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Religare Morning Digest
July 27, 2016
Nifty Outlook
Nifty witnessed profit taking on Tuesday and lost nearly half a percent, tracking mixed cues.
Initially, cues were negative from Asian counterparts but rotational buying in select index
majors capped downside for most part of the session. Meanwhile, participants were busy in
rollover and unwinding of their positions, with just two days left for the July month F&O
expiry. But, sudden fall in last hour slightly unsettled the bull and pushed Nifty below 8600.
It’s clearly a tussle between the bulls and bears at current level ahead of curial events and
we reiterate our positive yet cautious bias. Even in adverse case, we’re not seeing Nifty
breaching 8400; however, possibility of time-wise correction is high. So, traders should limit
their trades till further clarity emerges.
VWAP (Expiry till date) Max OI (Call) Max OI (Put)
NIFTY 8475 8700 8400
Sectors to watch
Sector Name Outlook
CEMENT STABLE
FMCG STABLE
PHARMA STABLE
News Religare Super Ideas**
FII & DII Cash Segment (Rs. in Cr.) Trade Stats
Category Amt. MTD YTD
FII 891 7643 23502
DII -68 -4558 -1919
NO OF CON-
TRACTS
TURNOVER IN CR
IDXFUTS 379684 25554
IDXOPT 4460931 300992
STKFUTS 1314008 88962
Dr. Reddy’s Labs reported a 75% drop in its net profit. Net profit fell from Rs 626 Cr to Rs
153 Cr for the current quarter. Revenue income declined by 14.2% to Rs 3,222 Cr on account
of loss of business in Venezuela, and a drop in the volume sales in USA. Shares of the
company fell by 4.6%.
TVS Motors reported a 21% rise (YoY) in PAT from Rs 100.08 Cr to Rs 121.25 Cr for Q1FY
2017. Revenue sales grew by 12% whereas sales volume grew by 11%. Exports grew by 15.3%
to 7 lakh units from 6.1 lakh units.
Maruti Suzuki reported a 23% rise in net profit for the first quarter to Rs 1.486 Cr from Rs
1,208 Cr. Net sales grew by 12.1% in monetary terms and 2.1% growth was seen in volume
terms. Lower material costs and improved operational income contributed to the profit incre-
ment.
Derivative Ideas **
Instrument B/S Lot INITIATION
RANGE SL TARGET
ADANIENT
AUGUST FUTS BUY 8000 82.50-83 80.50 87
*FII & DII data as on 25th July 2016
Scrip Buy/Sell CMP Initiation
Range SL* Target
ARVIND BUY 304.95 300-305 295 325
BEL BUY 1226.25 1190-1210 1170 1280
**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.
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Religare Morning Digest
July 27, 2016
Religare Super Ideas
Investment Pick - Garware Wall Ropes Limited
Garware Wall Ropes Ltd manufactures various range of products like ropes, nets and aquaculture cages for capturing and breeding fish; nets for sports such as tennis, cricket; insect, shade nets for agriculture; ropes and safety nets for shipping and industrial; coated fabrics for covers, tents, etc and provides geosynthetic solutions for water & waste management and erosion-control applications.
Key Rationales: i) Diversified product offerings with strong presence across verticals and geographies, ii) constant focus on product innovations, iii) immense growth opportunity in the recently forayed defence sector, iv) Revenue growth to improve over FY16-18E, v) Margins to improve with higher contribution from exports; vi) Healthy cash flows, low leverage and improving return ratios.
Scrip CMP Target Duration Recommendation Price
GARWALLROP 447.25 560 9-12 Months 419
ADANIENT added 15.30% of open interest as fresh
long positions along with good delivery based
buying. It has rolled 27% into August series. On
charts, it has created a fresh buying pivot on daily as
well as on intraday charts. We expect it to rally till
87 in short term.
Strategy: BUY ADANIENT AUGUST FUTS BETWEEN
82.50-83, SL 80.50, TARGET 87.
Derivative Ideas
Arvind Limited (ARVIND) Bharat Electronics Limited (BEL)
ARVIND is witnessing profit-taking post recent up
move where it rallied from 235 till 344 levels. It’s
200 EMA is placed nearby at 298 levels, this will
limit down side. Hence, dip till that level can be
utilized for fresh entry.
BEL is trading close to its important averages
(50/100/200 EMA’s) placed at 1231/1211/1186
levels respectively. These averages will act as
immediate support if the trend starts to reverse.
Hence, one can initiate fresh long positions in the
mentioned range as profit to loss ratio is quite
favorable at current juncture.
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Religare Morning Digest
July 27, 2016
Result Calendar— July 2016
Sun Mon Tue Wed Thu Fri Sat
24 25
AMRIT CORP.LTD
AUTOMOTIVE STAMPINGS & ASSEMBLIES LTD.
BAJAJ CORP LTD.
CANARA BANK
EVEREADY INDUSTRIES INDIA LTD.
GEM SPINNERS INDIA LTD.
GHCL LTD.
GREENPLY INDUSTRIES LTD.
HIMALYA INTERNATIONAL
LTD.
HINDUSTAN OIL
EXPLORATION CO.LTD.
Indiabulls Housing Finance Ltd
JK PAPER LTD.
KG DENIM LTD.
KALYANI INVESTMENT
COMPANY LTD.
K.P.R.MILL LTD.
KALYANI STEELS LTD.
MAHARASHTRA SCOOTERS
LTD.
STATE BANK OF MYSORE
PIONEER INVESTCORP LTD.
STERLITE TECHNOLOGIES LTD.
TRITON CORP.LTD.
26
ACC LTD.
AJANTA PHARMA LTD.
AMBUJA CEMENTS LTD.
BAJAJ FINSERV LTD.
Bajaj Finance Limited
Capri Global Capital Limited
CHARMS INDUSTRIES LTD.
COROMANDEL
INTERNATIONAL LTD.
COSMO FILMS LTD.
DR.REDDY'S
LABORATORIES LTD.
EXCEL INDUSTRIES LTD.
FIRSTSOURCE SOLUTIONS
LTD.
IDFC LIMITED
IDFC Bank Ltd
BHARTI INFRATEL LTD.
KARUR VYSYA BANK LTD.
MARUTI SUZUKI INDIA LTD.
NIIT LTD.
PI Industries Ltd
PRIME SECURITIES LTD.
STATE BANK OF
TRAVANCORE
TATA ELXSI LTD.
TVS MOTOR COMPANY LTD.
27
ASIAN PAINTS LTD.
BAJAJ AUTO LTD.
BHARTI AIRTEL LTD.
CASTROL INDIA LTD.
DABUR INDIA LTD.
EVEREST INDUSTRIES LTD.
GIC HOUSING FINANCE
LTD.
HOUSING DEVELOPMENT
FINANCE CORP.LTD.
JSW STEEL LTD.
NIDHI GRANITES LTD.
NOCIL LTD.
OMAX AUTOS LTD.
SHIPPING CORPORATION
OF INDIA LTD.
SHRIRAM TRANSPORT
FINANCE CO.LTD.
TORRENT PHARMACEUTICALS LTD.
YES BANK LTD.
28
BLUE DART EXPRESS
LTD.
DISH TV INDIA LTD.
EICHER MOTORS LTD.
EXCEL CROP CARE LTD.
HIL LTD.
MAHINDRA LIFESPACE
DEVELOPERS LTD.
MUTHOOT FINANCE LTD.
REDINGTON (INDIA) LTD.
SHRIRAM CITY UNION
FINANCE LTD.
SUPREME INDUSTRIES
LTD.
SYNDICATE BANK
29
ALEMBIC PHARMACEUTICALS
LTD.
ADITYA BIRLA MONEY LTD
Cholamandalam Investment
and Finance Company Ltd
Crompton Greaves Consumer
Electricals Ltd
DIC INDIA LTD.
EPC INDUSTRIE LTD.
GABRIEL INDIA LTD.
GODREJ CONSUMER PROD-
UCTS LTD.
Heritage Foods Limited
ICICI BANK LTD.
KEC INTERNATIONAL LTD.
KARNATAKA BANK LTD.
LARSEN & TOUBRO LTD.
NESTLE INDIA LTD.
NIRLON LTD.
PIDILITE INDUSTRIES LTD.
PVR LTD.
RELIGARE ENTERPRISES LTD.
UPL Limited
Vedanta Limited
VLS FINANCE LTD.
30
FORCE MOTORS LTD.
Indo Cotspin Ltd
JINDAL CAPITAL LTD.
J.R.FOODS LTD.
JSW Holdings Limited
LLOYDS METALS AND EN-ERGY LTD.
RELAXO FOOTWEARS
LTD.
VENLON ENTERPRISES LTD.
YASH PAPERS LTD.
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Religare Morning Digest
July 27, 2016
Corporate Action Calendar— July 2016 (Cash Dividend)
Sun Mon Tue Wed Thu Fri Sat
24 25
Vinati Organics Ltd
Bharat Forge Ltd
Lupin Ltd
WABCO India Ltd
ESAB India Ltd
EIH Associated Hotels
Nava Bharat Ventures Ltd
Kesar Terminals & Infrastruct
Tata Consultancy Services Ltd
26
Gati Ltd
Emami Ltd
Nitta Gelatin India Ltd
PTL Enterprises Ltd
GlaxoSmithKline Consumer Heal
Hawkins Cookers Ltd
Entertainment Network India L
Bright Brothers Ltd
JK Cement Ltd
Raunaq EPC International Ltd
Berger Paints India Ltd
McLeod Russel India Ltd
Modex International Securitie
27
Jayshree Tea & Industries Ltd
Indo Amines Ltd
Godrej Properties Ltd
Srei Infrastructure Finance L
Magma Fincorp Ltd
Poddar Housing and Develop-
men
Igarashi Motors India Ltd
Dhunseri Petrochem Ltd
Lakshmi Machine Works Ltd
National Peroxide Ltd
Machino Plastics Ltd
Bombay Dyeing & Manufactur-
ing
28
Deepak Nitrite Ltd
SML ISUZU Ltd
Peninsula Land Ltd
Arvind Ltd
Sona Koyo Steering Systems Lt
TAJ GVK Hotels & Resorts Ltd
Crest Ventures Ltd
Gravita India Ltd
Apcotex Industries Ltd
Nicco Parks & Resorts Ltd
Triton Valves Ltd
Finolex Industries Ltd
Finolex Industries Ltd
Camlin Fine Sciences Ltd
Nelcast Ltd
MEP Infrastructure Developers
Tech Mahindra Ltd
Tech Mahindra Ltd
Transpek Industry Ltd
Zee Media Corporation Ltd
Wheels India Ltd
Bombay Cycle & Motor Agency L
Cummins India Ltd
Thermax Ltd
Tata Steel Ltd
ISGEC Heavy Engineering Ltd
29
Federal Bank Ltd
IL&FS Investment Managers Ltd
Simplex Realty Ltd
DCM Shriram Ltd
IL&FS Transportation Networks
Zuari Global Ltd
Skipper Ltd
Britannia Industries Ltd
Control Print Ltd
Lakshmi Electrical Control Sy
TCPL Packaging Ltd
Zuari Agro Chemicals Ltd
30
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Religare Morning Digest
July 27, 2016
Corporate Action Calendar— July 2016 (Stock Dividend)
Sun Mon Tue Wed Thu Fri Sat
24 25 26 27 28
Oceanaa Biotek Industries Ltd
Frontier Capital Ltd
29 30
Corporate Action Calendar— July 2016 (Stock Split)
Sun Mon Tue Wed Thu Fri Sat
24 25 26
Lloyds Metals & Energy Ltd
27 28 29 30
Corporate Action Calendar— July 2016 (Acquisition)
Date Target Company Acquirer Company
7/30/2016 ANI Technologies Pvt Ltd Multiple acquirers
Economic Calendar — July 2016
Sun Mon Tue Wed Thu Fri Sat
24 25 26
27 28 29
Fiscal Deficit INR Crore
30
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Religare Morning Digest
July 27, 2016
Market Snapshot
Sectoral Indices Performance
Index Closing % Change % MTD % YTD
NIFTY Auto 9,255 -1.32% 4.4% 12.1%
NIFTY Bank 18,861 -0.68% 5.2% 11.5%
NIFTY Energy 9,310 -0.17% 7.0% 8.5%
Nifty Financial Services 7,784 -0.58% 6.3% 10.3%
NIFTY FMCG 22,060 -0.36% 2.1% 9.2%
NIFTY IT 10,878 0.06% -2.2% -3.0%
NIFTY Media 2,717 -0.30% 3.2% 3.2%
NIFTY Metal 2,439 -0.10% 11.8% 33.5%
NIFTY Pharma 11,691 -1.50% 4.9% -2.3%
NIFTY PSU Bank 2,865 -1.14% 5.1% 0.0%
NIFTY Realty 206 -1.29% 3.0% 19.5%
Top Gainers - Nifty
Stock CMP (INR) % Chg % MTD % YTD
AXISBANK 553.80 2.92% 3.8% 23.3%
YESBANK 1,200.15 1.47% 8.4% 65.4%
POWERGRID 171.40 1.45% 5.1% 21.4%
TATASTEEL 367.80 1.14% 14.2% 41.6%
INFY 1,088.70 0.73% -7.0% -1.5%
Top Losers - Nifty
Stock CMP (INR) % Chg % MTD % YTD
DRREDDY 3,319.65 -4.67% -1.8% 6.8%
HINDALCO 131.65 -2.63% 7.2% 55.3%
ICICIBANK 261.65 -2.61% 8.8% 0.1%
HEROMOTOCO 3,210.10 -2.13% 1.0% 19.2%
AUROPHARMA 784.10 -1.92% 5.6% -10.5%
Bulk Deals - NSE
Security Name Client Name Buy/Sell Quantity Price Value (in Cr.)
Satin Credit Net Ltd MORGAN STANLEY ASIA (SINGAPORE) PTE BUY 323000 579.48 18.72
Unitech Ltd ADROIT SHARE & STOCK BROKER PVT. BUY 15583836 7.89 12.30
Unitech Ltd ADROIT SHARE & STOCK BROKER PVT. SELL 15484836 7.84 12.14
Unitech Ltd CRESCO FUTURES LTD BUY 13607294 7.9 10.75
Sudarshan Chemical Inds L MORGAN STANLEY ASIA (SINGAPORE) PTE BUY 355217 288.53 10.25
Unitech Ltd CRESCO FUTURES LTD SELL 12914294 7.89 10.19
AmtekAuto-Roll Sett SHAASTRA SECURITIES TRADING PRIVATE SELL 1478265 47.33 7.00
AmtekAuto-Roll Sett SHAASTRA SECURITIES TRADING PRIVATE BUY 1478265 47.3 6.99
Mandhana Indus. Ltd CHETAN RASIKLAL SHAH BUY 601014 47.53 2.86
Vikas EcoTech Limited ASHROJ CREDIT INDIA PRIVATE LIMITED BUY 1690099 16.36 2.77
Delivery Spurt stocks
Stock Name Day's del. Vol. Del. Vol. Price
Tree House Edu. 662,566 1725% 2.01%
Chola- 562,940 1616% 1.50%
Religare Enterp. 137,945 1454% -0.38%
Sunteck Realty 305,145 1368% 0.02%
Supreme Pet- 352,746 1219% -8.35%
Nava Bharat 206,548 1080% -2.40%
Bajaj Fin. 207,528 816% 9.63%
JM Financial 3,573,389 796% 4.80%
Amtek Auto 5,254,933 753% 7.50%
FDC 534,020 728% 0.79%
*Bulk deals data as on July 25, 2016
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Religare Morning Digest
July 27, 2016
Current Portfolio and Performance Summary as on 26th July’16
Stock Sector Entry Date Weight Reco price (`) CMP (`)
Dewan Housing Finance
Corporation Financial Services Feb 10, 2016 15.0% 193* 222
Bajaj Corp Consumer Goods May 13, 2016 9.4% 393 401
Reliance Industries Energy May 27, 2016 9.7% 970 1,024
City Union Bank Financial Services May 31, 2016 10.9% 107 125
Vinati Organics Chemicals June 28, 2016 9.5% 544 553
Magma Fincorp Financial Services June 30, 2016 9.0% 109 104
Sun Pharmaceutical
Industries Pharma July 15, 2016 10.0% 771 798
Cash 26.6%
Total Total 100%
*Weighted average price
*7.5% DHFL was bought at 237
*7.5% DHFL was bought at 163
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Religare Morning Digest
July 27, 2016
Historical Performance as on 26th July’16
Performance Matrix 1-Month 3-Month 6-Month 1-Year Since Inception
Religare Alpha 8.67% 12.10% 17.41% 6.79% 26.64%
Nifty 6.21% 9.36% 15.50% 2.75% 8.96%
Outperformance 2.46% 2.73% 1.90% 4.04% 17.68%
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Religare Morning Digest
July 27, 2016
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.
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Religare Morning Digest
July 27, 2016
Hitesh Agrawal [email protected]
Ajay Pasari, CFA [email protected]
Ajit Mishra [email protected]
Archana Gude [email protected]
Gaurav Sharma [email protected]
Swati Saxena [email protected]
Manoj M Vayalar [email protected]
Mehernosh Khurshed Panthaki [email protected]
Vipin Kumar [email protected]
Team Members
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Religare Morning Digest
July 27, 2016
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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]
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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
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.