infra. 224,521 999% 1.67%

Guj Inds. Power 489,544 859% 3.25%

B H E L 13,968,836 847% 15.56%

Simplex Infra 328,993 830% 3.15%

*Bulk deals data as on September 6, 2016



September 8, 2016

Current Portfolio and Performance Summary as on 7th September’16

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

Bajaj Corp Consumer Goods May 13, 2016 9.3% 393 406

Reliance Industries Energy May 27, 2016 9.4% 970 1,018

Vinati Organics Chemicals June 28, 2016 9.8% 544 583

Magma Fincorp Financial Services June 30, 2016 8.5% 109 100

Sun Pharmaceutical

Industries Pharma July 15, 2016 9.5% 771 779

Apollo Hospitals

Enterprises Healthcare Services July 29, 2016 10.0% 1,362 1,377

Emami Consumer Goods August 3, 2016 10.4% 1,151 1,210

Castrol India Energy August 5, 2016 10.8% 425 467

Indiabulls Housing

Finance Financial Services August 8, 2016 10.0% 808 821

Cash 12.3%

Total Total 100%



September 8, 2016

Historical Performance as on 7th September’16

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

Religare Alpha 1.4% 10.4% 22.5% 14.1% 29.6%

Nifty 2.7% 7.9% 19.1% 16.0% 13.1%

Outperformance -1.3% 2.5% 3.3% -1.9% 16.5%



September 8, 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.



September 8, 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



September 8, 2016

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