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Religare Morning Digest
September 8, 2016
Nifty Outlook
After strong surge in the previous session, markets remained in consolidation mood on Wednesday and ended slightly lower. However, jubilation continued on stock specific front, which kept the traders busy. Among sectoral indices, PSU bank clearly outshined others, thanks to latest statement from the Finance Minister emphasising on revival of banking sector, while rest of pivots traded mixed with the bias on positive side.
We’re bullish on markets and now eyeing new record high in Nifty in coming days so use pause or consolidation in index to add fresh longs. However, traders should remain cautious on sector and stock selection. As anticipated, we’ve started seeing recovery in pharma and infra space of late and expect them to gain momentum ahead. So, alongside the existing leaders, traders can consider quality counters from the above two sectors for fresh buying.
VWAP (Expiry till date) Max OI (Call) Max OI (Put)
NIFTY 8785 9000 8600
Sectors to watch
Sector Name Outlook
FMCG STABLE
BANKS STABLE
PHARMA STABLE
News
Religare Super Ideas**
FII & DII Cash Segment (Rs. in Cr.) Trade Stats
Category Amt. MTD YTD
FII 1439 1303 39035
DII -268 175 -7645
NO OF CON-
TRACTS
TURNOVER IN CR
IDXFUTS 195828 14484
IDXOPT 4242563 327314
STKFUTS 701781 51857
Derivative Ideas **
Bharat Heavy Electricals Limited (BHEL) reported a 54.2% jump in net profit to Rs. 77.8 Cr for Q1, as against Rs. 50.4 Cr in the corresponding quarter last fiscal. Total Income from Operations was up by 28.7% at Rs. 5,622.5 Cr, compared to Rs. 4367.7 Cr previously. Shares of BHEL closed up 15.6%.
SpiceJet reported a 104% rise in net profit for Q1 at Rs. 149 Cr, as compared to Rs. 73 Cr previously. Total Revenues increased by 36.7% to Rs. 1,521.5 Cr against Rs. 1,113 Cr previously. Shares closed up 20%.
Oil India Limited (OIL) reported a 33.5% drop in net profit to Rs. 494.4 Cr for Q1, against Rs. 743.2 Cr previously. Total Income from Operations fell by 23% to Rs. 2,221.2 Cr, from Rs. 2,882.6 Cr previously.
Instrument B/S Lot INITIATION
RANGE SL TARGET
JETAIRWAYS
SEPT FUTS BUY 1000 545-550 530 600
*FII & DII data as on 6th September 2016
Scrip Buy/Sell CMP Initiation
Range SL* Target
GODREJIND BUY 436 432-436 422 460
SIEMENS BUY 1295.90 1295-1310 1250 1420
**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
September 8, 2016
Religare Super Ideas
Investment Pick - Force Motors
The company has presence across automobiles, components and aggregates segments. Force's Traveller is one of the most popular inter and intra city mobility
vehicles in the country. In traveller segment, it is the market leader with market share of 67%. It has also forayed into defense, fire and rescue segment with the launch of paramilitary ambulances and emergency rescue vehicles.
Force Motors is engaged in the assembling of engines, axles and gear boxes for both Mercedes and BMW in India. It is the only company in the world to supply
engines to two of the world's biggest luxury car makers. It has set up two plants in Chennai and Pune to cater to BMW and Mercedes respectively with an aggregate investment of Rs. 300Cr.
Scrip CMP Target Duration Recommendation Price
FORCEMOT 3129.75 3,940 9-12 Months 3,088
JETAIRWAYS added 3.4% of open interest as fresh
long positions. Daily vwap is around 545 levels. On
charts, it is trading on verge of congestion zone
breakout of last 18 days. We expect it to rally till
600 in short term.
Strategy: BUY JETAIRWAYS SEPT FUTS BETWEEN
545-550, SL 530, TARGET 600.
Derivative Ideas
Godrej Industries Limited (GODREJIND)
GODREJIND, after the recent retracement, has
formed a fresh buying pivot while consolidating
above the support area of its short term moving
averages. And, now it’s ready to resume the
prevailing trend.
SIEMENS has seen fresh breakout from a flag
pattern on Wednesday i.e. 07th Sept and looks up-
beat for fresh surge.
Siemens Limited ( SIEMENS)
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Religare Morning Digest
September 8, 2016
Result Calendar— September 2016
Sun Mon Tue Wed Thu Fri Sat
04 05
INTERLINK PETROLEUM LTD.
MALWA COTTON SPINNING MILLS LTD.
PETRONET LNG LTD.
SIMPLEX INFRASTRUCTURES LTD.
06
ELECTROSTEEL STEELS LTD.
HMT LTD.
JINDAL POLY FILMS LTD.
KOLTE-PATIL DEVELOPERS LTD.
NITIN FIRE PROTECTION INDUSTRIES LTD.
OIL INDIA LTD.
Siti Networks Ltd
07
ASIAN HOTELS (EAST) LTD.
BHARAT HEAVY ELECTRI-CALS LTD.
CHENNAI PETROLEUM COR-PORATION LTD.
DCW LTD.
IP RINGS LTD.-$
OIL AND NATURAL GAS CORPORATION LTD.
Precision Camshafts Ltd
Swelect Energy Systems Limited-$
08
APIS INDIA LTD.
ESSAR SHIPPING LTD.
HINDUSTAN COMPOSITES LTD.
Nagarjuna Fertilizers and Chemicals Ltd
PURAVANKARA PROJECTS LTD.
STEEL AUTHORITY OF INDIA LTD.
TV TODAY NETWORK LTD.
VENKY'S (INDIA) LTD.
ZUARI AGRO CHEMICALS LTD.
ZUARI GLOBAL LTD.
09
COAL INDIA LTD.
GUJARAT STATE PETRONET LTD.
NATIONAL ALUMINIUM CO.LTD.
RESPONSIVE INDUSTRIES LTD.
SJVN Ltd
Sobha Limited
TIMKEN INDIA LTD.
ZUARI AGRO CHEMICALS LTD.
ZUARI GLOBAL LTD.
10
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Religare Morning Digest
September 8, 2016
Corporate Action Calendar — September 2016 (Cash Dividend)
Sun Mon Tue Wed Thu Fri Sat
04 05
06
JK Paper Ltd
Orient Bell Ltd
Bliss Gvs Pharma Ltd
Indsil Hydro Power and Manga-nese Ltd
Datamatics Global Services Ltd
Hindalco Industries Ltd
Sandur Manganese & Iron Ores Ltd/The
Sumedha Fiscal Services Ltd
Kauntam Papers Ltd
07
Nirlon Ltd
Grasim Industries Ltd
Grasim Industries Ltd
TT Ltd
Relaxo Footwears Ltd
Kanpur Plastipack Ltd
Tata Power Co Ltd
MOIL Ltd
Engineers India Ltd
Lakshmi Mills Co Ltd
NLC India Ltd
Lambodhara Textiles Ltd
BEML Ltd
Savera Industries Ltd
Magna Electro Castings Ltd
Orbit Exports Ltd
Sanco Trans Ltd
Pilani Investment & Industries Corp Ltd
08
Gujarat Hotels Ltd
Mangalam Cement Ltd
NBCC India Ltd
PNB Gilts Ltd
Emmbi Industries Ltd
Ugar Sugar Works Ltd
Nagarjuna Agrichem Ltd
Himatsingka Seide Ltd
Manali Petrochemicals Ltd
Indus Finance Ltd
Sicagen India Ltd
Escorts Ltd
GAIL India Ltd
Tips Industries Ltd
Pondy Oxides & Chemicals Ltd
Power Grid Corp of India Ltd
NHPC Ltd
Kolte-Patil Developers Ltd
Nahar Capital and Financial Ser-vices Ltd
Mazda Ltd
NTPC Ltd
Atul Auto Ltd
Nahar Spinning Mills Ltd
APL Apollo Tubes Ltd
Pokarna Ltd
Sun Pharmaceutical Industries Ltd
Cyient Ltd
09
Arihant Superstructures Ltd
Multi Commodity Exchange of India Ltd
Mold-Tek Packaging Ltd
Mold-Tek Technologies Ltd
Byke Hospitality Ltd/The
AK Capital Services Ltd
J Kumar Infraprojects Ltd
AIA Engineering Ltd
Frontline Securities Ltd
HT Media Ltd
KCP Sugar and Industries Corp Ltd
LT Foods Ltd
DHP India Ltd
PC Jeweller Ltd
NCL Industries Ltd
FIEM Industries Ltd
Beekay Steel Industries Ltd
Comfort Intech Ltd
Choice International Ltd
Diana Tea Co Ltd
10
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Religare Morning Digest
September 8, 2016
Corporate Action Calendar— September 2016 (Acquisition)
Date Target Company Acquirer Company
9/6/2016 ADCC Infocad Ltd Private Investor
9/7/2016 Aayush Food & Herbs Ltd Private Investor
9/8/2016 Pervasive Commodities Ltd Enigma Merchants LLP
9/9/2016 Excel Crop Care Ltd Sumitomo Chemical Co Ltd
Economic Calendar — September 2016
Sun Mon Tue Wed Thu Fri Sat
04 05
Nikkei India PMI Services
Nikkei India PMI Composite
06 07 08 09
Trade Balance
Local Car Sales
Imports YoY
Exports YoY
10
Corporate Action Calendar— September 2016 (Stock Split)
Sun Mon Tue Wed Thu Fri Sat
04 05
06
Chembond Chemicals Ltd
07 08
Bajaj Finance Ltd
Mishtann Foods Ltd
09 10
Corporate Action Calendar— September 2016 ( Stock Dividend )
Sun Mon Tue Wed Thu Fri Sat
04 05
06
Techno Electric & Engineering Co Ltd
07 08
Ultracab India Ltd
WIM Plast Ltd
Bajaj Finance Ltd
09 10
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Religare Morning Digest
September 8, 2016
Market Snapshot
Sectoral Indices Performance
Index Closing % Change % MTD % YTD
NIFTY Auto 10,360 0.11% 4.7% 25.5%
NIFTY Bank 20,407 -0.09% 3.1% 20.6%
NIFTY Energy 9,550 -0.43% -1.2% 11.3%
Nifty Financial Services 8,335 -0.61% 2.4% 18.1%
NIFTY FMCG 23,008 0.15% 1.8% 13.9%
NIFTY IT 10,500 -0.43% -0.4% -6.4%
NIFTY Media 2,952 -0.32% -0.5% 12.1%
NIFTY Metal 2,633 0.99% 2.6% 44.1%
NIFTY Pharma 11,633 0.18% 1.3% -2.8%
NIFTY PSU Bank 3,299 3.02% 6.0% 15.2%
NIFTY Realty 207 0.66% 0.9% 20.2%
Top Gainers - Nifty
Stock CMP (INR) % Chg % MTD % YTD
BHEL 159.65 15.56% 14.8% -5.6%
BANKBARODA 174.80 3.13% 7.3% 11.6%
ONGC 244.95 2.68% 3.7% 1.3%
SBIN 266.80 2.58% 5.7% 18.9%
ICICIBANK 278.15 2.00% 7.8% 6.4%
Top Losers - Nifty
Stock CMP (INR) % Chg % MTD % YTD
YESBANK 1,401.55 -2.72% 2.6% 93.1%
TATAPOWER 76.70 -2.29% -2.3% 13.0%
ASIANPAINT 1,177.20 -2.24% 1.7% 33.2%
HDFC 1,427.15 -2.12% 1.5% 12.9%
GAIL 395.95 -1.80% 3.1% 5.6%
Bulk Deals - NSE
Security Name Client Name Buy/Sell Quantity Price Value (in Cr.)
Jubilant Foodworks Limite MORGAN STANLEY MAURITIUS COMPANY LTD SELL 430845 1083.6
7 46.69
Signet Industries Limited PRERNA SETHI SELL 1760771 36.54 6.43
Lakshmi Energy and Foods PRERNA SETHI BUY 1170209 48.85 5.72
Aptech Limited RAJESHKUMAR JHUNJHUNWALA BUY 250001 142.71 3.57
Aptech Limited ADROIT FINANCIAL SERVICES PRIVATE SELL 217573 144.15 3.14
Aptech Limited ADROIT FINANCIAL SERVICES PRIVATE BUY 217573 143.91 3.13
Lakshmi Energy and Foods ASHROJ CREDIT INDIA PRIVATE LIMITED SELL 652763 47.45 3.10
Signet Industries Limited PRERNA SETHI BUY 614847 39.66 2.44
MBL Infrastructures Ltd PRS SHARES & FINANCE PVT LTD BUY 300000 62.1 1.86
Lakshmi Energy and Foods ASHROJ CREDIT INDIA PRIVATE LIMITED BUY 342617 47.95 1.64
Delivery Spurt stocks
Stock Name Day's del. Vol. Del. Vol. Price
Religare Enterp. 730,478 8130% 4.73%
Shrenuj & Co. 406,739 4281% 2.33%
Automotive Ax- 101,038 2473% 8.04%
Godfrey Phillips 106,607 1327% 3.51%
Chola- 391,549 1094% 0.36%
Gammon Infra. 3,515,621 1006% -4.90%
Supreme Infra. 224,521 999% 1.67%
Guj Inds. Power 489,544 859% 3.25%
B H E L 13,968,836 847% 15.56%
Simplex Infra 328,993 830% 3.15%
*Bulk deals data as on September 6, 2016
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Religare Morning Digest
September 8, 2016
Current Portfolio and Performance Summary as on 7th September’16
Stock Sector Entry Date Weight Reco price (`) CMP (`)
Bajaj Corp Consumer Goods May 13, 2016 9.3% 393 406
Reliance Industries Energy May 27, 2016 9.4% 970 1,018
Vinati Organics Chemicals June 28, 2016 9.8% 544 583
Magma Fincorp Financial Services June 30, 2016 8.5% 109 100
Sun Pharmaceutical
Industries Pharma July 15, 2016 9.5% 771 779
Apollo Hospitals
Enterprises Healthcare Services July 29, 2016 10.0% 1,362 1,377
Emami Consumer Goods August 3, 2016 10.4% 1,151 1,210
Castrol India Energy August 5, 2016 10.8% 425 467
Indiabulls Housing
Finance Financial Services August 8, 2016 10.0% 808 821
Cash 12.3%
Total Total 100%
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Religare Morning Digest
September 8, 2016
Historical Performance as on 7th September’16
Performance Matrix 1-Month 3-Month 6-Month 1-Year Since Inception
Religare Alpha 1.4% 10.4% 22.5% 14.1% 29.6%
Nifty 2.7% 7.9% 19.1% 16.0% 13.1%
Outperformance -1.3% 2.5% 3.3% -1.9% 16.5%
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Religare Morning Digest
September 8, 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
September 8, 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
September 8, 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]
Copyright in this document vests exclusively with RSL. This information should not be reproduced or redistributed or passed on directly or indirectly in any form to any
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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.