religare morning · pdf filewe recommend a buy on the stock with a target price of rs. 483....

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Religare Morning Digest

February 5, 2018

Nifty Outlook

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

NIFTY 10900 11500 10500

It was complete mayhem in equity markets as Nifty lost over two percent and ended around the day’s low. It opened gap down and profit taking kept the pressure intact till the end. This fall was largely attributed to the recent announcement of long term capital gains (LTCG) tax. Also, decline in world markets further worsened the situation. In line with the benchmark index, selling was witnessed across the sectors and similar trend was witnessed on broader front too.

Markets may lose momentum after this fall, at least in short run and now Nifty may find support around 10600. More than the benchmark, correction in the broader market is the real dampener as mostly traders prefer midcap and smallcap counters over index majors for trading. We advise waiting for some stability before initiating fresh trades and keeping the existing positions hedged.

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 1100 1100 16184

DII** -359 -359 83515

NO OF CON-

TRACTS

TURNOVER IN CR

IDXFUTS 366454 32658

IDXOPT 6032078 555536

STKFUTS 1128065 81485

Derivative Ideas **

Hindalco Industries reported standalone profit growth of 17.2% yoy at Rs 375cr for December quarter, driven by copper business but hit by one-time loss. Profit for quarter ended December 2016 stood at Rs 320cr. One-time loss of Rs 115.3cr was a provision based on a judgment of the Supreme Court on mining regulations. Standalone revenue during the quarter grew by 18.4% to Rs 11,023cr compared to Rs 9,314cr in year-ago, led by macro factors, volumes and by-product realisation.

Bajaj Auto reported net profit for the December quarter at Rs 952.4cr against Rs 924.6cr yoy. The company’s revenue rose 26% at Rs 6,369.2cr against Rs 5,067cr yoy. At the operating level, EBITDA rose to Rs 1,231.4cr against Rs 1,043.9cr. The operating margin is reported at 19.3% against 20.6% in Q3FY17.

Hero MotoCorp sold 641,501 units of two‐wheelers in January 2018, as against 487,088 units in the corresponding month of the previous year (January 2017), thus registering a strong sales growth of 31.7%. The robust double digit growth in overall two‐wheeler sales has been driven by very strong growth in both Scooters and Motorcycles.

**Provisional data as on 1st February 2018

Scrip Buy/Sell CMP Initiation

Range SL* Target

HINDALCO BUY

240PE 5.95 4-5 2 10

SBIN BUY

280PE 5.25 4-5 1.5 12

Instrument B/S Lot INITIATION

RANGE SL

TAR-GET

GAIL BUY

460PE 2000 9-10 5 20

**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.



February 5, 2018

Investment Pick - Manpasand Beverages

Manpasand Beverages reported steady Q3FY18 result with Net sales and Net profit growth of 39.7% and 65.4% on yoy basis. Operational margin was impacted

by surge in material cost and higher promotional expenses; however PAT improvement was supported by lower depreciation cost.

Manpasand Beverages is on track for doubling its capacities. We expect demand for its products to remain strong due to diversified product basket (Mango Sip,

Fruits Up, Siznal, Packaged drinking water, etc.), aggressive expansion plans, huge spend on advertising and branding, quality products at affordable prices and increasing distribution network. We recommend a Buy on the stock with a target price of Rs. 483.

Scrip CMP Target Duration Recommendation Price

MANPASAND 376.35 483 9-12 Months 378

GAIL shed around 3.26% in open interest as long

unwinding was seen in it in previous session.

Current chart pattern too indicate further decline in

its price. We suggest buying GAIL options as per

below levels.

Strategy: Buy GAIL 460PE between 9-10, SL– 5,

TGT– 20

Derivative Ideas Religare Super Ideas

Hindalco Industries Limited (HINDALCO) State Bank of India (SBIN)

After re-testing its record high, HINDALCO has

been witnessing profit taking for almost last one

months or so on . Today i.e. on Feb 2, it has

witnessed a fresh breakdown from a congestion

zone. We, therefore, advise traders to initiate fresh

shorts through put option in the given range.

After a decent recovery from the support zone

around 240, SBIN failed to hold those gains and

witnessed stiff resistance around 345 level. It made

few attempts of late but in vain. Keeping its chart

pattern and overall sector performance, we suggest

traders to initiate fresh short positions through put

option.



February 5, 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% 97.2

SML Isuzu 25-May-17 1,247 1,525 22.3% 828.5

CRISIL 01-Aug-17 1,858 2,419 30.2% 1,953.3

LIC Housing Finance 09-Aug-17 681 748 9.8% 511.9

Eicher Motors Ltd 09-Aug-17 31,630 40,467 27.9% 27,811.8

Wonderla Holidays 17-Aug-17 339 430 26.8% 374.2

The Byke Hospitality 17-Aug-17 195 242 24.1% 178.8

Tata Communications 18-Sept-17 708 822 16.1% 616.9

Century Plyboards 07-Nov-17 294 312 6.1% 309.7

Kajaria Ceramics Ltd. 09-Nov-17 690 900 30.4% 612.8

Srikalahasthi Pipes Ltd 10-Nov-17 362 457 26.3% 362.0

Castrol India Ltd 15-Nov-17 198 223 12.5% 179.7

Sutlej Textiles 17-Nov-17 96 116 21.2% 95.1

Bharat Electronics Ltd. 22-Nov-17 177 217 22.6% 151.9

Asian Granito India Ltd. 29-Nov-17 506 642 26.9% 534.0

Garware Wall Ropes Ltd 1-Dec-17 914 1,083 18.4% 973.3

Fiem Industries 6-Dec-17 915 1,315 43.7% 887.9

Time Technoplast 28-Dec-17 206 264 28.2% 176.9

GNA Axles 22-Jan-18 462 563 22.0% 411.8

Force Motors 25-Jan-18 3,250 4,197 29.1% 3,014.1

Swaraj Engines Ltd 25-Jan-18 1,989 2,426 22.0% 1,924.6

Nilkamal Ltd. 30-Jan-18 1,837 2,231 21.5% 1,719.1

APL Apollo Tubes 31-Jan-18 2,255 2,559 13.5% 2,124.1

Navneet Education 31-Jan-18 142 188 32.4% 144.8

S Chand & Company 31-Jan-18 471 640 35.9% 453.7

Symphony Ltd. 31-Jan-18 1,815 2,160 19.0% 1,774.8

Manpasand Beverages 1-Feb-18 378 483 27.8% 376.4



February 5, 2018

Economic Calendar — February 2018

Sun Mon Tue Wed Thu Fri Sat

04 05

Nikkei India PMI Services

Nikkei India PMI Composite

06 07

RBI Repurchase Rate

RBI Reverse Repo Rate

RBI Cash Reserve Ratio

08 09 10

Corporate Action Calendar — February 2018 (Stock Buyback)


04 05 06 07

Technocraft Industries India

08 09 10

Corporate Action Calendar — February 2018 (Cash Dividend)


04 05

Trident Ltd/India

HIL Ltd

Motilal Oswal Financial

Services Ltd

06

Godrej Consumer Products

Suven Life Sciences Ltd

Kiocl Ltd

Container Corp Of India Ltd

Container Corp Of India Ltd

VIP Industries Ltd

07

TCI Express Ltd

NTPC Ltd

IIFL Holdings Ltd

Wendt India Ltd

Rane Brake Lining Ltd

Security & Intelligence

Services India Ltd

08

Dhampur Sugar Mills Ltd

Control Print Ltd

Power Grid Corp of India Ltd

Power Grid Corp of India Ltd

Selan Exploration Technology Ltd

India Nippon Electricals Ltd

Indian Oil Corp Ltd

Bharat Electronics Ltd

09

Mold-Tek Packaging Ltd

Aegis Logistics Ltd

Info Edge India Ltd

Cholamandalam Investment and

Finance Co Ltd

Care Ratings Ltd

Alicon Castalloy Ltd

MRF Ltd

10

Corporate Action Calendar — February 2018 (Stock Split)


04 05 06 07

08 09

SRS Finance Ltd

10



February 5, 2018

Result Calendar — February 2018


04 05

BOSCH LTD.

CENTURY PLYBOARDS (I)

Cochin Shipyard Ltd

COLGATE-PALMOLIVE

(INDIA) LTD.

EVEREADY INDUSTRIES INDIA LTD.

JSW Holdings Limited

POLYCHEM LTD.

Sheela Foam Ltd

TATA MOTORS LTD.

Tata Motors Ltd - DVR

KHATAU EXIM LTD.

06

APOLLO TYRES LTD.

BERGER PAINTS INDIA LTD.

CASTROL INDIA LTD.

CENTURY ENKA LTD.

DISH TV INDIA LTD.

ESCORTS FINANCE LTD.

Future Retail Ltd

GUJARAT STATE

FERTILIZERS & CHEMICALS

Gulf Oil Lubricants India Ltd

Heritage Foods Limited

HERO MOTOCORP LTD.

JSW Energy Ltd

KEC INTERNATIONAL LTD.

LUPIN LTD.

BANK OF MAHARASHTRA

NELCO LTD.

PUNJAB NATIONAL BANK

The Ramco Cements

SIEMENS LTD.

SPICEJET LTD.

TATA CHEMICALS LTD.

THERMAX LTD.

07

APTECH LTD.

AUROBINDO PHARMA

BAJAJ STEEL INDUSTRIES

BEML LTD.

CIPLA LTD.

CITY UNION BANK LTD.

DALMIA BHARAT LTD.

Dixon Technologies (India)

Ltd

EICHER MOTORS LTD.

EXCEL INDUSTRIES LTD.

GREENPLY INDUSTRIES

LTD.

HEXAWARE TECHNOLOGIES LTD.

INDRAPRASTHA GAS LTD.

IPCA LABORATORIES LTD.

KAVERI SEED COMPANY

Majesco Ltd

Quick Heal Technologies

SRF LTD.

TOURISM FINANCE

CORPORATION OF INDIA

TORRENT POWER LTD.

VOLTAS LTD.

ZYDUS WELLNESS LTD.-$

08

ACC LTD.

ANDHRA BANK

CESC LTD.

Coffee Day Enterprises Ltd

Dhanlaxmi Bank Limited

GLENMARK PHARMACEUTICALS LTD.

INDIAN HUME PIPE CO.LTD.

MANAPPURAM FINANCE LTD.

Parag Milk Foods Ltd

PETRONET LNG LTD.

PTC Industries Ltd

RELIANCE CAPITAL LTD.

RELIGARE ENTERPRISES LTD.

SUTLEJ TEXTILES &

INDUSTRIES LTD.

Talwalkars Better Value Fitness

TATA COMMUNICATIONS LTD.

TATIA GLOBAL VENNTURE

TORRENT PHARMACEUTICALS

TV TODAY NETWORK LTD.

09

Aditya Birla Capital Ltd

Alkem Laboratories Ltd

AVANTI FEEDS LTD.-$

BANK OF BARODA

BATA INDIA LTD.

BHARAT PETROLEUM CORPORATION LTD.

CENTRAL BANK OF INDIA

HINDUSTAN PETROLEUM

CORPORATION LTD.

INDIA CEMENTS LTD.

MAHINDRA & MAHINDRA

LTD.

STATE BANK OF INDIA

S Chand and Company Ltd

SML ISUZU LIMITED

SUN TV NETWORK LTD.

SYNDICATE BANK

TATA STEEL LTD.

10

ASIAN GRANITO INDIA LTD.

COAL INDIA LTD.

SURAJ PRODUCTS LTD.

Surana Solar Limited

Sword-Edge Commercials

TOHEAL PHARMACHEM

Trimurthi Ltd

UNJHA FORMULATIONS

VCCL LTD.

VIKAS WSP LTD.

VINTRON INFORMATICS

WEP SOLUTIONS LTD.

W.H.BRADY & CO.LTD.

Wonderla Holidays Ltd

YASH PAPERS LTD.-$



February 5, 2018

Current Portfolio and Performance Summary as on 2nd February’18

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

Amara Raja Batteries Auto March 22, 2017 9.5% 868 768

RBL Bank Financial Services July 11, 2017 8.5% 532 483

Muthoot Finance Financial Services July 26, 2017 8.2% 482 402

Va Tech Wabag Infrastructure August 16, 2017 8.5% 636 564

Can Fin Homes Financial Services September 19, 2017 8.6% 572 427

CARE Financial Services September 20, 2017 9.4% 1,493 1,328

Yes Bank Financial Services January 5, 2018 11.3% 322 349

Godfrey Phillips India Consumer Goods January 5, 2018 9.1% 1,022 891

CCL Products Beverages January 9, 2018 9.5% 306 276

Cash 17.5%

Total 100%



February 5, 2018

Historical Performance as on 2nd February’18

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

Religare Alpha 1.6% 2.5% 10.3% 39.7%

Nifty 3.2% 6.9% 23.2% 36.5%

Outperformance -1.6% -4.4% -12.9% 3.3%



February 5, 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.



February 5, 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



February 5, 2018

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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.

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religare morning · pdf filewe recommend a buy on the stock with a target price of rs. 483....

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