religare morning digest - religareonline.com which may lead to ... maruti suzuki india ltd maruti...

1 Disclaimer: http://www.religareonline.com/research/Disclaimer/

Religare Morning Digest

August 24, 2017

Nifty Outlook

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

NIFTY 9960 10000 9800

Markets gained nearly a percent in a volatile session, thanks to surprise up move in last hour. Sentiment was firm from the beginning, citing recovery in global markets but lack of follow-up buying capped upside in the middle. Much to the participants’ surprise, it surged almost vertically in last hour, tracking buying in select index majors. Banking, realty, financial and metal counters were the top gainers on sectoral front.

Markets are volatile these days and we do not expect any relief from that front. Nifty should hold above 9900 for further bounce else profit taking will resume. We advise continuing with stock specific trading approach and keeping hedged positions.

Sectors to watch

Sector Name Outlook

AUTO STABLE

ENERGY STABLE

REALTY WEAK

News

Religare Super Ideas**

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

Catego-ry

Amt. MTD FYTD

FII -829 -12621 -21993

DII 435 11565 36405

NO OF CON-

TRACTS

TURNOVER IN CR

IDXFUTS 235054 20040

IDXOPT 6808272 606826

STKFUTS 687642 606826

Derivative Ideas **

PSU banks rallied after Cabinet Committee gave in-principle approval for the next level of merger. The Cabinet has approved setting up alternative mechanism for PSU banks merger, which may lead to faster consolidation of PSU banks. Accordingly, a group of ministers will be formed on the basis of alternative mechanism for merger of some public sector banks. SBI, Allahabad Bank, Bank of India, Union Bank, Oriental Bank of Commerce, Syndicate Bank, PNB and Canara Bank gained between 2-4%.

Tata Power stated that its renewable portfolio recorded a 329% jump in its consolidated net profit at Rs. 142.2cr in Q1FY18, against the corresponding three months a year ago. The renewable business capacity of Tata Power crossed 2,000 MW and its non-fossil fuel portfolio stood at 3,144 MW, a 92% increase from a year ago.

Indo Count Industries ended higher by 9% after the company clarified that it is fundamentally well placed and focus on innovation, customer centricity and prudent business practices will lead to continuous growth going forward. The company has denied any loss of customers or rejection of orders.

*FII & DII data as on 22nd August 2017

Scrip Buy/Sell CMP Initiation

Range SL* Target

GAIL BUY 385.45 380-384 373 400

TATAPOWER SELL FUTS

78.85 80-81 82.50 75

**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 TARGET

KAJARIACER

AUGUST BUY 800 651-652 644 666



August 24, 2017

Religare Super Ideas

Investment Pick - Jain Irrigation Systems Ltd

Jain Irrigation Systems Ltd (JISL) reported slightly subdued Q1FY18 result, largely owing to GST related destocking. Net sales increased by 1.3% YoY while

EBITDA and PAT declined by 1.4% and 4.1% respectively over Q1FY17.

Despite a weak Q1FY18, we expect JISL to resume on its growth trajectory considering it is a market leader of domestic micro irrigation segment. The

government's focus on micro irrigation and good monsoon augurs well for JISL's hi-tech agri-input products division. Agro Processing and plastic division will further boost the company’s earnings growth.

Scrip CMP Target Duration Recommendation Price

JISLJALEQS 94.80 125 9-12 Months 93

Kajarai ceramics have seen fresh long buildup of

around 25% surge in open interest in yesterdays

trade. We expect the stock to rally toward 666 in

the short term.

Strategy: BUY Kajaria ceramic aug@651-652

stoploss at 644,target of 666.

Derivative Ideas

GAIL (India) Limited (GAIL) Tata Power Company Limited

(TATAPOWER)

We are reiterating our long position in GAIL with

the updated levels as it was not initiated earlier.

TATAPOWER has been trading with negative bias

while hovering around confluence zone of its

important moving averages on daily chart. Today, it

has formed a fresh shorting pivot on chart and

likely to witness fresh fall. Traders can initiate

fresh shorts in the given range.



August 24, 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% 138.4

Atul Auto 22-Mar-16 506 580 14.6% 444.4

Cigniti Technologies Ltd. 5-Oct-16 419 538 28.3% 216.5

Fiem Industries 26-Dec-16 1,089 1,315 20.8% 896.3

Greenply Industries 3-Feb-17 268 304 13.4% 274.0

Arman Financial Services 22-Feb-17 226 340 50.0% 182.8

Berger Paints (I) Ltd 15-Mar-17 230 273 18.7% 237.2

Mayur Uniquoters Ltd 18-Apr-17 380 478 25.8% 358.2

Indo Count Industries Ltd. 17-May-17 198 240 21.2% 109.3

SML Isuzu 25-May-17 1,247 1,525 22.3% 920.9

Tv Today Network 2-June-17 263 335 27.3% 245.5

Mold-Tek Packaging Limited 7-June-17 274 340 24.1% 292.4

Castrol India 20-June-17 412 463 12.3% 389.5

APL Apollo Tubes 12-July-17 1,596 2,352 47.4% 1,504.4

Force Motors 27-July-17 4,104 4,897 19.3% 3,780.7

Zee Entertainment Enterprises 28-July-17 539 592 9.8% 514.9

CRISIL 01-Aug-17 1,858 2,419 30.2% 1,865.3

Sutlej Textiles 01-Aug-17 894 951 6.3% 831.5

LIC Housing Finance 09-Aug-17 681 748 9.8% 659.7

Eicher Motors Ltd 09-Aug-17 31,630 40,467 27.9% 30,648.3

Wonderla Holidays 17-Aug-17 339 430 26.8% 333.9

Manpasand Beverages 17-Aug-17 803 891 11.0% 830.9

The Byke Hospitality 17-Aug-17 195 242 24.1% 189.7

Century Plyboards 18-Aug-17 251 307 22.3% 259.9

NRB Bearings 18-Aug-17 118 139 17.8% 119.0

Srikalahasthi Pipes Ltd 18-Aug-17 362 416 14.8% 367.4

Avanti Feeds 21-Aug-17 1,921 2,240 16.6% 1,947.0

Jain Irrigation Systems Ltd. 23-Aug-17 93 125 34.4% 94.8



August 24, 2017

Corporate Action Calendar — August 2017 (Cash Dividend)

Sun Mon Tue Wed Thu Fri Sat

20 21

Future Lifestyle Fashions Ltd

Minda Industries Ltd

Future Enterprises Ltd

Future Enterprises Ltd

Sunil Hitech Engineers Ltd

Mallcom India Ltd

GOCL Corp Ltd

Swiss Glascoat Equipments Ltd

Jaysynth Dyestuff India Ltd

Competent Automobiles Co Ltd

Sphere Global Services Ltd

Hinduja Global Solutions Ltd

Sun TV Network Ltd

22

Pfizer Ltd/India

Pfizer Ltd/India

Safari Industries India Ltd

Entertainment Network India Ltd

Entertainment Network India Ltd

Gini Silk Mills Ltd

Man Infraconstruction Ltd

Oceanaa Biotek Industries Ltd

Sharda Motor Industries Ltd

Manappuram Finance Ltd

Triveni Engineering & Industries Ltd

23

Bharat Heavy Electricals Ltd

Dalmia Bharat Sugar

Ador Welding Ltd

Joonktollee Tea & Industries

Mangalam Cement Ltd

Symphony Ltd

Rane Holdings Ltd

India Glycols Ltd

Pidilite Industries Ltd

KCP Ltd

Balaji Telefilms Ltd

Rupa & Co Ltd

TV Today Network Ltd

Lovable Lingerie Ltd

Centrum Capital Ltd

Mazda Ltd

Linc Pen & Plastics Ltd

KSE Ltd

Indus Finance Ltd

Deep Industries Ltd

Rain Industries Ltd

Trident Ltd/India

Granules India Ltd

24

Vimta Labs Ltd

Maruti Suzuki India Ltd

Maruti Suzuki India Ltd

Nitin Spinners Ltd

Chambal Fertilizers and Chemicals Ltd

Shree Hari Chemicals Export Ltd

India Motor Parts and Accessories Ltd

India Cements Ltd/The

Ahmedabad Steelcraft Ltd

Kanoria Chemicals & Industries Ltd

25 26

Corporate Action Calendar — August 2017 (Stock Buyback)

Sun Mon Tue Wed Thu Fri Sat

20 21

Cheviot Co Ltd

Renaissance Jewellery

22 23 24 25 26



August 24, 2017

Current Portfolio and Performance Summary as on 23rd August’17

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

Castrol India Energy August 5, 2016 8.9% 425 389

Amara Raja Batteries Auto March 22, 2017 10.0% 868 767

TV Today Network Media & Ent. May 10, 2017 9.3% 279 246

RBL Bank Financial Services July 11, 2017 9.6% 532 509

Muthoot Finance Financial Services July 26, 2017 9.6% 482 444

Talwalkars Better value

Fitness Health Fitness July 27, 2017 10.3% 302 293

Va Tech Wabag Infrastructure August 16, 2017 9.7% 636 603

Nilkamal Plastic Products August 17, 2017 9.6% 1,682 1,574

CDSL BFSI August 23, 2017 9.8% 334 333

Cash 13.2%

Total 100%



August 24, 2017

Historical Performance as on 23rd August’17

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

Religare Alpha -2.5% 4.2% 3.4% 31.5%

Nifty 5.0% 10.2% 14.1% 25.0%

Outperformance -7.5% -6.0% -10.7% 6.5%



August 24, 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 24, 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]

Team Members



August 24, 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.

http://old.religareonline.com/research/Disclaimer/Disclaimer_RSL.html

religare morning digest - religareonline.com which may lead to ... maruti suzuki india ltd maruti...

Documents