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Religare Morning Digest

August 2, 2017

Nifty Outlook

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

NIFTY 10050 10500 10000

Nifty managed to close with decent gains in a dull trading session today, thanks to late hour buying mainly in rate sensitive counters. It traded in a narrow range for most part of the session, taking note of latest released macroeconomic data. However, sudden surge in last half an hour changed the tone completely and aided the index to close above 10100. On sectoral front, auto counters were in the focus from the beginning due to scheduled monthly sales figures while others traded mixed.

Markets have already discounted the rate cut tomorrow. We feel the quantum of rate cut and commentary from the apex bank would be crucial. Volatility will remain high with bias on positive side in rate sensitive pack so prefer hedged positions instead of naked trades before the event outcome. Nifty has next hurdle at 10300.

Sectors to watch

Sector Name Outlook

AUTO STABLE

FMCG STABLE

PHARMA WEAK

News

Religare Super Ideas**

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

Category Amt. MTD FYTD

FII -1197 1510 6976

DII 1768 4788 24840

NO OF CON-

TRACTS

TURNOVER IN CR

IDXFUTS 116950 10224

IDXOPT 2800215 254339

STKFUTS 630956 47693

Derivative Ideas **

PC Jewellers posted 27.4% jump in standalone net profit at Rs 135.8cr for Q1FY18 on strong sales. Total income grew 27.8% to Rs 2,140cr. Revenue from domestic sales rose to Rs 1,382.6cr from Rs 1,049.8cr, while income from exports improved to Rs 736cr from Rs 614.6cr in the said period.

Torrent Power reported strong growth in earnings led by operational and revenue performance. Consolidated profit growth in Q1 was more than 4-fold at Rs 203cr from Rs 45.6cr YoY. Revenue grew by 18.4% to Rs 3,059cr, while EBITDA surged 53% to Rs 795cr and margin expanded by 600 basis points to 26% YoY.

Zydus Cadila has received final approval from the USFDA to market Temozolomide capsules in strengths of 5 mg, 20 mg, 100 mg, 140 mg, 180 mg and 250 mg. Temozolomide capsules is a chemotherapy drug used in the management of brain tumors. The sale of Temozolomide is estimated at USD 100.4 million, as per IMS Health.

*FII & DII data as on 31st July 2017

Scrip Buy/Sell CMP Initiation

Range SL* Target

DCBBANK BUY 199.90 198-200 193 215

ICICIPRULI BUY 443.95 440-445 430 475

**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

INITIA-TION

PRICE

SL TAR-GET

TATASTEEL

AUG B 2000 570 562 586



August 2, 2017

Religare Super Ideas

Investment Pick - Sutlej Textiles

Sutlej Textiles Industries Ltd (STIL) reported mix set of numbers for Q1FY18. While net revenue growth of 18% YoY was above our estimates, the company

disappointed on the profit front. Led by higher input cost and other expenses, the EBITDA margins contracted 338bps YoY to 10.7%. PAT de-grew by 47.7% YoY.

We expect STIL to deliver improved performance from Q3FY18, especially on the margin front. With market leadership, diversified offerings of value added

products & steady capacity addition, STIL is placed in a sweet spot to exploit the available opportunities in the textile industry. We maintain BUY on the stock with revised target price of Rs 951.

Scrip CMP Target Duration Recommendation Price

SUTLEJTEX 874.50 951 9-12 Months 894

-

Derivative Ideas

TATASTEEL has seen fresh long buildup in Aug

futures. Put writing seen at 570 strike and good

call option buying was seen at 580 strike. We

expect the scrip to rally towards 586 in the short

term.

Strategy: BUY TATASTEEL AUG@570, SLOSS AT

562,TARGET 586.

DCB Bank Limited (DCBBANK) ICICI Prudential Life Insurance Company

Limited ( ICICIPRULI)

DCBBANK has been trading in a range for almost a

month around its 50 day EMA on daily chart and

witnessed a sharp surge today with noticeable rise

in volume, indicates breakout. Traders can initiate

fresh long in the given range.

After a decent correction from its 52 week high,

ICICIPRULI has found support around 435 mark of

late and likely to rebound strongly. We advise

traders to utilise this corrective phase to

accumulate fresh.



August 2, 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% 147.9

Atul Auto 22-Mar-16 506 580 14.6% 439.5

Cigniti Technologies Ltd. 5-Oct-16 419 538 28.3% 266.0

Fiem Industries 26-Dec-16 1,089 1,315 20.8% 890.5

Greenply Industries 3-Feb-17 268 304 13.4% 274.9

Arman Financial Services 22-Feb-17 226 340 50.0% 210.2

Berger Paints (I) Ltd 15-Mar-17 230 273 18.7% 248.8

Mayur Uniquoters Ltd 18-Apr-17 380 478 25.8% 360.5

Indo Count Industries Ltd. 17-May-17 198 240 21.2% 143.1

SML Isuzu 25-May-17 1,247 1,525 22.3% 1,116.7

Jain Irrigation Systems Ltd. 30-May-17 97 125 28.8% 105.4

Srikalahasthi Pipes Ltd 30-May-17 320 416 29.7% 370.5

Wonderla Holidays 31-May-17 378 430 13.7% 350.0

Tv Today Network 2-June-17 263 335 27.3% 242.2

The Byke Hospitality 6-June-17 190 242 27.4% 202.1

Mold-Tek Packaging Limited 7-June-17 274 340 24.1% 278.9

Castrol India 20-June-17 412 463 12.3% 400.0

Manpasand Beverages 21-June-17 798 891 11.7% 803.1

APL Apollo Tubes 12-July-17 1,596 2,352 47.4% 1,572.1

Force Motors 27-July-17 4,104 4,897 19.3% 3,937.7

Zee Entertainment Enterprises 28-July-17 539 592 9.8% 543.6

CRISIL 01-Aug-17 1,858 2,419 30.2% 1,845.3

Sutlej Textiles 01-Aug-17 894 951 6.3% 874.5



August 2, 2017

Corporate Action Calendar — August 2017 (Cash Dividend)

Sun Mon Tue Wed Thu Fri Sat

30 31

Eicher Motors Ltd

Simplex Realty Ltd

Panasonic Carbon India Co Ltd

Nilkamal Ltd

Gabriel India Ltd

Johnson Controls-Hitachi Air Conditioning India Ltd

Adani Ports & Special Economic Zone Ltd

Adani Enterprises Ltd

Indoco Remedies Ltd

Tata Chemicals Ltd

Tata Chemicals Ltd

Dollar Industries Ltd

Dhunseri Investments Ltd

Naga Dhunseri Group Ltd

Astral Polytechnik Ltd

Menon Bearings Ltd

IRB Infrastructure Developers Ltd

Sanofi India Ltd

01

Gravita India Ltd

TCPL Packaging Ltd

Allcargo Logistics Ltd

Century Plyboards India Ltd

Prabhat Dairy Ltd

Wonderla Holidays Ltd

Timken India Ltd

Morganite Crucible India Ltd

Disa India Ltd

Honeywell Automation India Ltd

Goodyear India Ltd

Peria Karamalai Tea & Produce Co Ltd/The

Frontline Securities Ltd

Parag Milk Foods Ltd

Parag Milk Foods Ltd

Citadel Realty & Developers Ltd

Apar Industries Ltd

McLeod Russel India Ltd

Hercules Hoists Ltd

02

Great Eastern Shipping Co

Bright Brothers Ltd

Crest Ventures Ltd

Hikal Ltd

Gujarat Pipavav Port Ltd

GlaxoSmithKline Consumer Healthcare Ltd

SH Kelkar & Co Ltd

Borosil Glass Works Ltd

Godrej Industries Ltd

Capital Trust Ltd/India

Praj Industries Ltd

Asahi India Glass Ltd

Ultramarine & Pigments Ltd

Kaira CAN Co Ltd

INEOS Styrolution India Ltd

Nava Bharat Ventures Ltd

Lotus Eye Hospital & Institute Ltd

AVT Natural Products Ltd

Panasonic Energy India Co GRP Ltd/India

Fomento Resorts & Hotels

Zodiac Clothing Co

Aegis Logistics Ltd

Page Industries Ltd

Ambuja Cements Ltd

Nestle India Ltd

Indiabulls Housing Finance

03

Shilchar Technologies Ltd

Thyrocare Technologies Ltd

Quick Heal Technologies Ltd

Avanti Feeds Ltd

Kajaria Ceramics Ltd

Orient Paper & Industries Ltd

Emami Paper Mills Ltd

JMC Projects India Ltd

Rajratan Global Wire Ltd

Diana Tea Co Ltd

TAKE Solutions Ltd

Triveni Turbine Ltd

Deccan Cements Ltd

Kalpataru Power Transmission Ltd

Mindteck India Ltd

Clariant Chemicals India Ltd

Prime Urban Development India Ltd

VST Tillers Tractors Ltd

Indian Card Clothing Co Ltd

WIM Plast Ltd

National Fittings Ltd

DPSC Ltd

Sonata Software Ltd

Prima Plastics Ltd

Flex Foods Ltd

KDDL Ltd

Savera Industries Ltd

Advance Syntex Ltd

Foseco India Ltd

HCL Technologies Ltd

04

Peria Karamalai Tea & Produce Co Ltd

Akzo Nobel India Ltd

Welcast Steels Ltd

Voltas Ltd

Tata Investment Corp Ltd

AIA Engineering Ltd

NESCO Ltd

Tata Global Beverages Ltd

Balkrishna Industries Ltd

05



August 2, 2017

Corporate Action Calendar — August 2017 (Stock Dividend)


30 31

01

Jayant Agro-Organics Ltd

02

03 04

VIJI Finance Ltd

05

Corporate Action Calendar — August 2017 (Stock Split)


30 31

01 02

03

Coral India Finance & Housing Ltd

04 05

Corporate Action Calendar — August 2017 (Acquisition)

Date Target Company Acquirer Company

7/30/2017 TechJini Solutions Pvt Ltd Datamatics Global Services Ltd

7/31/2017 Holiday Triangle Travel Pvt Ltd Potential Buyer

7/31/2017 Tagos Design Innovations Pvt Ltd Zee Entertainment Enterprises Ltd

7/31/2017 SRS Bright Retail Ltd SRS Ltd

8/3/2017 Transchem Ltd Multiple acquirers

Economic Calendar — August 2017 (Stock Split)


30 31

Fiscal Deficit INR Crore

Eight Infrastructure Industries

01

Nikkei India PMI Mfg

02

RBI Repurchase Rate

RBI Reverse Repo Rate

RBI Cash Reserve Ratio

03

Nikkei India PMI Services

Nikkei India PMI Composite

04 05



August 2, 2017

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

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

Emami Consumer Goods August 3, 2016 8.6% 1,151 1,072

Castrol India Energy August 5, 2016 8.7% 425 400

Amara Raja Batteries Auto March 22, 2017 10.6% 868 847

TV Today Network Media & Ent. May 10, 2017 8.8% 279 242

Tata Motors Auto May 26, 2017 9.2% 475 447

Capital First Financial Services May 26, 2017 10.7% 705 775

RBL Bank Financial Services July 11, 2017 9.5% 532 530

Muthoot Finance Financial Services July 26, 2017 9.7% 482 471

Talwalkars Better value Fitness

Health Fitness July 27, 2017 10.4% 302 312

Cash 13.7%

Total 100%



August 2, 2017

Historical Performance as on 1st August’17

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

Religare Alpha -1.7% 9.5% 7.6% 37.7%

Nifty 8.7% 16.0% 17.1% 28.3%

Outperformance -10.4% -6.6% -9.5% 9.4%



August 2, 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 2, 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]

Vipin Kumar [email protected]

Team Members



August 2, 2017

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