religare morning digest morning digest january 8, 2018

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Religare Morning Digest

January 8, 2018

Nifty Outlook

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

NIFTY 10520 11000 10400

Markets gained over half a percent and settled at new record high, mainly in reaction to the firm local cues. Global markets gave a head start which further boosted on the report by the rating agency, Fitch, wherein they stated India will be fastest growing economy over the next five years. Almost all the sectoral indices participated in the rally wherein midcap and smallcap counters attracted noticeable buying interest.

Banking is playing key role in the recent up move and should hold this bias ahead as well. We still prefer private banks over the PSU pack and suggest accumulating them on dips. Besides, we feel select counters from auto, financials and FMCG space are set for a fresh run.

Sectors to watch

Sector Name Outlook

AUTO STABLE

ENERGY STABLE

FMCG STABLE

News

Religare Super Ideas**

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

Category Amt.** MTD FYTD

FII 212 1157 6675

DII** 325 -1179 82295

NO OF CON-

TRACTS

TURNOVER IN CR

IDXFUTS 148655 12997

IDXOPT 2722084 245957

STKFUTS 845662 65495

Derivative Ideas **

V-Mart Retail announced that the company has opened a new fashion store in state of UP. This takes the tally of store in UP to 52 fashion stores and 17 composite stores. With this the total stores number has increased to 168 comprising of 37 composite stores and 131 fashion stores.

Thermal products manufacturer Subros surged 20% after the company announced that it has commenced supplies of Cab air conditioning systems and blowers for two categories of trucks since 1 January 2018.

Lupin announced the launch of its Flucytosine capsules USP, 250 mg and 500 mg having received an approval from the USFDA. Novel's Flucytosine capsules are AB rated generic equivalent of Valeant Pharmaceuticals International Inc's ANCOBON Capsules. The drug is indicated for the treatment of serious infections caused by susceptible strains of Candida and/or Cryptococcus.

**Provisional data as on 4th January 2018

Scrip Buy/Sell CMP Initiation

Range SL* Target

CAPF BUY 727 715-720 705 750

JUSTDIAL BUY 551.25 535-545 520 600

Instrument B/S Lot INITIATION

RANGE SL

TAR-GET

PVR BUY

FUTS 400

1420-

1425 1385 1500

**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.



January 8, 2018

Investment Pick - Time Technoplast

Time Technoplast has a dominant position in the rigid packaging materials industry in 9 countries across South East Asia and Middle East. It is a leading

manufacturer of polymer products like drums, barrels, jerry cans and pails used in various packaging requirements. It caters to varied sectors like chemicals, paints & pigments, food & beverage, petroleum, industrial coatings, agricultural, etc.

Time Technoplast is likely to report superior earnings growth driven by product portfolio with higher room for market penetration, market leadership, focus on

innovation and value-added products. We expect Revenue and Net profit to increase at CAGR of 16% and 27.2% respectively over FY17-20E. We recommend a Buy on the stock with a target price of Rs. 264.

Scrip CMP Target Duration Recommendation Price

TIMETECHNO 215.40 264 9-12 Months 206

PVR added around 10% in open interest as long

buildup was seen in it with some delivery based

buying in previous session. Current chart pattern

too indicate fresh surge in its price. We suggest

buying PVR Futs as per below levels.

Strategy: Buy PVR Futs between 1420-1425,

SL– 1385, TGT– 1500.

Derivative Ideas Religare Super Ideas

Capital First Limited (CAPF) Just Dial Limited ( JUSTDIAL)

CAPF has witnessed a reversal from a declining

trend and looks upbeat to regain momentum. The

indications from the broader front too is

supportive. We suggest traders to go long as per

the mentioned levels.

JUSTDIAL has witnessed a fresh breakout from a

consolidation phase today i.e. Jan 5 and likely surge

strongly in near future. Any dip in the given range

can be utilized for initiating fresh longs.



January 8, 2018

Religare Investment Calls

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

Indo Count Industries Ltd. 17-May-17 198 240 21.2% 121.1

SML Isuzu 25-May-17 1,247 1,525 22.3% 928.0

CRISIL 01-Aug-17 1,858 2,419 30.2% 1,919.3

LIC Housing Finance 09-Aug-17 681 748 9.8% 571.3

Eicher Motors Ltd 09-Aug-17 31,630 40,467 27.9% 29,237.0

Wonderla Holidays 17-Aug-17 339 430 26.8% 391.6

The Byke Hospitality 17-Aug-17 195 242 24.1% 179.2

Tata Communications 18-Sept-17 708 822 16.1% 672.2

Century Plyboards 07-Nov-17 294 312 6.1% 344.3

Kajaria Ceramics Ltd. 09-Nov-17 690 900 30.4% 750.9

Srikalahasthi Pipes Ltd 10-Nov-17 362 457 26.3% 401.7

Force Motors 13-Nov-17 3,328 4,642 39.5% 3,548.0

Castrol India Ltd 15-Nov-17 198 223 12.5% 195.0

Mold-Tek Packaging Limited 15-Nov-17 316 374 18.4% 328.9

Sutlej Textiles 17-Nov-17 96 116 21.2% 103.3

Swaraj Engines Ltd 21-Nov-17 1,888 2,252 19.3% 2,172.8

Bharat Electronics Ltd. 22-Nov-17 177 217 22.6% 182.3

Asian Granito India Ltd. 29-Nov-17 506 642 26.9% 571.4

Nilkamal Ltd. 29-Nov-17 1,791 2,097 17.1% 2,037.5

Garware Wall Ropes Ltd 1-Dec-17 914 1,083 18.4% 927.3

Fiem Industries 6-Dec-17 915 1,315 43.7% 1,031.1

Talwalkars Better Value Fitness 20-Dec-17 317 346 9.1% 300.1

Time Technoplast 28-Dec-17 206 264 28.2% 215.4



January 8, 2018

Corporate Action Calendar — January 2018 (Stock Buyback)

Sun Mon Tue Wed Thu Fri Sat

07 08

Lovable Lingerie Ltd

09 10 11 12 13

Corporate Action Calendar — January 2018 (Acquisition)

Date Target Company Acquirer Company

1/10/2018 Bloom Industries Ltd Private Investor

1/10/2018 Lark Trading & Finance Ltd Private Investor

1/11/2018 Polo Hotels Ltd Private Investor

Economic Calendar — January 2018


07 08 09

Local Car Sales

10

Trade Balance

Exports YoY

Imports YoY

11 12

CPI YoY

Industrial Production YoY

13

Corporate Action Calendar — January 2018 (Stock Dividend)


07 08

09

Dhanuka Realty Ltd

10 11

Bil Energy Systems Ltd

VKJ Infradevelopers Ltd

12 13



January 8, 2018

Current Portfolio and Performance Summary as on 5th January’18

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

Amara Raja Batteries Auto March 22, 2017 10.1% 868 862

RBL Bank Financial Services July 11, 2017 9.1% 532 540

Muthoot Finance Financial Services July 26, 2017 9.1% 482 472

Talwalkars Better value

Fitness Health Fitness July 27, 2017 9.4% 302 300

Va Tech Wabag Infrastructure August 16, 2017 9.0% 636 631

Can Fin Homes Financial Services September 19, 2017 9.0% 572 470

CARE Financial Services September 20, 2017 8.9% 1,493 1,328

Tejas Networks Telecom Services November 3, 2017 10.5% 387 435

Yes Bank Financial Services January 5, 2018 10.2% 322 333

Godfrey Phillips India Consumer Goods January 5, 2018 9.8% 1,022 1,019

Cash 4.8%

Total 100%



January 8, 2018

Historical Performance as on 5th January’18

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

Religare Alpha 10.8% 9.4% 24.4% 47.1%

Nifty 6.8% 9.2% 27.6% 33.9%

Outperformance 4.1% 0.2% -3.2% 13.1%



January 8, 2018

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.



January 8, 2018

Hitesh Agrawal [email protected]

Ajay Pasari, CFA [email protected]

Ajit Mishra [email protected]

Manoj M Vayalar [email protected]

Mehernosh Khurshed Panthaki [email protected]

Nirvi Ashar [email protected]

Rohit Khatri [email protected]

Suhanee Shome [email protected]

Team Members



January 8, 2018

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religare morning digest morning digest january 8, 2018

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