Religare Morning Digest · Tech Mahindra reported a 9.5% decline in net profits to Rs 796.5 Cr from...

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Religare Morning Digest

August 2, 2016

Nifty Outlook

Nifty ended flat amid excessive volatility on Monday, tracking prevailing anxiety over the

GST bill and mixed earning announcements. After robust start, it tested 8700 in early trades

but nervousness ahead of crucial meeting on GST bill between the government and lead

opposition inched higher as session progressed, which gradually pushed the index lower.

Also, disappointing results from select index majors mainly from private banks and infra

space added to the pressure.

It would not be wrong to say that markets have somewhat priced in the expected clearance

of the GST bill and thus favorable outcome might not trigger a strong surge ahead. On flip

side, if things turn otherwise, decline could be steep, but not deeper. In short, we expect

consolidation within 8500-8700 in Nifty with overall bias on the positive side. So, traders

should plan their trades accordingly and keep a balanced portfolio.

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

NIFTY 8640 9000 8500

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 -14 10871 26730

DII 148 -6054 -3415

NO OF CON-

TRACTS

TURNOVER IN CR

IDXFUTS 260557 17928

IDXOPT 2928979 204671

STKFUTS 625156 44037

Maruti Suzuki reported a 13.9% increase in monthly domestic sales to 1,25,778 units in July

2016 as compared to 1,10,405 units in July 2015. Exports grew marginally 11,338 units from

11,307 units. Sales of utility vehicles accounted for the increase as sales figures grew more

than two folds to 17,382 units from 6,916 units. Shares went up by 2.3%.

The Nikkei India Manufacturing Purchasing Managers’ Index rose to 51.8 in July 2016 as

compared to 51.7 in June 2016. The index stood above the 50 mark for the seventh

consecutive month indicating a steady growth in the manufacturing economy.

Tech Mahindra reported a 9.5% decline in net profits to Rs 796.5 Cr from Rs 880.6 Cr on a

QoQ basis. Revenue grew merely by 0.5% to Rs 6,921 Cr from Rs 6,883.7 Cr. Bottom-line was

impacted by lower operational income.

Derivative Ideas **

Instrument B/S Lot INITIATION

RANGE SL TARGET

WIPRO 560

AUGUST CE BUY 1000 8-9 6 15

*FII & DII data as on 29th July 2016

Scrip Buy/Sell CMP Initiation

Range SL* Target

APOLLOTYRE BUY 162.95 162-163 157 175

TORNTPHARM BUY 1458.10 1450-1460 1400 1600

**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.



August 2, 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 451.45 560 9-12 Months 419

WIPRO added 4.6% of open interest as fresh long

positions. It has also created a buying pivot on

intraday charts with noticeable rise in volumes. We

expect it to rally till 575 in short term.

Strategy: BUY WIPRO 560 CE BETWEEN 8-9, SL 6,

TARGET 15.

Derivative Ideas

Apollo Tyres Limited (APOLLOTYRE) Torrent Pharmaceuticals Ltd

(TORNTPHARM)

APOLLOTYRE has recovered sharply from recent

low around 140 and is consolidating above its 200

EMA from past couple of sessions. We believe, its

200 EMA which is placed at 161 will act as

immediate support and limit down side move.

TORNTPHARM is among better placed pharma

stocks and has multiplied investors wealth in past

as well. At current juncture, it posted breakout

from declining trend line on weekly chart and is set

for up move towards 1600 in near-term. Hence,

one can initiate fresh longs in mentioned range.



August 2, 2016

Result Calendar— August 2016

Sun Mon Tue Wed Thu Fri Sat

31 01

BLUE STAR LTD.

BOMBAY WIRE ROPES LTD.

CELEBRITY FASHIONS LTD.

CENTURY ENKA LTD.

DFM FOODS LTD.

DR.AGARWAL'S EYE HOSPITAL

LTD.

NITCO LTD.

PIRAMAL ENTERPRISES LTD.

ROSE INVESTMENTS LTD.

SACHETA METALS LTD.

SANGAM ADVISORS LTD.

Shyam Century Ferrous Ltd

Star Ferro and Cement Ltd

SHAH FOODS LTD.

Shreenath Industrial Invest-

ment Company Ltd

SIMPLEX CASTINGS LTD.

SKM EGG PRODUCTS EXPORT

(INDIA) LTD.

STEL HoldingsÂ Limited

SUNDARAM BRAKE LININGS

LTD.

SUNIL AGRO FOODS LTD

02

CENTURY PLYBOARDS (I)

LTD.

GUJARAT SIDHEE CEMENT

LTD.

INDIAN BANK

JHS SVENDGAARD LABOR-

ATORIES LTD.

JINDAL HOTELS LTD.

JM FINANCIAL LTD.

Kashiram Jain and

Company Ltd

SRI LAKSHMI SARASWATHI

TEXTILES (ARNI) LTD.

TATA INVESTMENT COR-

PORATION LTD.

TCI DEVELOPERS LTD.

TCI INDUSTRIES LTD.

TORRENT POWER LTD.

UFO Moviez India Ltd

UGAR SUGAR WORKS LTD.

Veto Switchgears and Ca-

bles Ltd

VOLTAS LTD.

WIM PLAST LTD

Wonderla Holidays Ltd

03

ACROW INDIA LTD.

BAJAJ GLOBAL LTD.

BATA INDIA LTD.

BERGER PAINTS INDIA

LTD.

B.L.KASHYAP AND SONS

LTD.

CADILA HEALTHCARE LTD.

DISHMAN PHARMACEUTI-

CALS & CHEMICALS LTD.

EMAMI LTD.

ENTERTAINMENT NET-

WORK (INDIA) LTD.

HCL TECHNOLOGIES LTD.

INCON ENGINEERS LTD.

INDO TECH TRANSFORM-

ERS LTD.

KAJARIA CERAMICS LTD.

KALYANI FORGE LTD.

MARUTI SECURITIES LTD.

MEHTA HOUSING FI-

NANCE LTD.

Orient Cement Ltd

The Ramco Cements Lim-

ited

04

ARVIND LTD.

BHARAT GEARS LTD.

CUMMINS INDIA LTD.

DATAMATICS GLOBAL

SERVICES LTD.

FORTIS HEALTHCARE

LTD.

GATI LTD.

HINDUSTAN MEDIA VEN-

TURES LTD.

Kaya Ltd

KIRLOSKAR OIL ENGINES

LTD.

SCOOTERS INDIA LTD.

Sharda Cropchem Ltd

SHARDUL SECURITIES

LTD.

SIEMENS LTD.

Snowman Logistics Ltd

TANLA SOLUTIONS LTD.

TATA POWER CO.LTD.

THIRDWAVE FINANCIAL

INTERMEDIARIES LTD.

THOMAS COOK (INDIA)

LTD.

05

AEGIS LOGISTICS LTD.

BHARAT ELECTRONICS LTD.

BHARAT FORGE LTD.

BOMBAY POTTERIES & TILES

LTD.

CREDIT ANALYSIS AND RE-

SEARCH LTD.

CENTRUM CAPITAL LTD.

CONTROL PRINT LTD.

HINDUSTAN MOTORS LTD.

HINDUSTAN ORGANIC CHEMI-

CALS LTD.

HT MEDIA LTD.

MARSONS LIMITED

ONIDA SAKA LTD.

PARAMOUNT COMMUNICA-

TIONS LTD.

PFIZER LTD.

Quick Heal Technologies Ltd

SML ISUZU LIMITED

SRS Finance Ltd

TUNI TEXTILE MILLS LTD.

UNITED LEASING & INDUS-

TRIES LTD.

06

ANDHRA BANK

INDBANK MERCHANT

BANKING SERVICES LTD.

IND BANK HOUSING LTD.

Jagran Production Limited

J.K.CEMENT LTD.

REPCO HOME FINANCE

LTD.

REPRO INDIA LTD.

ROSELABS FINANCE LTD.

SAMBANDAM SPINNING

MILLS LTD.

SANDUR MANGANESE &

IRON ORES LTD.

SP CAPITAL FINANCING

LTD.

SREI INFRASTRUCTURE

FINANCE LTD.

SRI NACHAMMAI COTTON

MILLS LTD.

SUMEDHA FISCAL SER-

VICES LTD.

SURAJ PRODUCTS LTD.

TATA COFFEE LTD.

TRIOCHEM PRODUCTS



August 2, 2016

Corporate Action Calendar— August 2016 (Dividend)

Sun Mon Tue Wed Thu Fri Sat

31 01

ALEMBIC LTD.

APOLLO TYRES LTD.

EMAMI PAPER MILLS LTD.

LA OPALA RG LTD.

HINDOOSTAN MILLS LTD.

Symphony Limited

WIRES & FABRIKS (SA) LTD.

02

ACC LTD.

ASIAN HOTELS (EAST) LTD.

AMBUJA CEMENTS LTD.

AVT NATURAL PRODUCTS LTD.

DCM SHRIRAM INDUSTRIES

LTD.

DHUNSERI INVESTMENTS

LTD.

DISA INDIA LTD.

GARWARE-WALL ROPES

LTD.

HIKAL LTD.

HONEYWELL AUTOMA-

TION INDIA LTD.

KHAITAN CHEMICALS &

FERTILIZERS LTD.

MAKERS LABORATORIES

LTD.

NITIN ALLOYS GLOBAL

LTD.

PAUSHAK LTD.

PRIME URBAN

DEVELOPMENT INDIA LTD.

SHREYANS INDUSTRIES

LTD.

TATA CHEMICALS LTD.

TIMKEN INDIA LTD.

Ujjivan Financial Services

Ltd

03

BASF INDIA LTD.

BENARES HOTELS LTD.

CLARIANT CHEMICALS

(INDIA) LTD.

Dhunseri Tea & Industries

Ltd

GLENMARK

PHARMACEUTICALS LTD.

GUJARAT PIPAVAV PORT LTD.

GRANULES INDIA LTD

HONDA SIEL POWER

PRODUCTS LTD.

INDO BORAX &

CHEMICALS LTD.

KAIRA CAN CO.LTD.

MAFATLAL INDUSTRIES LTD.-$

MINDA INDUSTRIES LTD.

MINDTECK (INDIA) LTD.

MRF LTD.

National Fittings Limited

PAGE INDUSTRIES LTD.

SAFARI INDUSTRIES

(INDIA) LTD.

SAKSOFT LTD.

ZODIAC CLOTHING

CO.LTD.

04

ABM KNOWLEDGEWARE

LTD.

ASAHI INDIA GLASS LTD.

AVANTI FEEDS LTD

05 06



August 2, 2016

Market Snapshot

Sectoral Indices Performance

Index Closing % Change % MTD % YTD

NIFTY Auto 9,471 0.71% 6.8% 14.7%

NIFTY Bank 18,953 -0.65% 5.7% 12.0%

NIFTY Energy 9,312 -0.17% 7.0% 8.5%

Nifty Financial Services 7,838 -0.76% 7.1% 11.0%

NIFTY FMCG 22,229 -0.28% 2.9% 10.1%

NIFTY IT 10,913 -0.20% -1.9% -2.7%

NIFTY Media 2,815 2.23% 6.9% 6.9%

NIFTY Metal 2,423 -0.73% 11.0% 32.6%

NIFTY Pharma 11,697 0.70% 5.0% -2.2%

NIFTY PSU Bank 2,863 -1.15% 5.1% 0.0%

NIFTY Realty 207 -0.14% 3.6% 20.2%

Top Gainers - Nifty

Stock CMP (INR) % Chg % MTD % YTD

HCLTECH 780.45 3.65% 3.7% -8.7%

TCS 2,708.25 3.40% 3.4% 11.1%

TATASTEEL 364.85 2.76% 2.8% 40.4%

WIPRO 557.70 2.32% 2.3% -0.4%

HINDALCO 136.60 2.28% 2.3% 61.2%

Top Losers - Nifty

Stock CMP (INR) % Chg % MTD % YTD

ICICIBANK 249.50 -5.10% -5.1% -4.5%

LT 1,493.70 -4.18% -4.2% 17.1%

BHEL 141.85 -2.78% -2.8% -16.1%

BANKBARODA 147.50 -2.77% -2.8% -5.8%

ADANIPORTS 228.55 -1.66% -1.7% -12.4%

Bulk Deals - NSE

Security Name Client Name Buy/Sell Quantity Price Value (in Cr.)

Jaiprakash Associates Lim ADROIT SHARE & STOCK BROKER PVT. BUY 14648501 12.57 18.41

Jaiprakash Associates Lim ADROIT SHARE & STOCK BROKER PVT. SELL 14376501 12.6 18.11

Jaiprakash Associates Lim PROGRESSIVE CONSULTANTS BUY 14332118 12.56 18.00

Jaiprakash Associates Lim PROGRESSIVE CONSULTANTS SELL 14332118 12.55 17.99

Upper Ganges Sug & Ind N.K. SECURITIES SELL 192860 499.25 9.63

Upper Ganges Sug & Ind N.K. SECURITIES BUY 192860 498.98 9.62

Dwarikesh Sugar Industrie GANESH KUMAR BUY 131323 268.32 3.52

Upper Ganges Sug & Ind PROGRESSIVE CONSULTANTS SELL 63475 492.6 3.13

Upper Ganges Sug & Ind PROGRESSIVE CONSULTANTS BUY 63475 490.59 3.11

GeeCee Ventures Limited KOKAN SHUHABUDDIN SHAHNAZ SELL 170000 174.95 2.97

Delivery Spurt stocks

Stock Name Day's del. Vol. Del. Vol. Price

Atul 804,164 3131% 0.01%

Magma Fincorp 1,209,830 1311% 5.16%

Trent 127,835 1172% 1.44%

Guj Alkalies 355,129 987% 5.12%

Muthoot Finance 2,118,817 895% 7.14%

Sundaram Fi- 186,634 766% -1.21%

Mindtree 855,770 722% 3.97%

Sun TV Network 2,887,838 685% 5.39%

Bajaj Fin. 170,732 653% 8.23%

Castrol India 1,378,001 630% -0.11%

*Bulk deals data as on July 29, 2016

*Sectoral Indices data as on July 29, 2016



August 2, 2016

Current Portfolio and Performance Summary as on 1st August’16

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

Dewan Housing Finance

Corporation Financial Services Feb 10, 2016 14.9% 193* 223

Bajaj Corp Consumer Goods May 13, 2016 8.7% 393 378

Reliance Industries Energy May 27, 2016 9.5% 970 1,010

Vinati Organics Chemicals June 28, 2016 9.4% 544 554

Magma Fincorp Financial Services June 30, 2016 9.6% 109 112

Sun Pharmaceutical

Industries Pharma July 15, 2016 10.3% 771 836

Apollo Hospitals

Enterprises Healthcare Services July 29, 2016 10.1% 1,362 1,374

Cash 27.4%

Total Total 100%

*Weighted average price

*7.5% DHFL was bought at 237

*7.5% DHFL was bought at 163



August 2, 2016

Historical Performance as on 1st August’16

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

Religare Alpha 4.82% 13.89% 18.55% 5.45% 27.94%

Nifty 3.70% 10.02% 15.84% 1.22% 9.54%

Outperformance 1.12% 3.87% 2.71% 4.23% 18.39%



August 2, 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.



August 2, 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



August 2, 2016

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No

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Religare Morning Digest · Tech Mahindra reported a 9.5% decline in net profits to Rs 796.5 Cr from...

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