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Religare Morning Digest

July 16, 2018

Nifty Outlook

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

NIFTY 10840 11000 10600

Markets ended flat in a dull session, taking a breather after recent surge. Nifty opened with an uptick however weak macroeconomic data i.e. rise in CPI inflation and decline in IIP data triggered positive taking across the board mainly in cash segment. Mostly sectoral indices traded in line with the benchmark index and ended flat.

We’re bullish on Nifty and expect the prevailing up move to extend further however continuous fall in broader market causing maximum pain to the participants. We advise maintaining a mix of long and short positions on stock specific front to sail through this trouble time. On sectoral front, PSU banks look weakest to us while private banks, IT and FMCG stocks should be preferred for long trades.

Sectors to watch

Sector Name Outlook

AUTO STABLE

IT STABLE

FMCG STABLE

News Religare Super Ideas**

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

Category Amt. MTD FYTD

FII** -743 -4358 -37592

DII** 366 3856 42180

Derivative Ideas **

The construction arm of L&T has won orders worth Rs 3,000cr from the Andhra Pradesh Capital Region Development Authority for the engineering, procurement and construction of HoD office buildings at Amaravati.

R. S. Software India ended higher by 20% after the company disclosed that it was declared L1 bidder in reverse online auction by National Payments Corp. of India to develop and operate platform for EFRM.

Share price of PVR & Inox Leisure fell sharply after news that multiplexes in Maharashtra are likely to allow people to carry their own food items inside halls. This is expected to be effective from August 2018. Foods and beverages segment is generally a high margin business for multiplexes and that contributes 35-40% to industry EBITDA.

**Provisional data as on 12th July 2018

Scrip Buy/Sell CMP Initiation

Range SL* Target

HAVELLS BUY 560.20 555-560 540 590

ICICIBANK BUY

260PE 3.30 3-3.50 1 8

Instrument B/S Lot INITIATION

RANGE SL TARGET

DISHTV BUY

72.50

CE

8000 2.50-2.60 1.70 5

**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.

Trade Stats

NO OF CON-

TRACTS

TURNOVER IN CR

IDXFUTS 235605 21970

IDXOPT 14949050 1561548

STKFUTS 833773 58961

**As on 12th July 2018



July 16, 2018

Investment Pick - Kajaria Ceramics Ltd.

Kajaria Ceramics Ltd’s (KCL) Q4FY18 consolidated revenue growth of 4.1% YoY was more or less in line with our estimates, however, the company disappointed on the profit front. EBITDA de-grew by 8.2% with a 214bps YoY contraction in EBITDA margins.

Notwithstanding 1-2 quarters of muted growth, we expect improved performance from KCL going ahead. Healthy industry outlook and company’s continued focus on capacity additions and enhanced product offerings should drive its revenue and profitability. We maintain Buy on the stock with revised target price of Rs 635.

Scrip CMP Target Duration Recommendation Price

Kajaria Ceramics Ltd. 459.9 635 9-12 Months 518

DISHTV shed around 5% in open interest as short covering was seen in it in previous session. Current

chart pattern also indicates further surge in its price. We suggest buying DISHTV call options as per

below levels.

Strategy:- Buy DISHTV 72.50CE between 2.50-2.60,

Stoploss – 1.70, Target - 5 for 4-6 trading sessions.

Derivative Ideas Religare Super Ideas Religare Super Ideas Religare Super Ideas

Havells India Limited (HAVELLS) ICICI Bank Limited (ICICIBANK)

After a strong up move from 520 to 580 levels, HAVELLS has retraced marginally of late and has reached closer to its price support zone around 555,

offering fresh buying opportunity. We feel traders shouldn’t miss this chance and accumulate fresh long in the given range.

After sharp plunge from its trading range, ICICIBANK has been hovering in a range for past two weeks on chart, offering fresh shorting opportunity. We

therefore advise traders to create fresh short position through put option.



July 16, 2018

Religare Investment Calls

Name of the Company Reco Date Reco Price Target Price Upside % Previous day Closing Price

CRISIL 01-Aug-17 1,858 2,419 30.2% 1,768.1

LIC Housing Finance 09-Aug-17 681 748 9.8% 501.0

Tata Communications 18-Sept-17 708 822 16.1% 601.2

Force Motors 25-Jan-18 3,250 4,197 29.1% 2,422.7

Mold-Tek Packaging 8-Feb-18 346 379 9.5% 301.7

Avanti Feeds 12-Feb-18 835 967 19.0% 445.3

Talwalkars Better Value Fitness 12-Feb-18 304 350 15.1% 45.5

NRB Bearings 14-Feb-18 165 198 20.0% 170.1

Time Technoplast 23-Feb-18 185 249 34.6% 136.1

Navneet Education 17-May-18 139 188 35.3% 121.7

Swaraj Engines Ltd 23-May-18 1,974 2,426 22.9% 1,844.7

Prabhat Dairy Ltd. 24-May-18 176 230 30.6% 149.4

Srikalahasthi Pipes Ltd 24-May-18 299 379 26.9% 238.3

Nilkamal Ltd. 28-May-18 1,662 2,231 31.2% 1,627.9

Capacite Infraprojects Ltd. 28-May-18 274 371 35.4% 273.2

Castrol India Ltd 29-May-18 176 220 24.8% 159.2

Sutlej Textiles 31-May-18 61 75 24% 54.3

Symphony Ltd. 04-Jun-18 1,454 1,965 35.1% 1,383.5

Minda Corporation 05-Jun-18 160 213 33.1% 156.7

Bharat Electronics Ltd. 06-Jun-18 113 156 38.1% 103.8

S Chand & Company 08-Jun-18 365 562 54.0% 359.6

The Byke Hospitality 08-Jun-18 170 201 18.2% 131.0

Supreme Industries Ltd. 08-Jun-18 1,244 1,473 18.4% 1,182.5

Century Plyboards 11-Jun-18 254 343 35.0% 230.0

APL Apollo Tubes 11-Jun-18 1,789 2,289 28.0% 1,703.4

Fiem Industries 12-Jun-18 822 1,077 31.0% 774.4

SML Isuzu 13-Jun-18 814 1,028 26.3% 795.0

Asian Granito India Ltd. 14-Jun-18 358 511 42.7% 302.4

Wonderla Holidays 15-Jun-18 340 377 10.8% 325.7

Eicher Motors Ltd 15-Jun-18 29,491 33,592 13.9% 27,529.2

Kajaria Ceramics Ltd. 20-Jun-18 518 635 22.7% 459.9



July 16, 2018

Corporate Action Calendar — July 2018 (Cash Dividend) Sun Mon Tue Wed Thu Fri Sat

15 16

Tata Elxsi Ltd

Kirloskar Pneu-matic Co Ltd

Automobile Corp of Goa Ltd

Bimetal Bearings Ltd

Thirumalai Chemi-cals Ltd

Oriental Hotels Ltd

Jyothy Laborato-ries Ltd

Tata Chemicals Ltd

Dr Reddy's Labor-atories Ltd

Info Edge India Ltd

17

Syngene International Ltd

Agro Tech Foods Ltd

Shriram City Union Finance Ltd

Rane Madras Ltd

Everest Industries Ltd

NOCIL Ltd

Triton Valves Ltd

Vinati Organics Ltd

JK Cement Ltd

Geojit Financial Services Ltd

GE T&D India Ltd

ADC India Communications Ltd

Ponni Sugars Erode Ltd

Dixon Technologies India Ltd

Empire Industries Ltd/India

Alfred Herbert India Ltd

Tata Consultancy Services Ltd

18

IndusInd Bank Ltd

Cholamandalam Investment and Finance Co Ltd

Edelweiss Financial Services Ltd

Shriram Transport Finance Co Ltd

Phillips Carbon Black Ltd

PTL Enterprises Ltd

Apollo Tyres Ltd

Novartis India Ltd

Solar Industries India Ltd

Alembic Pharmaceuticals Ltd

Rolcon Engineering Co Ltd

Zydus Wellness Ltd

National Peroxide Ltd

Control Print Ltd

Kaira CAN Co Ltd

Super Sales India Ltd

Shardul Securities Ltd

Grindwell Norton Ltd

19

Bharti Infratel Ltd

Coromandel International Ltd

Persistent Systems Ltd

Mahindra & Mahindra Financial Services Ltd

Biocon Ltd

Mahindra Lifespace Developers Ltd

Shoppers Stop Ltd

Housing Development Finance Corp Ltd

RPG Life Sciences Ltd

Astec Lifesciences Ltd

PNB Housing Finance Ltd

Apcotex Industries Ltd

SQS India BFSI Ltd

Transcorp International Ltd

Saregama India Ltd

Kalyani Forge Ltd

Bombay Dyeing & Manufacturing Co Ltd

Crompton Greaves Consumer Electricals Ltd

Astra Microwave Products Ltd

Kitex Garments Ltd

Gujarat Ambuja Exports Ltd

Johnson Controls-Hitachi Air Conditioning India Ltd

MAC Charles India Ltd

Sudarshan Chemical Industries

Goodricke Group Ltd

Excel Crop Care Ltd

DFM Foods Ltd

Zuari Global Ltd

Meghmani Organics Ltd

Capri Global Capital Ltd

WABCO India Ltd

Piramal Enterprises Ltd

Minda Corp Ltd

Avantel Ltd

Unichem Laboratories Ltd

CMI FPE Ltd

20

GIC Housing Finance Ltd

DCM Shriram Ltd

Shree Cement Ltd

Century Textiles & Industries Ltd

Blue Dart Express Ltd

Ingersoll Rand India Ltd

KEC International Ltd

Coral India Finance & Housing Ltd

Alkyl Amines Chemicals

TTK Prestige Ltd

Redington India Ltd

Manugraph India Ltd

Kothari Petrochemicals

KCP Ltd

Apollo Sindoori Hotels Ltd

NLC India Ltd

21



July 16, 2018

Corporate Action Calendar — July 2018 (Acquisition)

Date Target Company Acquirer Company

07/16/2018

07/16/2018

07/16/2018

07/16/2018

07/19/2018

Parnami Credits Ltd

SCM Logfocus India Ltd

Milgrey Finance & Investments Ltd

Rex Polyextrusion Pvt Ltd

RAK Paints Ltd

Private Investor

Transport Corp of India Ltd

Private Investor

Astral Polytechnik Ltd

Kansai Nerolac Paints Ltd

Corporate Action Calendar — July 2018 (Equity Offering)

Sun Mon Tue Wed Thu Fri Sat 15 16

17

18

Ambani Organics Ltd

19

20

21

Corporate Action Calendar — July 2018 (Stock Dividend)

Sun Mon Tue Wed Thu Fri Sat

15 16

17

18

MM Forgings Ltd

19

KKV Agro Powers Ltd

20

21

Economic Calendar — July 2018

Sun Mon Tue Wed Thu Fri Sat 15 16

Wholesale Prices YoY

17

18

19

20

21



July 16, 2018

Current Portfolio and Performance Summary as on 13th July’18

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

Amara Raja Batteries Auto Mar 22, 2017 10.5% 868 805

RBL Bank Financial Services July 11, 2017 10.7% 532 571

Muthoot Finance Financial Services July 26, 2017 8.5% 482 393

Va Tech Wabag Infrastructure August 16, 2017 6.0% 636 371

Can Fin Homes Financial Services September 19, 2017 7.0% 572 330

CARE Financial Services September 20, 2017 9.4% 1,493 1,242

Godfrey Phillips India Consumer Goods January 5, 2018 7.9% 1,022 730

CCL Products Beverages January 9, 2018 10.3% 306 282

Security and Intelli-gence Services (India)

Consumer Services Jul 9, 2018 9.8% 1,163 1,144

UltraTech Cement Cement Jul 12, 2018 12.1% 3,975 3,964

Cash 7.8%

Total 100%



July 16, 2018

Historical Performance as on 13th July’18

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

Religare Alpha -5.7% -12.0% -4.5% 31.4%

Nifty 5.4% 3.2% 11.4% 39.8%

Outperformance -11.1% -15.1% -15.9% -8.4%

850

950

1,050

1,150

1,250

1,350

1,450

1,550

10

/13

/20

14

11

/13

/20

14

12

/13

/20

14

1/1

3/20

15

2/1

3/20

15

3/1

3/20

15

4/1

3/20

15

5/1

3/20

15

6/1

3/20

15

7/1

3/20

15

8/1

3/20

15

9/1

3/20

15

10

/13

/20

15

11

/13

/20

15

12

/13

/20

15

1/1

3/20

16

2/1

3/20

16

3/1

3/20

16

4/1

3/20

16

5/1

3/20

16

6/1

3/20

16

7/1

3/20

16

8/1

3/20

16

9/1

3/20

16

10

/13

/20

16

11

/13

/20

16

12

/13

/20

16

1/1

3/20

17

2/1

3/20

17

3/1

3/20

17

4/1

3/20

17

5/1

3/20

17

6/1

3/20

17

7/1

3/20

17

8/1

3/20

17

9/1

3/20

17

10

/13

/20

17

11

/13

/20

17

12

/13

/20

17

1/1

3/20

18

2/1

3/20

18

3/1

3/20

18

4/1

3/20

18

5/1

3/20

18

6/1

3/20

18

7/1

3/20

18

Performance Comparison

Religare Alpha Nifty



July 16, 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.



July 16, 2018

Hitesh Agrawal [email protected]

Ajit Mishra [email protected]

Ashish Bagai [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



July 16, 2018

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No

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