Religare Morning Digest · Religare Morning Digest February 21, 2017 Nifty Outlook ... The Federal Bank Limited (FEDERALBNK) ... Arman Financial Services 14-Oct-16 260 338 30.0% 230.2

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Religare Morning Digest

February 21, 2017

Nifty Outlook

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

NIFTY 8715 9000 8800

Nifty settled with decent gains today and inched closer to 8900, thanks to positive domestic cues and firm global markets. The news of GST Council clearing states compensation law and buying in the select index majors pushed the index higher. Movement was mixed on the sectoral front wherein metal, IT and realty topped the gainers list.

We suggest maintaining positive yet cautious approach in index, considering the overbought market conditions. Stocks are also doing well in line with benchmark but witnessing volatile moves in between. And, the upcoming derivatives expiry will further add to the volatility so traders should prefer hedged positions and avoid excess leverage.

Sectors to watch

Sector Name Outlook

BANK STABLE

ENERGY STABLE

METAL STABLE

News

Religare Super Ideas**

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

Category Amt. MTD YTD

FII 8043 9403 23068

DII -5632 -2434 31389

NO OF CON-

TRACTS

TURNOVER IN CR

IDXFUTS 222869 15836

IDXOPT 3752151 268738

STKFUTS 1062383 74930

Derivative Ideas **

Dilip Buildcon received the Letter of Award (LOA) from National Highways Authority of India (NHAI) for a four lane road project in Maharashtra worth Rs. 911 Cr. The order is for a 67-kilometer long road project from Tuljapur to Ausa section of National Highway- 361.

Marksans Pharma announced that the health regulator - UK MHRA had completed inspection at the company’s Goa Plant without any critical observations. Shares zoomed up 20%.

Tata Consultancy Services (TCS) announced a buy-back of shares at a price of Rs. 2,850 per share. The company plans to buy-back up to 5.6 Cr equity shares worth a total of Rs. 16,000 Cr.

*FII & DII data as on 17th February 2017

Scrip Buy/Sell CMP Initiation

Range SL* Target

FEDERALBNK BUY 85.95 85-86 82 94

DISHTV BUY 90.70 89-90 86 100

**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

TAR-GET

NIFTY

B 8900 CE 75

25-27 3 34

S 8950 CE 12-14



February 21, 2017

Religare Super Ideas

Investment Pick - Talwalkars Better Value Fitness

Talwalkars Better Value Fitness Ltd (TBVFL) reported in-line numbers for Q3FY17 with a revenue and PAT growth of 14.4% & 13.9% YoY. Led by lower operating

cost, EBITDA margins expanded 260bps YoY to 49.5%. With steady gym additions, healthy same store sales growth and higher contribution from value added services, we expect healthy growth momentum in revenue and profit to continue.

We are maintaining our estimates for FY17E & FY18E. Further, we are incorporating projections for FY19E, wherein we expect revenue & PAT to grow by 14% &

20% respectively. Valuations are attractive, given TBVFL's leadership, good prospects, improving cash flows & declining debt-equity. We maintain BUY with target price of Rs 328.

Scrip CMP Target Duration Recommendation Price

TALWALKARS 216.90 328 9-12 Months 217

NIFTY futures added around 5% of open interest as

long positions. It has rolled around 20% into next

contract so far. Call buying was seen at 8900 strike

and huge put writing was seen at 8800 strike. We

recommend doing bull spread in nifty as per levels

given below.

Strategy: BUY NIFTY 8900 CE @ 25-27 & SELL 8950

CE @ 12-14, NET PREMIUM PAID 13, SL 3, TARGET

34.

Derivative Ideas

The Federal Bank Limited (FEDERALBNK) Dish TV India Limited (DISHTV)

FEDERALBNK, after witnessing profit taking from

the record high, has formed a fresh buying pivot on

the daily chart and looks all set for new record high

now.

DISHTV has registered breakout from its

consolidation zone with decent rise in volume

today i.e. 20th Feb, 2017. We advocate buying in

the mentioned range.



February 21, 2017

Religare Investment Calls

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

Tech Mahindra 7-Aug-15 534 600 12.4% 500.0

Kotak Mahindra Bank 19-Aug-15 688 900 30.8% 797.1

Glenmark Pharma 10-Sep-15 1,017 1,370 34.7% 940.7

Dabur India 10-Sep-15 275 325 18.1% 264.6

HUL 10-Sep-15 803 1,050 30.8% 854.5

Bajaj Corp 3-Nov-15 416 500 20.3% 373.6

Britannia Inds 23-Dec-15 2,896 3,600 24.3% 3256.9

Nandan Denim 5-Jan-16 150 183 22.0% 118.6

Atul Auto 22-Mar-16 506 580 14.6% 418.8

Jamna Auto 2-Sep-16 217 272 25.3% 201.5

SML Isuzu 26-Sep-16 1,300 1,560 20.0% 1237.6

Cigniti Technologies Ltd. 5-Oct-16 419 538 28.3% 398.0

Arman Financial Services 14-Oct-16 260 338 30.0% 230.2

Garware Wall Ropes Ltd. 23-Nov-16 567 686 21.0% 645.4

VIP Industries Ltd. 30-Nov-16 118 166 41.0% 151.7

Minda Corporation 06-Dec-16 95 117 23.2% 93.7

Fiem Industries 26-Dec-16 1,089 1,315 20.8% 954.4

Castrol India 26-Dec-16 358 483 34.9% 431.4

LIC Housing Finance 25-Jan-17 526 667 27.0% 559.3

Force Motors 25-Jan-17 4,274 5,210 21.9% 4112.1

Zee Entertainment Enterprises 27-Jan-17 498 592 18.8% 528.6

Swaraj Engines Ltd. 31-Jan-17 1,406 1,736 23.5% 1379.8

Greenply Industries 3-Feb-17 268 304 13.4% 298.4

Manpasand Beverages 7-Feb-17 681 854 25.4% 695.8

Wonderla Holidays 7-Feb-17 380 430 13.1% 373.0

Century Plyboards 8-Feb-17 216 300 38.8% 229.9

Credit Analysis and Research 9-Feb-17 1,381 1,694 23.0% 1395.1

NRB Bearings 9-Feb-17 108 132 22.2% 110.8

Tv Today Network 14-Feb-17 270 360 33.3% 265.4

CRISIL 14-Feb-17 2,078 2,540 22.2% 2058.0

Sutlej Textiles 14-Feb-17 843 1,032 22.5% 841.9

Jain Irrigation Systems 17-Feb-17 93 104 11.8% 95.2

Indo Count Industries Ltd. 17-Feb-17 164 207 26.2% 163.7

Talwalkars Better Value Fitness 20-Feb-17 217 328 51.1% 216.9



February 21, 2017

Result Calendar — February 2017

Sun Mon Tue Wed Thu Fri Sat

19 20

AMBUJA CEMENTS LTD.

HINDUSTAN EVEREST TOOLS LTD.

KSB PUMPS LTD.

Varun Beverages Ltd

21

CASTROL INDIA LTD.

E.I.D.-PARRY (INDIA) LTD.

ELANTAS BECK INDIA LTD.-$

HIND ALUMINIUM INDUSTRIES LTD.-$

ITD CEMENTATION INDIA LTD.

KAMAT HOTELS (INDIA) LTD.

NET 4 INDIA LTD.

NUWAY ORGANIC NATURALS INDIA LTD.

OVOBEL FOODS LTD.

Huhtamaki PPL Limited

RCL Foods Limited

22

NIVYAH INFRASTRUCTURE & TELECOM SERVICES LTD.

23

Mahindra CIE Automotive Lim-ited

Rain Industries Ltd

SAVITA OIL TECHNOLOGIES LTD.

STOVEC INDUSTRIES LTD.

TANTIA CONSTRUCTIONS LTD.

24 25



February 21, 2017

Corporate Action Calendar — February 2017 (Cash Dividend) Sun Mon Tue Wed Thu Fri Sat

19 20

Solar Industries India Ltd

AIA Engineering Ltd

Dhampur Sugar Mills Ltd

Fineotex Chemical Ltd

21 22

Greaves Cotton Ltd

Centum Electronics Ltd

Control Print Ltd

Hinduja Global Solutions Ltd

Sudarshan Chemical Industries

Hi-Tech Gears Ltd/The

Vidhi Dyestuffs Manufacturing Ltd

Indo Count Industries Ltd

Nicco Parks & Resorts Ltd

Poddar Pigments Ltd

NRB Bearings Ltd

Veto Switchgears and Cables Ltd

DCM Shriram Ltd

NCL Industries Ltd

MEP Infrastructure Developers Ltd

SJVN Ltd

Container Corp Of India Ltd

VIP Industries Ltd

Eldeco Housing & Industries Ltd

23

CESC Ltd

Natco Pharma Ltd

24 25

Corporate Action Calendar — February 2017 (Acquisition)

Date Target Company Acquirer Company

2/21/2017 Jaykay Enterprises Ltd JK Traders Ltd

2/23/2017 Sai Moh Auto Links Ltd Private Investor

2/23/2017 Soma Textiles & Industries Ltd KGPL Industries & Finvest Pvt Ltd

2/23/2017 Heptagon Technologies Pvt Ltd Quess Corp Ltd

Economic Calendar — February 2017

Sun Mon Tue Wed Thu Fri Sat

19 20 21 22 23 24

Eight Infrastructure Industries

25



February 21, 2017

Current Portfolio and Performance Summary as on 20th February’17

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

Bajaj Corp Consumer Goods May 13, 2016 8.7% 393 374

Magma Fincorp Financial Services June 30, 2016 8.5% 109 99

Apollo Hospitals

Enterprises Healthcare Services July 29, 2016 9.4% 1,362 1,278

Emami Consumer Goods August 3, 2016 9.7% 1,151 1,117

Castrol India Energy August 5, 2016 10.2% 425 431

Punjab National Bank Financial Services October 3, 2016 10.2% 143 143

Minda Corporation Auto Ancillaries October 10, 2016 9.1% 109 94

CRISIL Financial Services February 2, 2017 10.2% 2,000 2,058

Sml Isuzu Auto February 6, 2017 9.8% 1,265 1,238

Cash 14.2%

Total Total 100%



February 21, 2017

Historical Performance as on 20th February’17

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

Religare Alpha 5.7% 4.5% 0.2% 22.9% 27.4%

Nifty 6.3% 10.0% 2.9% 23.1% 12.6%

Outperformance -0.7% -5.5% -2.7% -0.2% 14.8%



February 21, 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.



February 21, 2017

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]

Siji A Philip [email protected]

Vipin Kumar [email protected]

Team Members



February 21, 2017

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No

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Religare Morning Digest · Religare Morning Digest February 21, 2017 Nifty Outlook ... The Federal Bank Limited (FEDERALBNK) ... Arman Financial Services 14-Oct-16 260 338 30.0% 230.2