Religare Morning Digest 8 Religare Morning Digest January 1, 2018----

1 Disclaimer: http://www.religareonline.com/research/Disclaimer/Disclaimer_RSL.html

Religare Morning Digest

January 1, 2018

Nifty Outlook

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

NIFTY 10300 11000 10400

Markets ended the final trading session of the calendar year on positive note, thanks to favorable local cues. Sentiment boosted on the news that the SEBI has paved way for exchanges to facilitate trading in both equity and commodity segment. Also, they’ve decided to relax the entry norms for Foreign Portfolio Investors (FPI). Interestingly, the report that fiscal deficit has surpassed the government’s FY18 target, failed to dampen the sentiment.

It was an exceptional year for equity markets as the benchmark gained nearly 29%, with noticeable contribution from the domestic investors. We’re hopeful that this momentum will extend further, with the earning expectations turning into reality. We advise participants to focus on themes now as we’re seeing rotational buying across the board.

Sectors to watch

Sector Name Outlook

AUTO STABLE

ENERGY STABLE

FMCG STABLE

News

Religare Super Ideas**

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

Category Amt.** MTD FYTD

FII 563 -6958 4923

DII** -774 7772 83013

NO OF CON-

TRACTS

TURNOVER

IN CR

IDXFUTS 155173 13298

IDXOPT 2011638 183258

STKFUTS 711596 53367

Derivative Ideas **

Techno Electric & Engineering Company, a leading EPC player in the power sector, has received an order worth USD 32.22mn (~Rs.206cr) from The Afghanistan Breshna Sherkat, Kabul, Afghanistan for design, supply and construction of 500kv substation. The project is funded by Asian Development Bank (ADB).

Cadila Healthcare received final approval from the USFDA to market Clomipramine Hydrochloride Capsules USP in strengths of 25 mg, 50 mg and 75 mg. The drug is used to treat obsessive compulsive disorder which is characterized by uncontrollable, re-occurring thoughts (obsessions) and behaviors (compulsions).

Aarti Industries announced that it has signed Rs.10,000cr multi-year deal with a global chemical company. The contract entails supply of a high value speciality chemical intermediate over a period of 20 years. The supplies are expected to commence from 2020 with an estimated revenue generation of Rs.10,000cr over the contract period.

**Provisional data as on 28th December 2017

Scrip Buy/Sell CMP Initiation SL* Target

GRANULES BUY 137.45 135-137 132 146

PETRONET BUY 254.75 252-254 246 268

Instrument B/S Lot INITIATION

RANGE SL

TAR-

GET

KAJARIACER BUY

740C

E

800 14-16 9 32

**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



January 1, 2018

Investment Pick - Time Technoplast

Time Technoplast has a dominant position in the rigid packaging materials industry in 9 countries across South East Asia and Middle East. It is a leading manufacturer of polymer

products like drums, barrels, jerry cans and pails used in various packaging requirements. It caters to varied sectors like chemicals, paints & pigments, food & beverage, petroleum,

industrial coatings, agricultural, etc.

Time Technoplast is likely to report superior earnings growth driven by product portfolio with higher room for market penetration, market leadership, focus on innovation and

value-added products. We expect Revenue and Net profit to increase at CAGR of 16% and 27.2% respectively over FY17-20E. We recommend a Buy on the stock with a target price

of Rs. 264.

Scrip CMP Target Duration Recommendation Price

TIMETECHNO 207.65 264 9-12 Months 206

KAJARIACER added around 3% in open interest as long

buildup was seen in it with some delivery based buying in

previous session. Current chart pattern too indicate fresh

surge in its price. We suggest buying KAJARIACER Options

as per below levels .

Strategy: Buy KAJARIACER 740CE between 14-16, SL– 9,

TGT– 32.

Derivative Ideas Religare Super Ideas

Granules India Limited (GRANULES) Petronet LNG Limited (PETRONET)

Post breakout from its broader range, GRANULES has

been consolidating for last three trading sessions and

likely to resume the trend again in near future. We

suggest traders to utilize this phase and start

accumulating fresh longs in the given level.

PETRONET has formed a fresh buying pivot on daily chart,

after consolidating in a narrow range above its medium

term moving averages. We advise traders to initiate fresh

long as per the mentioned levels.



January 1, 2018

Religare Investment Calls

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

Indo Count Industries Ltd. 17-May-17 198 240 21.2% 124.0

SML Isuzu 25-May-17 1,247 1,525 22.3% 912.6

APL Apollo Tubes 12-July-17 1,596 2,352 47.4% 1,983.8

CRISIL 01-Aug-17 1,858 2,419 30.2% 1,874.6

LIC Housing Finance 09-Aug-17 681 748 9.8% 563.5

Eicher Motors Ltd 09-Aug-17 31,630 40,467 27.9% 30,340.9

Wonderla Holidays 17-Aug-17 339 430 26.8% 359.0

The Byke Hospitality 17-Aug-17 195 242 24.1% 174.2

Tata Communications 18-Sept-17 708 822 16.1% 681.6

Century Plyboards 07-Nov-17 294 312 6.1% 339.3

Kajaria Ceramics Ltd. 09-Nov-17 690 900 30.4% 729.3

Srikalahasthi Pipes Ltd 10-Nov-17 362 457 26.3% 400.6

Force Motors 13-Nov-17 3,328 4,642 39.5% 3,691.5

Castrol India Ltd 15-Nov-17 198 223 12.5% 193.2

Mold-Tek Packaging Limited 15-Nov-17 316 374 18.4% 317.0

Manpasand Beverages 17-Nov-17 408 474 16.2% 438.0

Sutlej Textiles 17-Nov-17 96 116 21.2% 97.4

Swaraj Engines Ltd 21-Nov-17 1,888 2,252 19.3% 2,054.7

Bharat Electronics Ltd. 22-Nov-17 177 217 22.6% 182.2

Asian Granito India Ltd. 29-Nov-17 506 642 26.9% 576.4

Nilkamal Ltd. 29-Nov-17 1,791 2,097 17.1% 1,837.3

Garware Wall Ropes Ltd 1-Dec-17 914 1,083 18.4% 960.8

Fiem Industries 6-Dec-17 915 1,315 43.7% 1,009.3

Talwalkars Better Value Fitness 20-Dec-17 317 346 9.1% 318.9

Time Technoplast 28-Dec-17 206 264 28.2% 207.7



January 1, 2018

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

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

Amara Raja Batteries Auto March 22, 2017 10.1% 868 840

RBL Bank Financial Services July 11, 2017 8.8% 532 510

Muthoot Finance Financial Services July 26, 2017 9.4% 482 475

Talwalkars Better value Fit- Health Fitness July 27, 2017 10.3% 302 319

Va Tech Wabag Infrastructure August 16, 2017 9.0% 636 611

Nilkamal Plastic Products August 17, 2017 10.3% 1,682 1,837

Can Fin Homes Financial Services September 19, 2017 9.3% 572 473

CARE Financial Services September 20, 2017 9.2% 1,493 1,332

Tejas Networks Telecom Services November 3, 2017 9.9% 387 395

Cash 13.7% 1,000.00 1,000

Total 100%



January 1, 2018

Historical Performance as on 29th December’17

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

Religare Alpha 9.4% 7.6% 24.9% 42.9%

Nifty 7.8% 10.6% 30.0% 33.6%

Outperformance 1.6% -3.0% -5.1% 9.3%



January 1, 2018

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 based 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

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 invest-

ment 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.



January 1, 2018

Hitesh Agrawal [email protected]

Ajay Pasari, CFA [email protected]

Ajit Mishra [email protected]

Manoj M Vayalar [email protected]

Mehernosh Khurshed Panthaki [email protected]

Nirvi Ashar [email protected]

Rohit Khatri [email protected]

Suhanee Shome [email protected]

Team Members



January 1, 2018

Before you use this research report , please ensure to go through the disclosure inter-alia as required under Securities and Exchange Board of India (Research Analysts) Regulations, 2014 and

Research Disclaimer at the following link : http://old.religareonline.com/research/Disclaimer/Disclaimer_RSL.html

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 sep-arately]

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 other person or published, copied, in whole or in part, for any purpose, without prior written permission from RSL. We do not guarantee the integrity of any emails or attached files and are not responsi-ble for any changes made to them by any other person.

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.

http://old.religareonline.com/research/Disclaimer/Disclaimer_RSL.html

Religare Morning Digest 8 Religare Morning Digest January 1, 2018----

Documents

Transcript of Religare Morning Digest 8 Religare Morning Digest January 1, 2018----