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Religare Morning Digest

April 29, 2016

Nifty Outlook

After two days of advance, Nifty slipped over one and a half percent on Thursday and

concluded the F&O expiry on weak note. Feeble global cues mainly from the Japanese stock

markets pushed our markets lower as it fell almost vertically post the announcement of

unchanged stance on interest rate by the Bank of Japan in early trades. In addition,

cautiousness among the participants due to derivative expiry further added to the

negativity. Barring Realty, all the sectoral indices fell in line with benchmark and ended

lower.

This fall has faded away the hopes of decisive breakout in Nifty above 8000, at least in the

near future. Having said that, the uptrend is still intact and we’ll now see extension of

prevailing consolidation phase in index. Amid all, traders will continue to find opportunities

on both sides of markets so they should maintain stock specific trading approach.

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

NIFTY 7960 8200 7700

Sectors to watch

Sector Name Outlook

CEMENT STABLE

OIL N GAS STABLE

BANKS STABLE

News Religare Super Ideas**

FII & DII activity (Rs. in Cr.) Trade Stats

Category Amt MTD YTD

FII 411 3139 3139

DII -295 -1622 -1622

NO OF CON-

TRACTS

TURNOVER IN CR

IDXFUTS 634413 35994

IDXOPT 10934251 634755

STKFUTS 1541497 77475

TTK Prestige has announced its entry into the home cleaning market.

Dabur India consolidated net profit rose 16.6% to Rs 331.90 crore on 10.9% growth in net

sales to Rs 2157.30 crore in Q4 March 2016 over Q4 March 2015.

ACC net profit declined 3.48% to Rs 232.19 crore in the quarter ended March 2016 as against

Rs 240.55 crore during the previous quarter ended March 2015.

Derivative Ideas **

Instrument B/S Lot INITIATION

RANGE SL TARGET

NIFTY MAY

7700 PE BUY 75 55 40 85

*FII & DII data as on 27th April 2016

Scrip Buy/Sell CMP Initiation

Range SL Target

NCC BUY 79.15 78.5-80 76 88

UNIONBANK SELL MAY

FUT 129.80 131-132 136 120

**Please note that the given technical and derivative recommendations are

"valid for taking position" only on recommended date and in the given range.



April 29, 2016

Religare Super Ideas

Investment Pick - Atul Auto Ltd

ATULAUTO

Atul Auto is one of the fastest growing three wheeler companies in India. It caters to diverse group of customers in Cargo and Passenger segment with 0.35

tonnes and 0.5 tonnes capacity platform. The company has strong distribution network of 200 primary dealers and 120 secondary dealers across India.

Net sales and Net profit have grown @ CAGR of 32.7% and 55% respectively from FY10 to FY15. The company has stable dividend payout history, strong cash

flows and healthy return ratios. The management has ambitious plan to sell 1,00,000 vehicles annually in next 3-5 years.

Scrip CMP Target Duration Recommendation Price

ATULAUTO 519.70 580 9-12 Months 506

NIFTY added 20% open interest as fresh short

positions. It has witnessed 69% rollover into May

series. Put buying was seen at 7700 strike.

Strategy: BUY NIFTY MAY 7700 PE @ 55, SL 40,

TARGET 85.

Derivative Ideas

NCC Limited (NCC) Union Bank of India (UNIONBANK)

NCC witnessed breakout from inverted Head and

Shoulder formation on daily chart, it is a bullish

reversal pattern. Yesterday, it corrected over 3%

due to sell-off in broader markets. This dip can be

utilized as fresh buying opportunity as its over all

trend is positive.

UNIONBANK is struggling to cross and sustain

above its 100 EMA resistance barrier. Its current

chart pattern clearly indicates it is in down trend

with no meaningful sign of recovery in near term.

Hence, it makes sense creating fresh short

positions at current levels.



April 29, 2016

Corporate Action Calendar— April 2016 (Cash Dividend)

Sun Mon Tue Wed Thu Fri Sat

24 25 26

VESUVIUS INDIA LTD.

27

CASTROL INDIA LTD.

Huhtamaki PPL Limited

28

CRISIL LTD.

29 30

Economic Calendar - April 2016


24 25 26 27 28 29

Infrastructure Output (YoY)

30

Result Calendar— April 2016


24 25

ABB India Limited

COROMANDEL ENGINEERING

DELTA CORP LTD.

HIMALYA INTERNATIONAL

LTD.

INDIABULLS REAL ESTATE

LTD.

STATE BANK OF

TRAVANCORE

TATA SPONGE IRON LTD.

Indiabulls Housing Finance

Ltd

ULTRATECH CEMENT LTD.

WELSPUN INDIA LTD.

WELCURE DRUGS &

PHARMACEUTICALS LTD.

26

ALEMBIC LTD.

AGRO TECH FOODS LTD.

AXIS BANK LTD.

BERVIN INVESTMENT &

LEASING LTD.

BIOCON LTD.

CAPITAL TRUST LTD.

DYNACONS SYSTEMS &

SOLUTIONS LTD.

GTL INFRASTRUCTURE LTD.

IDFC Bank Ltd

BHARTI INFRATEL LTD.

MARUTI SUZUKI INDIA LTD.

STATE BANK OF MYSORE

RALLIS INDIA LTD.

RAYMOND LTD.

27

ABHISHEK CORPORATION

LTD.

ALEMBIC PHARMA

CEUTICALS LTD.

BHARTI AIRTEL LTD.

CEAT LTD.

COROMANDEL

INTERNATIONAL LTD.

DHRUV ESTATES LTD.

ELECON ENGINEERING CO.LTD.

EPC INDUSTRIE LTD.

EXIDE INDUSTRIES LTD.

GATI LTD.

INOX LEISURE LTD.

JSW Energy Ltd

28

ACC LTD.

AMBUJA CEMENTS LTD.

DABUR INDIA LTD.

ESSEL PROPACK LTD.

GRANULES INDIA LTD.

GTL LTD.

HCL TECHNOLOGIES LTD.

IDEA CELLULAR LTD.

KAJARIA CERAMICS LTD.

NIRLON LTD.

TATA ELXSI LTD.

Vedanta Limited

29

AJANTA PHARMA LTD.

Cholamandalam Investment and Finance Company Ltd

EVEREST INDUSTRIES LTD.

FORCE MOTORS LTD.

GIC HOUSING FINANCE LTD.

HINDUSTAN FOODS LTD.

ICICI BANK LTD.

IDFC LIMITED

Sanofi India Ltd

STATE BANK OF BIKANER &

JAIPUR

SHRIRAM TRANSPORT

FINANCE CO.LTD.

UPL Limited

30

FEDERAL BANK LTD.

NAVKAR BUILDERS LTD.

NEPC INDIA LTD.

NEPC TEXTILES LTD.

SHILP GRAVURES LTD

SOUTHERN LATEX LTD.

ARCHANA SOFTWARE LTD.

TEESTA AGRO INDUSTRIES

LTD

UBE INDUSTRIES LTD.

http://www.fxstreet.com/economic-calendar/event.aspx?id=dd75b233-64c1-45fd-9120-fa9f20a02c21



April 29, 2016

Market Snapshot

Sectoral Indices Performance

Index Closing % Change % MTD % YTD

NIFTY Auto 8,318 -1.91% 2.8% 0.8%

NIFTY Bank 16,717 -0.92% 3.6% -1.2%

NIFTY Energy 8,411 -2.31% -0.2% -2.0%

Nifty Financial Services 6,697 -1.60% 1.8% -5.1%

NIFTY FMCG 19,668 -2.35% -0.5% -2.6%

NIFTY IT 11,287 -1.45% -0.2% 0.7%

NIFTY Media 2,385 -0.71% 2.8% -9.4%

NIFTY Metal 2,032 -2.33% 6.2% 11.2%

NIFTY Pharma 11,179 -0.81% 1.7% -6.6%

NIFTY PSU Bank 2,483 -1.69% 1.4% -13.3%

NIFTY Realty 173 1.68% 10.4% 0.1%

Top Gainers - Nifty

Stock CMP (INR) % Chg % MTD % YTD

YESBANK 945.55 3.28% 9.3% 30.3%

IDEA 126.50 1.20% 14.8% -11.9%

EICHERMOT 20,292.95 0.89% 5.8% 20.4%

TCS 2,527.75 0.66% 0.3% 3.7%

ACC 1,437.85 0.58% 4.0% 5.7%

Top Losers - Nifty

Stock CMP (INR) % Chg % MTD % YTD

HINDALCO 96.90 -4.77% 10.2% 14.3%

HCLTECH 799.90 -4.50% -1.7% -6.5%

HDFC 1,085.55 -3.21% -1.8% -14.1%

ITC 322.90 -3.19% -1.6% -1.5%

M&M 1,344.50 -2.91% 11.1% 5.7%

Bulk Deals - NSE

Security Name Client Name Buy/Sell Quantity Price Value (in Cr.)

Eveready Industries India AMANSA HOLDINGS PRIVATE LTD BUY 500000 250 12.50

Aban Offshore Ltd. BRIGHT STAR EQUITIES PRIVATE LIMITED BUY 302400 205.68 6.22

Aban Offshore Ltd. BRIGHT STAR EQUITIES PRIVATE LIMITED SELL 257816 213.78 5.51

DQ Entertainment Int Ltd UNO METALS LTD BUY 1127258 24.14 2.72

DQ Entertainment Int Ltd AKG FINVEST LTD SELL 1125000 24.14 2.72

Rushil Decor Limited CHANDARANA SHARES & STOCKS PRI- SELL 74766 279.64 2.09

Rushil Decor Limited CHANDARANA SHARES & STOCKS PRI- BUY 74766 279.41 2.09

Diamond Power Infra Ltd GAURAV DOSHI SELL 298648 36.67 1.10

Diamond Power Infra Ltd GAURAV DOSHI BUY 243648 37.31 0.91

Rama Steel Tubes Limited YAMINI INVESTMENTS COMPANY LIMITED SELL 94200 92.2 0.87

Delivery Spurt stocks

Stock Name Day's del. Vol. Del. Vol. Price

Shrenuj & Co. 424,298 4470% -4.04%

Jubilant Food. 2,731,522 2280% -10.64%

Godfrey Phillips 158,394 2021% -3.57%

NHPC Ltd 24,766,106 1251% -2.09%

T B Z 374,902 807% -2.37%

G N F C 561,329 772% 0.21%

Indbull.RealEst. 17,503,951 748% 11.70%

Maruti Suzuki 900,824 658% -2.89%

Supreme Pet- 185,741 594% -2.43%

Oberoi Realty 1,350,055 488% -1.07%

*Bulk deals data as on April 27, 2016



April 29, 2016

Current Portfolio and Performance Summary as on 28th April’16

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

HCL Technologies IT Oct 29, 2015 9.0% 932* 800

Dewan Housing Finance

Corporation Financial Services Feb 10, 2016 15.2% 193* 200

Maruti Suzuki India Auto Mar 14, 2016 9.7% 3,663 3,748

Dabur India Consumer Goods Mar 14, 2016 10.2% 251 270

MT Educare Services Mar 14, 2016 10.1% 159 170

Cera Sanitaryware Ceramics Apr 13, 2016 10.9% 1,780 1,792

Infosys IT Apr 21, 2016 11.1% 1,220 1,209

Heritage Foods Consumer Goods Apr 25, 2016 10.0% 515 513

Cash Cash 13.8%

Total Total 100%

*Weighted average price

*4.5% HCL Tech was bought at 983

*7.5% DHFL was bought at 237



April 29, 2016

Historical Performance as on 28th April’16

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

Religare Alpha 5.72% 4.03% -3.48% 1.60% 12.21%

Nifty 3.05% 5.51% -2.71% -4.76% -0.47%

Outperformance 2.68% -1.47% -0.77% 6.36% 12.68%



April 29, 2016

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 29, 2016

Hitesh Agrawal [email protected]

Ajay Kumar Srivastava [email protected]

Ajay Pasari, CFA [email protected]

Ajit Mishra [email protected]

Ashish Bansal [email protected]

Gaurav Sharma [email protected]

Swati Saxena [email protected]

Manoj M Vayalar [email protected]

Vipin Kumar [email protected]

Team Members



April 29, 2016

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[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]

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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

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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

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Serial Question of question which the signing RA needs to make a separate declaration / answer

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religare morning digest · religare morning digest ... near future. having said that, the uptrend...

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