religare morning digest morning digest april 27, 2017 ... pvr signed a deal with imax for additional...

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Religare Morning Digest

April 27, 2017

Nifty Outlook

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

NIFTY 9215 9400 9100

Nifty inched higher for the third day in a row and gained nearly half a percent amid volatility. Firm Asian markets and strengthening rupee helped index to open strong which further supported by renewed buying in select index majors. However, profit taking in latter half marginally trimmed the gains and pushed the market breadth also slightly on the negative side.

Volatility will remain high due to the derivatives expiry tomorrow. We reiterate our positive view on markets and suggest using dips to add quality stocks. Auto counters are all set for fresh surge after the recent consolidation so keep a close eye on them for fresh buying opportunities.

Sectors to watch

Sector Name Outlook

BANK STABLE

ENERGY STABLE

MEDIA STABLE

News

Religare Super Ideas**

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

Category Amt. MTD FYTD

FII 179 -4804 -4804

DII 998 6318 6318

NO OF CON-

TRACTS

TURNOVER IN CR

IDXFUTS 434166 32827

IDXOPT 7458482 576450

STKFUTS 1721846 129050

Derivative Ideas **

Dilip Buildcon Ltd (DBL) bagged three road projects worth Rs. 3,269 Cr in Maharashtra from the National Highway Authority of India. DBL has incorporated three SPV (Special Purpose Vehicle) companies for the projects.

PVR signed a deal with IMAX for additional 5 screens. IMAX is known for delivering better movie experience. The installation of the additional screens would cost approximately Rs. 55 Cr.

Kolte Patil Developers signed its largest re-development project in Mumbai with 15,035 square meters plot area. The project is located in a strategic region in the vicinity of the highway and upcoming metro line.

*FII & DII data as on 25th April 2017

Scrip Buy/Sell CMP Initiation

Range SL* Target

ITC BUY 290.90 288-292 279 310

MANAPPURAM BUY 95.65 95.50-

96.50 90 108

**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

PRICE SL

TAR-GET

BHARTIARTL BUY MAY

FUTS 1700 349-351 340 370



April 27, 2017

Religare Super Ideas

Investment Pick - CRISIL

CRISIL's 11.9% YoY Revenue growth in Q1CY17 was driven by pick-up in the research business while Operating margins came in largely in-line at 30.3%. However,

adverse forex impact of Rs 11.9 cr led to flattish profit growth of Rs 73.3 cr. Though sluggish credit off-take and diminished prospects of SME segment due to government subsidy cut for FY18 could impact business in the near-term, we continue to like Crisil for it strong parentage, superior return ratios, and healthy dividend pay-outs.

With the ratings industry's healthy long-term prospects, strong visibility due to recent RBI measures to deepen the bond market and Crisil's robust 40% plus

market share therein, we maintain our 'BUY' on the stock.

Scrip CMP Target Duration Recommendation Price

CRISIL 1,921.50 2,540 9-12 Months 1,911

BHARTIARTL added around 19% of open interest as

long buildup along with good delivery based buying

in previous session. It has rolled around 52% in next

contract so far. It has also witnessed congestion

zone breakout on daily charts on April 26, 2017. We

suggest buying BHARTIARTL May futures as per

levels given below.

Strategy: BUY BHARTIARTL MAY FUTS BETWEEN

349-351, SL 340, TARGET 370.

Derivative Ideas

ITC Limited (ITC)

Manappuram Finance Limited

(MANAPPURAM)

After a month long consolidation phase, ITC has

witnessed a fresh surge today i.e. on April 26 and

made a new record high. Its chart pattern indicates

positive trend to continue.

MANAPPURAM has been consolidating in a narrow

range for last two months while holding strongly

above its short term moving averages on multiple

time frames. It has recently tested the lower band

of the range, offering fresh buying opportunity

before breakout.



April 27, 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% 117.8

Atul Auto 22-Mar-16 506 580 14.6% 432.1

Cigniti Technologies Ltd. 5-Oct-16 419 538 28.3% 324.3

Fiem Industries 26-Dec-16 1,089 1,315 20.8% 1,014.4

Force Motors 25-Jan-17 4,274 5,210 21.9% 4,650.4

Zee Entertainment Enterprises 27-Jan-17 498 592 18.8% 527.8

Greenply Industries 3-Feb-17 268 304 13.4% 282.5

Manpasand Beverages 7-Feb-17 681 854 25.4% 705.6

Wonderla Holidays 7-Feb-17 380 430 13.1% 391.1

Century Plyboards 8-Feb-17 216 300 38.8% 264.4

NRB Bearings 9-Feb-17 108 132 22.2% 121.1

Tv Today Network 14-Feb-17 270 360 33.3% 268.3

Sutlej Textiles 14-Feb-17 843 1,032 22.5% 920.8

Indo Count Industries Ltd. 17-Feb-17 164 207 26.2% 194.6

Talwalkars Better Value Fitness 20-Feb-17 217 328 51.1% 271.2

SML Isuzu 21-Feb-17 1,240 1,560 25.8% 1,334.9

Arman Financial Services 22-Feb-17 226 340 50.0% 196.2

Jamna Auto 28-Feb-17 209 272 30.1% 239.2

Castrol India 7-Mar-17 412 483 17.1% 438.3

Berger Paints (I) Ltd 15-Mar-17 230 273 18.7% 255.5

Avanti Feeds 16-Mar-17 715 945 32.2% 855.4

Huhtamaki PPL Ltd 30-Mar-17 228 287 26.0% 265.6

Bajaj Finance Ltd 31-Mar-17 1,170 1,421 21.5% 1,309.7

The Byke Hospitality 11-Apr-17 191 242 26.7% 208.8

Mayur Uniquoters Ltd 18-Apr-17 380 478 25.8% 405.7

CRISIL 26-Apr-17 1,911 2,540 32.9% 1,921.5



April 27, 2017

Corporate Action Calendar — April 2017 (Stock Split)

Sun Mon Tue Wed Thu Fri Sat

23 24

Avance Technologies

25 26

BLS International Services Ltd

27 28 29

Corporate Action Calendar — April 2017 (Cash Dividend)


23 24 25

Sanofi India Ltd

26

Cairn India Ltd

Orient Paper & Industries Ltd

27

Elantas Beck India Ltd

Mold-Tek Technologies Ltd

28

ABB India Ltd

29

Economic Calendar — April 2017


23 24 25

Eight Infrastructure Industries

26 27 28 29

Corporate Action Calendar — April 2017 (Acquisition)

Date Target Company Acquirer Company

4/24/2017 Aurum Soft Systems Ltd Private Investor

4/25/2017 Rammaica India Ltd Private Investor

4/26/2017 Pritika Auto Industries Ltd Multiple acquirers

4/26/2017 Regency Investments Ltd Private Investor



April 27, 2017

Result Calendar — April 2017


23 24

APPLE CREDIT CORPORATION LTD.

HEXAWARE TECHNOLOGIES LTD.

Indiabulls Housing Finance Ltd

JSW Holdings Limited

PERSISTENT SYSTEMS LTD.

RALLIS INDIA LTD.

Regency Investments Ltd

RELIANCE INDUSTRIES LTD.

SANWARIA AGRO OILS LTD.-$

STANROSE MAFATLAL INVESTMENTS AND FINANCE LTD.

TIMES GUARANTY LTD.

ULTRATECH CEMENT LTD.

WENDT (INDIA) LTD.

25

ABans Enterprises Ltd

ACROW INDIA LTD.

AXIS BANK LTD.

CAN FIN HOMES LTD.

ICICI Prudential Life Insurance Company Ltd

IDFC Bank Ltd

INDIAN BANK

International Paper APPM Limited

KEWAL KIRAN CLOTHING LTD.

LIC HOUSING FINANCE LTD.

MAHINDRA & MAHINDRA FINANCIAL SERVICES LTD.

Mega Nirman and Industries Ltd

NUCLEUS SOFTWARE EXPORTS LTD.

PERSISTENT SYSTEMS LTD.

RAJASTHAN PETRO SYNTHETICS LTD.

SAVANT INFOCOMM LTD.

SIP INDUSTRIES LTD.

SWARAJ ENGINES LTD.

TAYO ROLLS LTD.-$

VERTEX SECURITIES LTD.

WIPRO LTD.

26

DHRUV ESTATES LTD.

FOSECO INDIA LTD.

Gujarat Bitumen Ltd

GIC HOUSING FINANCE LTD.

KPIT Technologies Limited

KSB PUMPS LTD.

LAKSHMI VILAS BANK LTD.

LKP Finance Limited

LKP Securities Ltd

PROGRESSIVE EXTRACTIONS & EXPORTS LTD.

SADHANA NITROCHEM LTD.

SUPREME PETROCHEM LTD.

SURAJ LTD.-$

TATA SPONGE IRON LTD.

VISHVPRABHA TRADING LTD.

27

BIOCON LTD.

EPC INDUSTRIE LTD.

FUTURISTIC SOLUTIONS LTD.

HATSUN AGRO PRODUCT LTD.

HIL LTD.

KOKUYO CAMLIN LTD.-$

KOTAK MAHINDRA BANK LTD.

Mahindra CIE Automotive Limited

MARAL OVERSEAS LTD.

MARUTI SUZUKI INDIA LTD.

MENON BEARINGS LTD.

SHRIRAM ASSET MANAGEMENT CO.LTD.

Syngene International Ltd

TATA ELXSI LTD.

TRANSWARRANTY FINANCE LTD.

TVS MOTOR COMPANY LTD.

28

AMBUJA CEMENTS LTD.

AUTOMOTIVE STAMP-INGS & ASSEMBLIES LTD.

BERVIN INVESTMENT & LEASING LTD.

ADITYA BIRLA MONEY LTD.-$

Cholamandalam Investment and Finance Company Ltd

COROMANDEL INTERNATIONAL LTD.

DEEPAK NITRITE LTD.-$

DIAMINES & CHEMICALS

DIC INDIA LTD.

FEDERAL BANK LTD.

IDFC LIMITED

KIRLOSKAR FERROUS INDUSTRIES LTD.

Navin Fluorine International Limited-$

SUPREME INDUSTRIES LTD.

SWARNA SECURITIES LTD.

UNIPHOS ENTERPRISES LTD.

UPL Limited

29

ASTRA MICROWAVE PRODUCTS LTD.

COROMANDEL ENGINEERING COMPANY

JSW Energy Ltd

MANGALYA SOFT-TECH LTD.

TRANSCORP INTERNATIONAL LTD.



April 27, 2017

Current Portfolio and Performance Summary as on 26th April’17

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

Emami Consumer Goods August 3, 2016 8.1% 1,151 1,028

Castrol India Energy August 5, 2016 9.4% 425 438

Sml Isuzu Auto February 6, 2017 9.6% 1,265 1,335

UPL Fertilisers & Pesticides March 17, 2017 10.3% 723 831

Amara Raja Batteries Auto March 22, 2017 10.8% 868 884

Cholamandalam Investment and Finance

Financial Services April 5, 2017 12.0% 975 1,138

Power Grid Corporation of India

Energy April 12, 2017 10.9% 200 206

Cash 28.9%

Total Total 100%



April 27, 2017

Historical Performance as on 26th April’17

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

Religare Alpha 13.3% 14.3% 4.7% 23.2% 40.6%

Nifty 2.7% 10.3% 8.5% 17.4% 18.6%

Outperformance 10.6% 4.0% -3.9% 5.8% 22.0%



April 27, 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.



April 27, 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]

Swati Saxena [email protected]

Vipin Kumar [email protected]

Team Members



April 27, 2017

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