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Religare Morning Digest

August 4, 2017

Nifty Outlook

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

NIFTY 10035 10500 10000

Markets ended lower in continuation to yesterday’s fall and closed around the day’s low. Participants were in the profit taking mood from the beginning, citing uncertainty on further rate cut and mixed global markets. Mostly sectoral indices traded under pressure and the market breadth too ended on weak note.

We feel it’s a normal correction after a phenomenal rally and Nifty has decisive support around 9900. Investors should use this slide to gradually add sound counters and wait for the market to resume its trend. Traders, on the other hand, should keep a check on leveraged positions now and prefer hedged positions, citing possibility of volatile swings during the consolidation phase.

Sectors to watch

Sector Name Outlook

AUTO STABLE

FMCG STABLE

PHARMA WEAK

News

Religare Super Ideas**

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

Category Amt. MTD FYTD

FII 474 -472 -9844

DII -233 1158 25998

NO OF CON-

TRACTS

TURNOVER IN CR

IDXFUTS 202312 17932

IDXOPT 10374152 1004397

STKFUTS 707086 50797

Derivative Ideas **

Colgate Palmolive's profit for Q1FY18 grew by 8.5%YoY to Rs 136cr on strong operational performance. Revenue declined 2.7%YoY to Rs 1,118cr, with volume de-growth of 5% (against estimates of 6-8% de-growth). Operating profit increased 5% to Rs 222cr and margin expanded by 190 bps to 22.7%. Colgate has market share of 54.3% in toothpaste segment.

Diesel and natural gas engines manufacturer Cummins India reported standalone net profit of Rs 222cr, up 22.6% YoY. The profitability was driven by one-time gain of Rs 56cr on sale of assets. Revenue during the quarter grew by 5.3% to Rs 1,419cr YoY. Operating profit fell 5.4% YoY to Rs 195cr and margin contracted by 80 bps to 14.6% in Q1FY18.

Indian Oil Corporation rallied after revenue in Q1FY18 increased to Rs 1.28 lakh cr from Rs 1.22 lakh cr on sequential basis. Numbers barring GRM beat analysts' expectations. Profit stood at Rs 4,548cr against expectations of Rs 3,013cr. Operating profit stood at Rs 7,999 cr(up 81.4% QoQ) and margin at 7.6%(4.4% QoQ) against expectations of Rs 6,213cr and 6.5%, respectively. Gross refining margin came in at USD 4.32 a barrel against estimates of USD 4.60 a barrel.

*FII & DII data as on 2nd August 2017

Scrip Buy/Sell CMP Initiation

Range SL* Target

MGL BUY 1009.95 990-1000 980 1050

FEDERALBNK SELL FUTS 113.70 114-115 117.50 108

**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

PRICE SL

TAR-GET

IOC BUY

FUTS 1500 384-386 375 415



August 4, 2017

Religare Super Ideas

Investment Pick - Sutlej Textiles

Sutlej Textiles Industries Ltd (STIL) reported mix set of numbers for Q1FY18. While net revenue growth of 18% YoY was above our estimates, the company

disappointed on the profit front. Led by higher input cost and other expenses, the EBITDA margins contracted 338bps YoY to 10.7%. PAT de-grew by 47.7% YoY.

We expect STIL to deliver improved performance from Q3FY18, especially on the margin front. With market leadership, diversified offerings of value added

products & steady capacity addition, STIL is placed in a sweet spot to exploit the available opportunities in the textile industry. We maintain BUY on the stock with revised target price of Rs 951.

Scrip CMP Target Duration Recommendation Price

SUTLEJTEX 873.05 951 9-12 Months 894

IOC added around 12.40% of open interest as fresh

long positions. On charts, it has rebounded from

historical price support of 366 and 200 EMA support

of 367 levels on daily charts. It has also registered

trend-line breakout on daily charts with strong

volumes. We expect it to rally till 415 levels in short

term. Hence, we recommend buying IOC August

futures as per levels given below.

Strategy: BUY IOC AUG FUTS BETWEEN 384-386, SL

375, TARGET 415.

Derivative Ideas

Mahanagar Gas Limited (MGL) The Federal Bank Limited (FEDERALBNK)

MGL has posted a breakout today from its trading

range i.e. 980-1005 on daily chart. Keeping in mind

its overall chart pattern, we expect strong surge

ahead so traders can initiate fresh longs in the

given range.

FEDERALBNK is currently witnessing profit taking

after retesting its record high and likely to retrace

further. Traders can utilise the recent bounce to go

short in the given range.



August 4, 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% 141.1

Atul Auto 22-Mar-16 506 580 14.6% 442.2

Cigniti Technologies Ltd. 5-Oct-16 419 538 28.3% 268.8

Fiem Industries 26-Dec-16 1,089 1,315 20.8% 886.6

Greenply Industries 3-Feb-17 268 304 13.4% 265.2

Arman Financial Services 22-Feb-17 226 340 50.0% 207.0

Berger Paints (I) Ltd 15-Mar-17 230 273 18.7% 247.0

Mayur Uniquoters Ltd 18-Apr-17 380 478 25.8% 359.6

Indo Count Industries Ltd. 17-May-17 198 240 21.2% 142.9

SML Isuzu 25-May-17 1,247 1,525 22.3% 1,024.8

Jain Irrigation Systems Ltd. 30-May-17 97 125 28.8% 101.6

Srikalahasthi Pipes Ltd 30-May-17 320 416 29.7% 368.0

Wonderla Holidays 31-May-17 378 430 13.7% 347.9

Tv Today Network 2-June-17 263 335 27.3% 240.9

The Byke Hospitality 6-June-17 190 242 27.4% 198.3

Mold-Tek Packaging Limited 7-June-17 274 340 24.1% 266.9

Castrol India 20-June-17 412 463 12.3% 391.8

Manpasand Beverages 21-June-17 798 891 11.7% 788.3

APL Apollo Tubes 12-July-17 1,596 2,352 47.4% 1,570.9

Force Motors 27-July-17 4,104 4,897 19.3% 4,002.4

Zee Entertainment Enterprises 28-July-17 539 592 9.8% 540.0

CRISIL 01-Aug-17 1,858 2,419 30.2% 1,843.4

Sutlej Textiles 01-Aug-17 894 951 6.3% 873.1



August 4, 2017

Corporate Action Calendar — August 2017 (Cash Dividend)

Sun Mon Tue Wed Thu Fri Sat

30 31

Eicher Motors Ltd

Simplex Realty Ltd

Panasonic Carbon India Co Ltd

Nilkamal Ltd

Gabriel India Ltd

Johnson Controls-Hitachi Air Conditioning India Ltd

Adani Ports & Special Economic Zone Ltd

Adani Enterprises Ltd

Indoco Remedies Ltd

Tata Chemicals Ltd

Tata Chemicals Ltd

Dollar Industries Ltd

Dhunseri Investments Ltd

Naga Dhunseri Group Ltd

Astral Polytechnik Ltd

Menon Bearings Ltd

IRB Infrastructure Developers Ltd

Sanofi India Ltd

01

Gravita India Ltd

TCPL Packaging Ltd

Allcargo Logistics Ltd

Century Plyboards India Ltd

Prabhat Dairy Ltd

Wonderla Holidays Ltd

Timken India Ltd

Morganite Crucible India Ltd

Disa India Ltd

Honeywell Automation India Ltd

Goodyear India Ltd

Peria Karamalai Tea & Produce Co Ltd/The

Frontline Securities Ltd

Parag Milk Foods Ltd

Parag Milk Foods Ltd

Citadel Realty & Developers Ltd

Apar Industries Ltd

McLeod Russel India Ltd

Hercules Hoists Ltd

02

Great Eastern Shipping Co

Bright Brothers Ltd

Crest Ventures Ltd

Hikal Ltd

Gujarat Pipavav Port Ltd

GlaxoSmithKline Consumer Healthcare Ltd

SH Kelkar & Co Ltd

Borosil Glass Works Ltd

Godrej Industries Ltd

Capital Trust Ltd/India

Praj Industries Ltd

Asahi India Glass Ltd

Ultramarine & Pigments Ltd

Kaira CAN Co Ltd

INEOS Styrolution India Ltd

Nava Bharat Ventures Ltd

Lotus Eye Hospital & Institute Ltd

AVT Natural Products Ltd

Panasonic Energy India Co GRP Ltd/India

Fomento Resorts & Hotels

Zodiac Clothing Co

Aegis Logistics Ltd

Page Industries Ltd

Ambuja Cements Ltd

Nestle India Ltd

Indiabulls Housing Finance

03

Shilchar Technologies Ltd

Thyrocare Technologies Ltd

Quick Heal Technologies Ltd

Avanti Feeds Ltd

Kajaria Ceramics Ltd

Orient Paper & Industries Ltd

Emami Paper Mills Ltd

JMC Projects India Ltd

Rajratan Global Wire Ltd

Diana Tea Co Ltd

TAKE Solutions Ltd

Triveni Turbine Ltd

Deccan Cements Ltd

Kalpataru Power Transmission Ltd

Mindteck India Ltd

Clariant Chemicals India Ltd

Prime Urban Development India Ltd

VST Tillers Tractors Ltd

Indian Card Clothing Co Ltd

WIM Plast Ltd

National Fittings Ltd

DPSC Ltd

Sonata Software Ltd

Prima Plastics Ltd

Flex Foods Ltd

KDDL Ltd

Savera Industries Ltd

Advance Syntex Ltd

Foseco India Ltd

HCL Technologies Ltd

04

Peria Karamalai Tea & Produce Co Ltd

Akzo Nobel India Ltd

Welcast Steels Ltd

Voltas Ltd

Tata Investment Corp Ltd

AIA Engineering Ltd

NESCO Ltd

Tata Global Beverages Ltd

Balkrishna Industries Ltd

05



August 4, 2017

Corporate Action Calendar — August 2017 (Stock Dividend)


30 31

01

Jayant Agro-Organics Ltd

02

03 04

VIJI Finance Ltd

05

Corporate Action Calendar — August 2017 (Stock Split)


30 31

01 02

03

Coral India Finance & Housing Ltd

04 05

Corporate Action Calendar — August 2017 (Acquisition)

Date Target Company Acquirer Company

7/30/2017 TechJini Solutions Pvt Ltd Datamatics Global Services Ltd

7/31/2017 Holiday Triangle Travel Pvt Ltd Potential Buyer

7/31/2017 Tagos Design Innovations Pvt Ltd Zee Entertainment Enterprises Ltd

7/31/2017 SRS Bright Retail Ltd SRS Ltd

8/3/2017 Transchem Ltd Multiple acquirers

Economic Calendar — August 2017 (Stock Split)


30 31

Fiscal Deficit INR Crore

Eight Infrastructure Industries

01

Nikkei India PMI Mfg

02

RBI Repurchase Rate

RBI Reverse Repo Rate

RBI Cash Reserve Ratio

03

Nikkei India PMI Services

Nikkei India PMI Composite

04 05



August 4, 2017

Current Portfolio and Performance Summary as on 3rd August’17

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

Emami Consumer Goods August 3, 2016 9.3% 1,151 1,141

Castrol India Energy August 5, 2016 8.7% 425 392

Amara Raja Batteries Auto March 22, 2017 10.4% 868 818

TV Today Network Media & Ent. May 10, 2017 8.9% 279 241

Tata Motors Auto May 26, 2017 9.0% 475 431

Capital First Financial Services May 26, 2017 10.7% 705 764

RBL Bank Financial Services July 11, 2017 9.4% 532 517

Muthoot Finance Financial Services July 26, 2017 9.5% 482 454

Talwalkars Better value Fitness

Health Fitness July 27, 2017 10.3% 302 304

Cash 13.9%

Total 100%



August 4, 2017

Historical Performance as on 3rd August’17

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

Religare Alpha -2.7% 5.8% 7.2% 35.8%

Nifty 7.5% 14.6% 17.2% 27.0%

Outperformance -10.2% -8.7% -10.0% 8.8%



August 4, 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 4, 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]

Vipin Kumar [email protected]

Team Members



August 4, 2017

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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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S. No. Statement Answer

Yes No

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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

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No

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I/we have received any compensation for products or services other than brokerage services from the subject company in the past twelve months? No

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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

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