religare morning digest · dlf limited (dlf) rbl bank limited (rblbank) dlf has rebounded strongly...

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Religare Morning Digest

September 4, 2017

Nifty Outlook

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

NIFTY 9960 10000 9700

Markets shrugged off weak GDP data and posted decent gains today, thanks to firm global markets. After a flat start, Nifty moved gradually higher and closed around the day’s high. In line with the benchmark, noticeable recovery was witnessed across the board wherein realty, pharma, media and auto pack gained maximum.

Though Nifty has managed to surpass the 9900 zone but the actual test is to sustain above 10000. We haven’t seen any decisive move yet and indications are still mixed. Traders should continue with stock specific trading approach and see how market behaves at higher levels.

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 78 -15996 -25368

DII 510 16207 41047

NO OF CON-

TRACTS

TURNOVER IN CR

IDXFUTS 149541 12492

IDXOPT 2644237 226925

STKFUTS 684422 53734

Derivative Ideas **

Dr Reddy's Laboratories rose after settlement agreement with US-based Vivus to resolve a long-pending patent litigation related to anti-obesity pill Qsymia. The settlement agreement permits the company to begin selling a generic version of Qsymia on June 1, 2025, or earlier under certain circumstances. In the event of a launch earlier than June 1, 2025, Vivus will receive a royalty on sales of the generic version of Qsymia. The drug is used to manage chronic overweight in adults with obesity symptoms.

Among some key auto sales numbers released for the month of August, Bajaj Auto reported 3% jump in total sales to 335,031 units compared to 325,347 units reported in the same month of last year. Total motorcycles sales of Eicher Motors rose 22% to 67,977 units in August 2017 over August 2016.

Tata Motors reported 14% jump in passenger and commercial vehicles (including exports). The company's domestic sales of commercial and passenger vehicles rose 26% to 45,906 units due to growing demand across segments and increased positive customer sentiments.

*FII & DII data as on 31st August 2017

Scrip Buy/Sell CMP Initiation

Range SL* Target

DLF BUY 191.60 188-190 180 210

RBLBANK BUY 535.35 530-535 515 570

**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

BANKNIFTY

Buy

24500CE

/Sell

25000CE

40 188-190 120 310



September 4, 2017

Religare Super Ideas

Investment Pick - Castrol India Ltd

Castrol India Ltd (CIL) reported disappointing numbers for Q2CY17 with a net revenue and PAT de-growth of 10.3% & 33.3% YoY respectively. A sharp fall in the

gross margins (-629 bps) and EBITDA margins (-861bps) was disappointing. Steep volume decline in CV segment, muted realisations and higher base oil prices impacted the overall growth.

While Q2CY17 was largely hit due to GST transition and lingering effect of demonetization, we expect a gradual revival in H2CY17, led by improved volume

offtake and stability in the base oil prices. However, meaningful revival could take time. Lower tax incidence under lubricants due to GST is likely to benefit CIL in the long term. We maintain BUY with revised target price of Rs 426.

Scrip CMP Target Duration Recommendation Price

CASTROLIND 389.90 426 9-12 Months 389

BANKNIFTY has witnessed fresh long buildup. We

advocate doing BankNifty Bull call spread through

options as per levels mentioned below.

Strategy: Buy BankNifty 28Sep 24500 CE and sell

BankNifty 28Sep 25000 CE, between 188-190, stop

loss at 120, target 310.

Derivative Ideas

DLF Limited (DLF) RBL Bank Limited (RBLBANK)

DLF has rebounded strongly of late after testing

the support area around 155 and formed a fresh

buying pivot as well. Traders can utilise this to

initiate fresh longs in the given range.

RBLBANK has been consolidating in a broader range

for last three months or so. At current juncture, it is

trading on the verge of breakout. We suggest

accumulating in given range and hold with the

recommended levels for breakout.



September 4, 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% 220.7

Fiem Industries 26-Dec-16 1,089 1,315 20.8% 949.5

Greenply Industries 3-Feb-17 268 304 13.4% 275.1

Arman Financial Services 22-Feb-17 226 340 50.0% 217.2

Berger Paints (I) Ltd 15-Mar-17 230 273 18.7% 250.0

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

SML Isuzu 25-May-17 1,247 1,525 22.3% 944.9

Tv Today Network 2-June-17 263 335 27.3% 255.9

APL Apollo Tubes 12-July-17 1,596 2,352 47.4% 1,585.0

Force Motors 27-July-17 4,104 4,897 19.3% 3,849.0

Zee Entertainment Enterprises 28-July-17 539 592 9.8% 523.7

CRISIL 01-Aug-17 1,858 2,419 30.2% 1,905.5

Sutlej Textiles 01-Aug-17 894 951 6.3% 894.9

LIC Housing Finance 09-Aug-17 681 748 9.8% 681.3

Eicher Motors Ltd 09-Aug-17 31,630 40,467 27.9% 31,772.4

Wonderla Holidays 17-Aug-17 339 430 26.8% 345.9

Manpasand Beverages 17-Aug-17 803 891 11.0% 805.1

The Byke Hospitality 17-Aug-17 195 242 24.1% 186.0

Century Plyboards 18-Aug-17 251 307 22.3% 252.0

NRB Bearings 18-Aug-17 118 139 17.8% 120.1

Srikalahasthi Pipes Ltd 18-Aug-17 362 416 14.8% 357.7

Avanti Feeds 21-Aug-17 1,921 2,240 16.6% 1,857.3

Jain Irrigation Systems Ltd. 23-Aug-17 93 125 34.4% 98.9

Jamna Auto Industries 31-Aug-17 252 279 10.7 % 254.6

Mold-Tek Packaging Limited 31-Aug-17 301 340 13.0 % 309.6

Swaraj Engines Ltd 31-Aug-17 1,985 2,201 10.9% 2,115.1

Mayur Uniquoters Ltd 01-Sept-17 360 460 27.7% 361.4

Castrol India 01-Sept-17 389 426 9.6% 389.9



September 4, 2017

Corporate Action Calendar — September 2017 (Cash Dividend)

Sun Mon Tue Wed Thu Fri Sat

03 04

Kriti Industries India Ltd

Kriti Nutrients Ltd

Foods & Inns Ltd

Ratnamani Metals & Tubes Ltd

Sintex Industries Ltd

Jindal Hotels Ltd

Hindustan Composites Ltd

Karma Energy Ltd

Advanced Enzyme Tech-nologies Ltd

Shivalik Rasayan Ltd

Wires & Fabriks SA Ltd

Navkar Builders Ltd

Jai Corp Ltd

05

Force Motors Ltd

ION Exchange India Ltd

Datamatics Global Services Ltd

Priya Ltd

Star Paper Mills Ltd

Hindalco Industries Ltd

Tips Industries Ltd

Care Ratings Ltd

Castrol India Ltd

06

Balmer Lawrie Investments Ltd

Coral India Finance & Hous-ing Ltd

Banswara Syntex Ltd

Balkrishna Industries Ltd

Simplex Castings Ltd

India Gelatine & Chemical Ltd

Kiran Vyapar Ltd

Balmer Lawrie & Co Ltd

KCP Sugar and Industries Corp Ltd

Asian Granito India Ltd

07

Petronet LNG Ltd

Caplin Point Laboratories Ltd

Vardhman Textiles Ltd

PNB Gilts Ltd

Gulf Oil Lubricants India Ltd

Vardhman Holdings Ltd

Pressman Advertising Ltd

Strides Shasun Ltd

Ramkrishna Forgings Ltd

Comfort Intech Ltd

Banco Products India Ltd

Subros Ltd

NBCC India Ltd

Sinclairs Hotels Ltd

B&A Ltd

Arrow Greentech Ltd

Escorts Ltd

NTPC Ltd

Godfrey Phillips India Ltd

Apollo Hospitals Enterprise Ltd

Nahar Industrial Enterprises Ltd

Ganesh Housing Corp Ltd

NBI Industrial Finance Co Ltd

Beekay Steel Industries Ltd

Orient Abrasives Ltd

Mercator Ltd

Avantel Ltd

Rubfila International Ltd

Centrum Capital Ltd

Manaksia Ltd

08

Manaksia Industries Ltd

ARO Granite Industries Ltd

V-Mart Retail Ltd

Victoria Mills Ltd

Pokarna Ltd

Whirlpool of India Ltd

Bigbloc Construction Ltd

Sharda Cropchem Ltd

Abhijit Trading Co Ltd

LT Foods Ltd

Swastika Investmart Ltd

Marathon Nextgen Realty Ltd

KRBL Ltd

Byke Hospitality Ltd/The

Byke Hospitality Ltd/The

Orient Refractories Ltd

Orient Beverages Ltd

Andrew Yule & Co Ltd

Sanco Trans Ltd

09



September 4, 2017

Corporate Action Calendar — September 2017 (Stock Dividend)


03 04

05 06 07

Reliance Industries Ltd

08 09

Economic Calendar — September 2017


03 04

05

Nikkei India PMI Services

Nikkei India PMI Composite

06 07 08

Trade Balance

Exports YoY

Imports YoY

09

Corporate Action Calendar — September 2017 (Stock Buyback)


03 04

Bayer CropScience Ltd

05 06 07 08 09



September 4, 2017

Current Portfolio and Performance Summary as on 1st September’17

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

Castrol India Energy August 5, 2016 8.7% 425 390

Amara Raja Batteries Auto March 22, 2017 10.3% 868 801

TV Today Network Media & Ent. May 10, 2017 9.5% 279 256

RBL Bank Financial Services July 11, 2017 9.8% 532 535

Muthoot Finance Financial Services July 26, 2017 10.1% 482 476

Talwalkars Better value

Fitness Health Fitness July 27, 2017 9.9% 302 290

Va Tech Wabag Infrastructure August 16, 2017 9.6% 636 612

Nilkamal Plastic Products August 17, 2017 9.3% 1,682 1,568

CDSL BFSI August 23, 2017 9.8% 334 338

Cash 13.0%

Total 100%



September 4, 2017

Historical Performance as on 1st September’17

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

Religare Alpha -2.2% 7.9% 3.9% 34.3%

Nifty 3.7% 12.1% 13.7% 26.5%

Outperformance -5.9% -4.2% -9.8% 7.8%



September 4, 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 4, 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 4, 2017

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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 · dlf limited (dlf) rbl bank limited (rblbank) dlf has rebounded strongly...

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