religare morning · pdf filerenaissance jewellery 22 23 24 25 26. ... religare morning digest...

1 Disclaimer: http://www.religareonline.com/research/Disclaimer/

Religare Morning Digest

August 21, 2017

Nifty Outlook

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

NIFTY 9960 10000 9800

Markets traded under pressure and lost over half a percent, pressurised by feeble global cues and slide in IT major, Infosys. Sentiment was downbeat from the beginning on the news of terrorist attack in Spain and gloomy geo-political situation between the US and North Korea. On local front, the stock of Infosys witnessed sharp decline on the news of Vikas Sikka stepping down as CEO, which further added to negativity.

Indications are in the favour of further slide thus traders should add few shorts as hedge and give preference to PSU banks and pharma counters for fresh selling. Majority facing issues due to volatility and we do not expect any relief from that front. Nifty has immediate support at 9780 and any decisive fall below that mark will trigger fresh decline.

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 -981 -7627 -16999

DII 829 10070 34910

NO OF CON-

TRACTS

TURNOVER IN CR

IDXFUTS 226488 18490

IDXOPT 4118434 344766

STKFUTS 793627 53205

Derivative Ideas **

Talbros Engineering has approved the capitalization of free reserve by issuance of bonus equity shares in the ratio of 1:1 to the members of the company. The stock closed up by 16%.

Interglobe Aviation fell 3% after a media report indicated that its budget carrier IndiGo grounded some planes and cancelled over 80 flights due to the Pratt and Whitney supplied engine issues. Indigo cancelled a total of 667 flights between June 21 and July 3 this year, due to the grounding of these planes.

Infosys dropped over 13% intraday after the Board accepted Mr. Vishal Sikka’s resignation as Managing Director and CEO of Infosys. UB Pravin Rao has been appointed as interim chief executive officer and managing director reporting to Sikka under the overall supervision and control of the company’s Board.

*FII & DII data as on 17th August 2017

Scrip Buy/Sell CMP Initiation

Range SL* Target

RBLBANK BUY 527.25 518-523 510 550

LT SELL FUTS

1136 1140-1150 1170 1080

**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

NIFTY 31

AUG 9600

PE

BUY 75 17-19 05 48



August 21, 2017

Religare Super Ideas

Investment Pick - Srikalahasthi Pipes

Srikalahasthi Pipes Ltd (SPL) reported in-line numbers on the profit front with 14.7% & 15.2% YoY de-growth in EBITDA and PAT. However, revenue growth of

55.1% YoY was impressive and significantly above our estimates.

Going forward, driven by capacity expansion and demand revival, we expect SPL to deliver healthy revenue growth over the next two years. While margins could

remain under pressure in FY18E due to higher input cost, we expect a revival in FY19E, led by backward integration initiatives and better capacity utilization. We maintain BUY on the stock with target price of Rs 416.

Scrip CMP Target Duration Recommendation Price

SRIPIPES 365.45 416 9-12 Months 362

Nifty has witnessed fresh long liquidation at upper

levels of 9900,some short build up was also seen

in yesterdays trading session. Huge call writing also

seen at 9900 strike, we expect Nifty to be in

9900-9600 range in the short term.

Strategy: BUY NIFTY 9600PE@17-19 SLOSS 5

TRGT 48

Derivative Ideas

RBL Bank Limited (RBLBANK) Larsen & Toubro Limited (LT)

After consolidating in a broader range for almost

two months, RBLBANK has formed a fresh buying

pivot on daily chart and is all set for a fresh strong

surge ahead. Traders are advised to go long in the

mentioned range.

We are reiterating our short position in LT with the

updated levels as it was not initiated earlier.



August 21, 2017

Religare Investment Calls

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

Nandan Denim 5-Jan-16 150 183 22.0% 145.8

Atul Auto 22-Mar-16 506 580 14.6% 454.2

Cigniti Technologies Ltd. 5-Oct-16 419 538 28.3% 213.3

Fiem Industries 26-Dec-16 1,089 1,315 20.8% 885.3

Greenply Industries 3-Feb-17 268 304 13.4% 274.0

Arman Financial Services 22-Feb-17 226 340 50.0% 182.4

Berger Paints (I) Ltd 15-Mar-17 230 273 18.7% 240.6

Mayur Uniquoters Ltd 18-Apr-17 380 478 25.8% 350.9

Indo Count Industries Ltd. 17-May-17 198 240 21.2% 114.4

SML Isuzu 25-May-17 1,247 1,525 22.3% 948.2

Jain Irrigation Systems Ltd. 30-May-17 97 125 28.8% 98.1

Tv Today Network 2-June-17 263 335 27.3% 240.1

Mold-Tek Packaging Limited 7-June-17 274 340 24.1% 293.0

Castrol India 20-June-17 412 463 12.3% 387.7

APL Apollo Tubes 12-July-17 1,596 2,352 47.4% 1,524.8

Force Motors 27-July-17 4,104 4,897 19.3% 3,882.5

Zee Entertainment Enterprises 28-July-17 539 592 9.8% 511.6

CRISIL 01-Aug-17 1,858 2,419 30.2% 1,829.8

Sutlej Textiles 01-Aug-17 894 951 6.3% 834.3

LIC Housing Finance 09-Aug-17 681 748 9.8% 658.1

Eicher Motors Ltd 09-Aug-17 31,630 40,467 27.9% 31,511.5

Wonderla Holidays 17-Aug-17 339 430 26.8% 341.2

Manpasand Beverages 17-Aug-17 803 891 11.0% 819.8

The Byke Hospitality 17-Aug-17 195 242 24.1% 189.7

Century Plyboards 18-Aug-17 251 307 22.3% 248.9

NRB Bearings 18-Aug-17 118 139 17.8% 122.0

Srikalahasthi Pipes Ltd 18-Aug-17 362 416 14.8% 365.5



August 21, 2017

Corporate Action Calendar — August 2017 (Cash Dividend)

Sun Mon Tue Wed Thu Fri Sat

20 21

Future Lifestyle Fashions Ltd

Minda Industries Ltd

Future Enterprises Ltd

Future Enterprises Ltd

Sunil Hitech Engineers Ltd

Mallcom India Ltd

GOCL Corp Ltd

Swiss Glascoat Equipments Ltd

Jaysynth Dyestuff India Ltd

Competent Automobiles Co Ltd

Sphere Global Services Ltd

Hinduja Global Solutions Ltd

Sun TV Network Ltd

22

Pfizer Ltd/India

Pfizer Ltd/India

Safari Industries India Ltd

Entertainment Network India Ltd

Entertainment Network India Ltd

Gini Silk Mills Ltd

Man Infraconstruction Ltd

Oceanaa Biotek Industries Ltd

Sharda Motor Industries Ltd

Manappuram Finance Ltd

Triveni Engineering & Industries Ltd

23

Bharat Heavy Electricals Ltd

Dalmia Bharat Sugar

Ador Welding Ltd

Joonktollee Tea & Industries

Mangalam Cement Ltd

Symphony Ltd

Rane Holdings Ltd

India Glycols Ltd

Pidilite Industries Ltd

KCP Ltd

Balaji Telefilms Ltd

Rupa & Co Ltd

TV Today Network Ltd

Lovable Lingerie Ltd

Centrum Capital Ltd

Mazda Ltd

Linc Pen & Plastics Ltd

KSE Ltd

Indus Finance Ltd

Deep Industries Ltd

Rain Industries Ltd

Trident Ltd/India

Granules India Ltd

24

Vimta Labs Ltd

Maruti Suzuki India Ltd

Maruti Suzuki India Ltd

Nitin Spinners Ltd

Chambal Fertilizers and Chemicals Ltd

Shree Hari Chemicals Export Ltd

India Motor Parts and Accessories Ltd

India Cements Ltd/The

Ahmedabad Steelcraft Ltd

Kanoria Chemicals & Industries Ltd

25 26

Corporate Action Calendar — August 2017 (Stock Buyback)

Sun Mon Tue Wed Thu Fri Sat

20 21

Cheviot Co Ltd

Renaissance Jewellery

22 23 24 25 26



August 21, 2017

Current Portfolio and Performance Summary as on 18th August’17

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

Emami Consumer Goods August 3, 2016 9.1% 1,151 1,102

Castrol India Energy August 5, 2016 8.7% 425 388

Amara Raja Batteries Auto March 22, 2017 10.3% 868 797

TV Today Network Media & Ent. May 10, 2017 9.0% 279 240

RBL Bank Financial Services July 11, 2017 9.7% 532 527

Muthoot Finance Financial Services July 26, 2017 9.9% 482 464

Talwalkars Better value

Fitness Health Fitness July 27, 2017 10.0% 302 290

Va Tech Wabag Infrastructure August 16, 2017 9.9% 636 630

Nilkamal Plastic Products August 17, 2017 9.9% 1,682 1,648

Cash 13.5%

Total 100%



August 21, 2017

Historical Performance as on 18th August’17

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

Religare Alpha -3.3% 5.9% 4.9% 33.7%

Nifty 4.3% 11.5% 13.4% 24.8%

Outperformance -7.6% -5.6% -8.5% 8.9%



August 21, 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.



August 21, 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



August 21, 2017

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.

http://old.religareonline.com/research/Disclaimer/Disclaimer_RSL.html

religare morning · pdf filerenaissance jewellery 22 23 24 25 26. ... religare morning digest...

Documents