Religare Morning Digest - religareonline.com Morning Digest October 3, 2017 Nifty Outlook ... Force...

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Religare Morning Digest

October 3, 2017

Nifty Outlook

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

NIFTY 9880 10000 9700

Nifty ended marginally higher amid volatility, indicate a pause after the recent sell-off. It opened gap up and gradually advanced as the day progressed, but selling pressure in last hour eliminated almost all the gains. Mixed bias was witnessed on sectoral front wherein auto, metal and realty gained traction while FMCG, IT and PSU banking remained under pressure.

Markets are currently dealing with several issues and we feel further correction is inevitable. However, the pace of decline could be gradual from hereon but that would be more painful for the traders. We suggest continuing with sell on rise approach and prefer index majors for short term trades.

Sectors to watch

Sector Name Outlook

AUTO STABLE

ENERGY STABLE

REALTY WEAK

News

Religare Super Ideas**

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

Category Amt. MTD FYTD

FII -5328 -22423 -47791

DII 5197 18961 60008

NO OF CON-

TRACTS

TURNOVER IN CR

IDXFUTS 205405 16630

IDXOPT 3222971 275633

STKFUTS 567995 42700

Derivative Ideas **

Zydus Cadila has received the final approval from the US Food and Drug Administration to market Doxycycline tablets USP in strengths of 50 mg, 75 mg, 100 mg and 150 mg. It will be manufactured at group's formulations manufacturing facility at Pharma SEZ, Ahmedabad.

Shreyas Shipping & Logistics rose after the company said it signed memorandum of agreement for acquiring one multipurpose vessel and one container vessel. It has signed two memorandum of agreement for acquisition of one multipurpose vessel of about 650 teus and one container vessel of 4200 teus respectively. The delivery of both the vessels is expected by mid-October 2017.

Hindustan Construction Co Ltd rose after Lavasa Corp. said its lenders have decided to convert part of their loans into equity as part of debt restructuring along with fresh fund infusion from strategic investors to complete its stuck township project near Pune in Maharashtra.

*FII & DII data as on 28th September 2017

Scrip Buy/Sell CMP Initiation

Range SL* Target

- - - - - -

Instrument B/S Lot INITIATION

RANGE SL

TAR-GET

- - - - - -



October 3, 2017

Religare Investment Calls

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

Cigniti Technologies Ltd. 5-Oct-16 419 538 28.3% 237.6

Fiem Industries 26-Dec-16 1,089 1,315 20.8% 909.9

Greenply Industries 3-Feb-17 268 304 13.4% 273.3

Arman Financial Services 22-Feb-17 226 340 50.0% 211.2

Indo Count Industries Ltd. 17-May-17 198 240 21.2% 99.0

SML Isuzu 25-May-17 1,247 1,525 22.3% 883.6

APL Apollo Tubes 12-July-17 1,596 2,352 47.4% 1,694.2

Force Motors 27-July-17 4,104 4,897 19.3% 3,764.1

Zee Entertainment Enterprises 28-July-17 539 592 9.8% 520.1

CRISIL 01-Aug-17 1,858 2,419 30.2% 1,820.7

LIC Housing Finance 09-Aug-17 681 748 9.8% 627.4

Eicher Motors Ltd 09-Aug-17 31,630 40,467 27.9% 31,213.3

Wonderla Holidays 17-Aug-17 339 430 26.8% 345.8

The Byke Hospitality 17-Aug-17 195 242 24.1% 172.6

Century Plyboards 18-Aug-17 251 307 22.3% 249.3

NRB Bearings 18-Aug-17 118 139 17.8% 118.9

Srikalahasthi Pipes Ltd 18-Aug-17 362 416 14.8% 299.9

Avanti Feeds 21-Aug-17 1,921 2,240 16.6% 2,029.7

Jain Irrigation Systems Ltd. 23-Aug-17 93 125 34.4% 94.7

Mold-Tek Packaging Limited 31-Aug-17 301 340 13.0 % 289.7

Swaraj Engines Ltd 31-Aug-17 1,985 2,201 10.9% 2,032.7

Mayur Uniquoters Ltd 01-Sept-17 360 460 27.7% 364.2

Castrol India 01-Sept-17 389 426 9.6% 356.6

Symphony Ltd 07-Sept-17 1,297 1,632 25.8% 1,353.6

Garware Wall Ropes Ltd 12-Sept-17 920 1,083 17.7% 879.8

Talwalkars Better Value Fitness 18-Sept-17 288 346 20.0% 270.6

Tata Communications 18-Sept-17 708 822 16.1% 685.3

GNA Axles 29-Sept-17 310 418 34.8% 314.3



October 3, 2017

Corporate Action Calendar — October 2017 (Stock Dividend)

Sun Mon Tue Wed Thu Fri Sat

01 02 03

Panama Petrochem Ltd

04 05

Shivalik Bimetal Controls Ltd

06 07

Corporate Action Calendar — October 2017 (Stock Split)


01 02 03 04 05

Jamna Auto Industries Ltd

06 07

Corporate Action Calendar — October 2017 (Stock Buyback)


01 02 03 04 05

06

Vinati Organics Ltd

07

Economic Calendar — October 2017


01 02 03

Nikkei India PMI Mfg

Eight Infrastructure Industries

04

RBI Repurchase Rate

RBI Reverse Repo Rate

RBI Cash Reserve Ratio

05

Nikkei India PMI Services

Nikkei India PMI Composite

06 07



October 3, 2017

Current Portfolio and Performance Summary as on 29th September’17

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

Amara Raja Batteries Auto March 22, 2017 9.2% 868 709

RBL Bank Financial Services July 11, 2017 9.5% 532 507

Muthoot Finance Financial Services July 26, 2017 10.2% 482 475

Talwalkars Better value

Fitness Health Fitness July 27, 2017 9.4% 302 271

Va Tech Wabag Infrastructure August 16, 2017 9.4% 636 590

Nilkamal Plastic Products August 17, 2017 9.4% 1,682 1,550

PPAP Automotive Auto Ancillaries September 14, 2017 9.6% 383 357

Can Fin Homes Financial Services September 19, 2017 11.2% 2,859 2,655

CARE Financial Services September 20, 2017 10.2% 1,493 1,363

Cash 11.9%

Total 100%



October 3, 2017

Historical Performance as on 29th September’17

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

Religare Alpha -0.2% 3.3% 3.0% 32.3%

Nifty 3.0% 6.7% 13.9% 24.2%

Outperformance -3.2% -3.4% -10.9% 8.2%



October 3, 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.



October 3, 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]

Team Members



October 3, 2017

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