religare morning digest · religare morning digest january 31, 2017 nifty outlook ... emami paper...
TRANSCRIPT
1 Disclaimer: http://www.religareonline.com/research/Disclaimer/
Religare Morning Digest
January 31, 2017
Nifty Outlook
VWAP (Expiry till date) Max OI (Call) Max OI (Put)
NIFTY 8565 9000 8400
Markets settled almost flat in a dull trading session today, mirroring global counterparts. Initially, it was the fear of recent immigration curbs from the US which spooked the markets across the globe, including ours. Also, participants preferred to book some profit after the recent surge, safeguarding their investments ahead of Union Budget.
It's a normal pause on expected lines in the index; however, there's no shortage of trading opportunities on stock specific front. And, we feel it might continue tomorrow as well but with a positive tone. Investors should use dips to add quality stocks from auto, private banks and select NBFCs space. At the same time, limiting leveraged positions and keeping them hedged before the event is a good idea.
Sectors to watch
Sector Name Outlook
ENERGY STABLE
METALS STABLE
MEDIA STABLE
News
Religare Super Ideas**
FII & DII Cash Segment (Rs. in Cr.) Trade Stats
Category Amt. MTD YTD
FII 212 -855 14171
DII 483 4045 33546
NO OF CON-
TRACTS
TURNOVER IN CR
IDXFUTS 155473 10930
IDXOPT 1900076 135040
STKFUTS 607304 40647
Derivative Ideas **
Tech Mahindra reported a 31.3% increase in Net Profit to Rs. 844.9 Cr against Rs. 643.4 Cr in the last quarter. Total Income from Operations stood at Rs. 7,557.5 Cr against Rs. 7,167.4 Cr, up by 5.4% on a sequential basis. The company added 12 clients during the quarter, taking total active clients count to 837 in Q3.
HDFC reported an 11.9% rise in standalone Net Profit to Rs. 1,701 Cr against Rs. 1,520.5 Cr in the corresponding quarter last year. Total Income increased 12% to Rs. 8,137.2 Cr as compared to Rs. 7,268.4 Cr in the corresponding quarter last year. Asset quality weakened as Gross NPAs stood at 0.81% for the quarter, against 0.76% previously.
Vodafone confirmed that the company is in talks with AB Group for a merger between Idea and Vodafone India. The companies refused to share further details of the talks. Idea shares closed up 25.6%.
*FII & DII data as on 27th January 2017
Scrip Buy/Sell CMP Initiation
Range SL* Target
BRITANNIA BUY 3145 3140-
3160 3060 3375
LICHSGFIN BUY 559.30 558-565 540 615
**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
TAR-GET
BANKNIFTY
NIFTY
B 2 FEB
19000 PE 40 47
70 142
B 8900 CE 75 43
2 Disclaimer: http://www.religareonline.com/research/Disclaimer/
Religare Morning Digest
January 31, 2017
Religare Super Ideas
Investment Pick - Zee Entertainment Enterprises Ltd
Zee Entertainment Enterprises Ltd reported healthy Q3FY17 numbers amidst demonetisation woes. The company reported 3.4% yoy increase in net sales at Rs
1,639crs. EBITDA shot up by 20% yoy to Rs 515.8crs. EBITDA margin improved by 438bps yoy to 31.5% led by cost optimisation. Net profit for the quarter stood at Rs 250.8crs, a growth of 8.6% over Q3FY16.
The company's strong position across genres, presence in over the top market with Ditto TV, cash rich balance sheet augurs well for the company. We estimate
revenue, EBITDA and PAT to grow at a CAGR of 11.3%, 10% and 12% over FY16-19E respectively. We maintain BUY on the stock with a price target of Rs 592.
Scrip CMP Target Duration Recommendation Price
ZEEL 496.35 592 9-12 Months 498
Event Strategy— We are anticipating VIX to shot
up around 19%-19.50% levels in short term which
will provide a possible move of 250+ points in any
direction. Considering the present scenario, we
suggest doing a option pair strategy in BANKNIFTY
and NIFTY as per levels given below.
Strategy: BUY BANKNIFTY 2 FEB 19000 PE @ 47 &
BUY NIFTY FEB 8900 CE @ 43, NET PREMIUM PAID
90, STOPLOSS AT 70, TARGET 142.
Derivative Ideas
Britannia Industries Limited (BRITANNIA) LIC Housing Finance Ltd (LICHSGFIN)
BRITANNIA registered fresh buying after
consolidation phase that lasted for couple of
trading sessions. This up move was supported by
decent volume, indicating buying interest at
current levels. Hence, we recommend buying with
mentioned levels.
LICHSGFIN gained strength from the previous
trading sessions after consolidating around its long
and mid term averages (200/100) on daily chart. Its
current chart pattern indicates that it is all set for
up move towards higher levels. Hence, we believe
traders can add fresh long positions in the
mentioned range.
3 Disclaimer: http://www.religareonline.com/research/Disclaimer/
Religare Morning Digest
January 31, 2017
Religare Investment Calls
Name of the Company Reco Date Reco Price Target Price Upside % Previous day Closing Price
Tech Mahindra 7-Aug-15 534 600 12.4% 471.6
Kotak Mahindra Bank 19-Aug-15 688 900 30.8% 775.6
Glenmark Pharma 10-Sep-15 1,017 1,370 34.7% 917.2
Dabur India 10-Sep-15 275 325 18.1% 280.2
HUL 10-Sep-15 803 1,050 30.8% 853.6
Bajaj Corp 3-Nov-15 416 500 20.3% 376.1
Britannia Inds 23-Dec-15 2,896 3,600 24.3% 3145.7
Nandan Denim 5-Jan-16 150 183 22.0% 119.3
Atul Auto 22-Mar-16 506 580 14.6% 425.7
Century Plyboards 5-Jul-16 207 271 30.9% 199.8
Greenply Industries 5-Jul-16 248 322 29.8% 266.8
Talwalkars Better Valkue Fitness 22-Aug-16 252 328 30.2% 228.2
Tv Today Network 29-Aug-16 300 388 29.3% 274.7
Jamna Auto 2-Sep-16 217 272 25.3% 183.9
SML Isuzu 26-Sep-16 1,300 1,560 20.0% 1216.4
Swaraj Engines Ltd. 3-Oct-16 1,184 1,535 29.6% 1427.7
Cigniti Technologies Ltd. 5-Oct-16 419 538 28.3% 441.6
Arman Financial Services 14-Oct-16 260 338 30.0% 195.9
Garware Wall Ropes Ltd. 23-Nov-16 567 686 21.0% 602.4
Indo Count Industries Ltd. 30-Nov-16 155 207 33.5% 186.6
VIP Industries Ltd. 30-Nov-16 118 166 41.0% 131.2
Manpasand Beverages 30-Nov-16 626 854 36.4% 626.9
Minda Corporation 06-Dec-16 95 117 23.2% 90.1
Credit Analysis and Research 23-Dec-16 1,355 1,694 25.0% 1419.5
Fiem Industries 26-Dec-16 1,089 1,315 20.8% 1088.7
Castrol India 26-Dec-16 358 483 34.9% 413.2
Wonderla Holidays 26-Dec-16 332 430 29.5% 371.0
Jain Irrigation Systems 26-Dec-16 82 104 26.8% 95.0
Sutlej Textiles 12-Jan-17 812 1,032 27.1% 839.3
LIC Housing Finance 25-Jan-17 526 667 27.0% 559.5
Force Motors 25-Jan-17 4,274 5,210 21.9% 4238.1
Zee Entertainment Enterprises 27-Jan-17 498 592 18.8% 496.4
4 Disclaimer: http://www.religareonline.com/research/Disclaimer/
Religare Morning Digest
January 31, 2017
Result Calendar — January 2017
Sun Mon Tue Wed Thu Fri Sat
29 30
BAJAJ FINSERV LTD.
Bajaj Finance Limited
Dalmia Bharat Sugar and Industries Ltd
DISH TV INDIA LTD.
EMAMI LTD.-$
EMKAY GLOBAL FINANCIAL SERVICES LTD.
ENTERPRISE INTERNATIONAL LTD.
GODREJ CONSUMER PRODUCTS LTD.
GRASIM INDUSTRIES LTD.
HOUSING DEVELOPMENT FINANCE CORP.LTD.
INDRAPRASTHA MEDICAL CORP.LTD.
KITEX GARMENTS LTD.
MAHINDRA LIFESPACE DEVELOP-ERS LTD.
NAVA BHARAT VENTURES LTD.
OMAX AUTOS LTD.
PFIZER LTD.
SAINT-GOBAIN SEKURIT INDIA LTD.
SHREE CEMENT LTD.
SHRIRAM CITY UNION FINANCE LTD.
SIMPLEX MILLS COMPANY LTD.
SHRIRAM ASSET MANAGEMENT CO.LTD.
TECH MAHINDRA LTD.
V-GUARD INDUSTRIES LTD.
ZYDUS WELLNESS LTD.-$
31
BAJAJ AUTO LTD.
BAJAJ HOLDINGS & INVESTMENT LTD.
BPL LTD.
CADILA HEALTHCARE LTD.
CENTURY PLYBOARDS (I) LTD.-$
CENTURY TEXTILES & INDUS-TRIES LTD.
DABUR INDIA LTD.
EMAMI PAPER MILLS LTD.
FIRSTSOURCE SOLUTIONS LTD.
GTL LTD.
HAWKINS COOKERS LTD.-$
HCL INFOSYSTEMS LTD.
ICICI BANK LTD.
IDFC LIMITED
INDIAN OIL CORPORATION LTD.
JSW STEEL LTD.
KANSAI NEROLAC PAINTS LTD.
KEC INTERNATIONAL LTD.
BANK OF MAHARASHTRA
MPHASIS LTD.
OIL AND NATURAL GAS COR-PORATION LTD.
SHOPPERS STOP LTD.
UCO BANK
WELSPUN INDIA LTD.
Wonderla Holidays Ltd
01
APOLLO TYRES LTD.
CUMMINS INDIA LTD.
EICHER MOTORS LTD.
PIDILITE INDUSTRIES LTD.
PTL ENTERPRISES LTD.-$
SHREE RENUKA SUGARS LTD.
STATE BANK OF TRAV-ANCORE
SIRHIND STEEL LTD.
SUVEN LIFE SCIENCES LTD.
TAJGVK HOTELS & RE-SORTS LTD.
Tata Global Beverages Limited
02
AEGIS LOGISTICS LTD.
GABRIEL INDIA LTD.-$
GLENMARK PHARMACEUTICALS LTD.
HSIL LTD.
K.M.SUGAR MILLS LTD.
MARICO LTD.
Sharda Motor Industries Ltd
VIJAYA BANK
WALCHAND PEOPLEFIRST LTD.
Z.F.STEERING GEAR (INDIA) LTD.-$
03
ABAN OFFSHORE LTD.
Aditya Birla Fashion and Retail Ltd
ACC LTD.
DALMIA BHARAT LTD.
Gulf Oil Lubricants India Ltd
Manpasand Beverages Ltd
MCLEOD RUSSEL INDIA LTD.
MRF LTD.
Quick Heal Technologies Ltd
TORRENT PHARMACEUTICALS LTD.
Zee Media Corporation Limited
04
DIVI'S LABORATORIES LTD.
DR.REDDY'S LABORATORIES LTD.
FINOLEX INDUSTRIES LTD.
J.K.CEMENT LTD.
SHILCHAR TECHNOLOGIES LTD.
VINATI ORGANICS LTD.-$
YUKEN INDIA LTD.-$
5 Disclaimer: http://www.religareonline.com/research/Disclaimer/
Religare Morning Digest
January 31, 2017
Corporate Action Calendar — January 2017 (Cash Dividend)
Sun Mon Tue Wed Thu Fri Sat
29 30
31
Siemens Ltd
Persistent Systems Ltd
DB Corp Ltd
01
HCL Technologies Ltd
GMM Pfaudler Ltd
Rane Brake Lining Ltd
02
Zensar Technologies Ltd
Bharat Electronics Ltd
VRL Logistics Ltd
Gandhi Special Tubes Ltd
Wipro Ltd
IIFL Holdings Ltd
IRB Infrastructure Developers Ltd
GAIL India Ltd
Rane Madras Ltd
JM Financial Ltd
Ashoka Buildcon Ltd
03 04
Corporate Action Calendar — January 2017 (Stock Buyback)
Sun Mon Tue Wed Thu Fri Sat
29 30
31 01 02
Hexaware Technologies Ltd
03 04
Corporate Action Calendar — January 2017 (Stock Split)
Sun Mon Tue Wed Thu Fri Sat
29 30
Ushdev International Ltd
31 01 02
Khemani Distributors & Marketing Ltd
Kallam Spinning Mills Ltd
Stellant Securities India Ltd
Rasoi Ltd
03 04
6 Disclaimer: http://www.religareonline.com/research/Disclaimer/
Religare Morning Digest
January 31, 2017
Corporate Action Calendar — January 2017 (Stock Dividend)
Sun Mon Tue Wed Thu Fri Sat
29 30
31
01
02
03
Ambition Mica Ltd
04
Corporate Action Calendar — January 2017 (Acquisition)
Date Target Company Acquirer Company
1/31/2017 BSS Microfinance Pvt Ltd Kotak Mahindra Bank Ltd
1/31/2017 OFD Holding BV Mahindra & Mahindra Ltd
1/31/2017 Pricol Ltd Altran Technologies SA
1/31/2017 Keystone Business Solutions Pvt Ltd TeamLease Services Ltd
2/1/2017 Vantage Corporate Services Ltd Private Investor
2/3/2017 Generic Engineering Construction and Projects Ltd Multiple acquirers
Economic Calendar — January 2017
Sun Mon Tue Wed Thu Fri Sat
29 30
31
Fiscal Deficit INR Crore
GDP Annual Estimate YoY
Eight Infrastructure Industries
01
Nikkei India PMI Mfg
02
03
Nikkei India PMI Services
Nikkei India PMI Composite
04
7 Disclaimer: http://www.religareonline.com/research/Disclaimer/
Religare Morning Digest
January 31, 2017
Current Portfolio and Performance Summary as on 30th January’17
Stock Sector Entry Date Weight Reco price (`) CMP (`)
Bajaj Corp Consumer Goods May 13, 2016 8.9% 393 376
Magma Fincorp Financial Services June 30, 2016 8.8% 109 100
Apollo Hospitals
Enterprises Healthcare Services July 29, 2016 9.4% 1,362 1,240
Emami Consumer Goods August 3, 2016 9.0% 1,151 1,013
Castrol India Energy August 5, 2016 10.0% 425 413
Punjab National Bank Financial Services October 3, 2016 10.1% 143 138
Minda Corporation Auto Ancillaries October 10, 2016 9.0% 109 90
Pidilite Industries Chemicals November 17, 2016 10.7% 617 678
Cash 24.1%
Total Total 100%
8 Disclaimer: http://www.religareonline.com/research/Disclaimer/
Religare Morning Digest
January 31, 2017
Historical Performance as on 30th January’17
Performance Matrix 1-Month 3-Month 6-Month 1-Year Since Inception
Religare Alpha 7.8% -8.0% -2.3% 13.9% 24.4%
Nifty 5.5% -0.1% 0.1% 14.1% 9.5%
Outperformance 2.4% -7.9% -2.4% -0.3% 14.9%
9 Disclaimer: http://www.religareonline.com/research/Disclaimer/
Religare Morning Digest
January 31, 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.
10 Disclaimer: http://www.religareonline.com/research/Disclaimer/
Religare Morning Digest
January 31, 2017
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]
Siji A Philip [email protected]
Vipin Kumar [email protected]
Team Members
11 Disclaimer: http://www.religareonline.com/research/Disclaimer/
Religare Morning Digest
January 31, 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.