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Religare Morning Digest

July 31, 2017

Nifty Outlook

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

NIFTY 10050 10500 9800

Nifty settled marginally lower in a volatile session, mirroring the move of last trading session. It opened on weak note, taking cues from the feeble earnings announcements and mixed global markets. However, recovery in the select index majors, especially from banking and financial space, pared losses and helped the index to end flat.

This consolidation is healthy for markets but it causes trouble too due to volatile swing in stocks. We suggest keeping hedged positions and maintaining extra care on stock selection. Broadly, the positive momentum will continue till Nifty upholds above 9850 so avoid contrarian trades.

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 1870 2930 -7950

DII -660 2595 22647

NO OF CON-

TRACTS

TURNOVER IN CR

IDXFUTS 212685 17684

IDXOPT 2993517 261921

STKFUTS 785153 58712

Derivative Ideas **

India Cements’ standalone revenue for Q1FY18 came in at Rs 1,462crs, a growth of 21.5%YoY. EBITDA for the quarter fell by 7.8%YoY to Rs. 186crs with a corresponding margin contraction of 405 bps at 12.7%. The PAT for the quarter came in at Rs 26.4crs, YoY decline of 39.9%. The stock closed down by 6%.

SKF India reported healthy Q1FY18 results. Net sales increased by 2.5%YoY at Rs 720crs. EBITDA for the quarter rose by 11.9%YoY to Rs 93.5crs. EBITDA margin for the quarter stood at 13%. The PAT for the quarter came in at Rs. 64.2crs, a growth of 6.4%YoY.

LIC Housing Finance’s Q1FY18 results disappointed the street. Net interest income for the quarter grew 9.2%YoY to Rs 936.9crs. The company’s provisions declined by 10.3%YoY to Rs 104.4crs. Net profit for the quarter increased 15.3%YoY to Rs 470crs. The stock closed down by 2%.

*FII & DII data as on 27th July 2017

Scrip Buy/Sell CMP Initiation

Range SL* Target

BHARATFORG BUY 1151.10 1140-

1150 1110 1220

BANKBARODA SELL FUTS 162.85 164-166 169 154

**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

HINDPETRO BUY

FUTS 1575 374-376 365 395



July 31, 2017

Religare Super Ideas

Investment Pick - Zee Entertainment Enterprises

Zee Entertainment Enterprises Ltd.'s Q1FY18 result was largely inline with our expectations. The company reported 2% YoY degrowth in sales primarily led by

lower subscription revenue. EBITDA increased by 26.8% YoY on account of lower operating cost while sharp surge in other income supported PAT growth at 15.8% YoY.

The company's strong bouquet offerings across regional languages and superior content would act as catalyst for future growth. Strong margins, presence across

genres, cash rich balance sheet augurs well for the company's growth prospects. We estimate revenue and EBITDA to grow at a CAGR of 7.5%, 6.9% respectively over FY17-19E. We maintain BUY on the stock with a price target of Rs 592.

Scrip CMP Target Duration Recommendation Price

ZEEL 540.60 592 9-12 Months 539

HINDPETRO added around 3% of open interest as

fresh long positions along with some delivery based

buying in previous trading session. It has also

created a fresh buying pivot on intraday as well as

on daily charts. It is also trading above its short term

as well as long term moving averages on daily

charts. Considering the recent developments, we

suggest buying HINDPETRO Aug futures as per

levels given below.

Strategy: BUY HINDPETRO AUG FUTS BETWEEN

374-376, SL 365, TARGET 395.

Derivative Ideas

Bharat Forge Limited (BHARATFORG) Bank of Baroda (BANKBARODA)

After consolidating in a narrow range near its

support zone of 50 and 100 day EMA on daily chart,

BHARATFORG is now trading on the verge of

breakout from the same. Further, the chart pattern

along with the indicators are also pointing towards

a fresh strong surge ahead.

BANKBARODA tried to recovered marginal of late

but failed to sustain above its resistance zone and

formed a fresh short pivot. We suggest using any

technical bounce to initiate fresh shorts.



July 31, 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% 149.6

Atul Auto 22-Mar-16 506 580 14.6% 425.3

Cigniti Technologies Ltd. 5-Oct-16 419 538 28.3% 269.2

Fiem Industries 26-Dec-16 1,089 1,315 20.8% 904.8

Greenply Industries 3-Feb-17 268 304 13.4% 272.5

Arman Financial Services 22-Feb-17 226 340 50.0% 209.6

Berger Paints (I) Ltd 15-Mar-17 230 273 18.7% 251.4

Mayur Uniquoters Ltd 18-Apr-17 380 478 25.8% 363.2

CRISIL 26-Apr-17 1,911 2,540 32.9% 1,872.5

Indo Count Industries Ltd. 17-May-17 198 240 21.2% 157.0

SML Isuzu 25-May-17 1,247 1,525 22.3% 1,134.2

Sutlej Textiles 29-May-17 902 1,032 14.5% 884.0

Jain Irrigation Systems Ltd. 30-May-17 97 125 28.8% 107.6

Srikalahasthi Pipes Ltd 30-May-17 320 416 29.7% 382.7

Wonderla Holidays 31-May-17 378 430 13.7% 357.2

Tv Today Network 2-June-17 263 335 27.3% 241.9

The Byke Hospitality 6-June-17 190 242 27.4% 202.4

Mold-Tek Packaging Limited 7-June-17 274 340 24.1% 280.0

Castrol India 20-June-17 412 463 12.3% 402.6

Manpasand Beverages 21-June-17 798 891 11.7% 807.2

APL Apollo Tubes 12-July-17 1,596 2,352 47.4% 1,600.0

Force Motors 27-July-17 4,104 4,897 19.3% 4,061.6

Zee Entertainment Enterprises 28-July-17 539 592 9.8% 540.6



July 31, 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



July 31, 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



July 31, 2017

Current Portfolio and Performance Summary as on 28th July’17

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

Emami Consumer Goods August 3, 2016 8.9% 1,151 1,105

Castrol India Energy August 5, 2016 8.8% 425 403

Amara Raja Batteries Auto March 22, 2017 10.5% 868 841

TV Today Network Media & Ent. May 10, 2017 8.8% 279 242

Tata Motors Auto May 26, 2017 9.2% 475 446

Capital First Financial Services May 26, 2017 10.6% 705 766

RBL Bank Financial Services July 11, 2017 9.6% 532 534

Muthoot Finance Financial Services July 26, 2017 9.7% 482 468

Talwalkars Better value Fitness

Health Fitness July 27, 2017 10.2% 302 305

Cash 13.8%

Total 100%



July 31, 2017

Historical Performance as on 28th July’17

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

Religare Alpha -2.0% 10.5% 7.7% 37.5%

Nifty 7.2% 15.9% 15.6% 27.0%

Outperformance -9.2% -5.4% -7.8% 10.5%



July 31, 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.



July 31, 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



July 31, 2017

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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 : ……………………………………………………………………………………………………………………

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[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]

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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

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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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