Religare Morning Digest Better Value Fitness Ltd. (TBVFL) reported a lower than estimated net...

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Religare Morning Digest

December 26, 2017

Nifty Outlook

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

NIFTY 10300 10500 10000

Nifty resumed its uptrend after two days of pause and tested the psychological mark of 10500 for the first time. Firm Asian markets triggered upbeat start which further strengthened with noticeable buying in index majors. Among the sectoral pack, IT topped the gainer list and others also posted modest rise.

Nifty has potential to test much higher levels, considering the possibility of fresh surge in energy, banking and IT space. It’s a “buy on dips” market and traders should align their positions accordingly. In short, we advise focusing on stock selection while maintaining positive bias.

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 -384 -7757 -78490

DII 1575 7746 83077

NO OF CON-

TRACTS

TURNOVER IN CR

IDXFUTS 203436 17120

IDXOPT 4127221 355899

STKFUTS 989387 71814

Derivative Ideas **

Tata Consultancy Services (TCS) bagged a $2.25bn outsourcing contract from Nielsen, a television rating measurement firm. The partnership, signed in October this year, is a renewal of TCS' existing collaboration with Nielsen.

Eclerx Services ended higher by nearly 10% after news that the company has got approval from board of directors for buyback of upto 12.9 lac equity shares (representing about 3.23% of the total paid up equity share capital of the company) at Rs 2,000 each.

Steel Strips Wheels surged 3% on news that the company has bagged an exports order for supply of steel wheels for Egyptian passenger car market. This order covers supplies of ~32,500 steel wheels, which will be shipped from the company’s Dappar plant from next month onwards.

*FII & DII data as on 21st December 2017

Scrip Buy/Sell CMP Initiation

Range SL* Target

GODREJIND BUY 604.65 595-600 585 635

IOC BUY 410.25 405-408 400 422

Instrument B/S Lot INITIATION

RANGE SL

TAR-GET

BERGEPAINT BUY

FUTS 2200 258-260 251 278

**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.



December 26, 2017

Investment Pick - Talwalkars Better Value Fitness

Talwalkars Better Value Fitness Ltd. (TBVFL) reported a lower than estimated net revenue growth of 10.1% YoY in Q2FY18, while PAT growth was more or less in

line at 25.3% YoY, aided by higher other income and lower effective tax rate. Driven by cost efficiencies, EBITDA margins expanded 284bps YoY to 61.7%, which was encouraging.

We are upbeat on TBVFL's long term growth prospects given low penetration of Indian fitness industry and company's efforts towards steady gym additions and

increasing share of value added services. We maintain BUY with target price of Rs 346.

Scrip CMP Target Duration Recommendation Price

TALWALKARS 329.45 346 9-12 Months 317

BERGEPAINT added around 3.50% 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 BERGEPAINT Futs as per below

levels.

Strategy: Buy BERGEPAINT Futs between 258-260,

SL– 251, TGT– 278.

Derivative Ideas Religare Super Ideas

Godrej Industries Limited (GODREJIND) Indian Oil Corporation Limited (IOC)

After a marginal profit booking from its record

high, GODREJIND has swiftly rebounded from its

support zone of moving averages and has formed a

fresh buying pivot on chart. Considering its chart

pattern, we expect strong surge ahead. Traders are

advised to initiate fresh longs in the given range.

Post rebound from its support zone, IOC has been

consolidating in a narrow range for past one week

or so on daily chart. Indications are in the favor of

fresh breakout in near term thus we suggest traders

to utilize this phase and start accumulating.



December 26, 2017

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% 121.0

SML Isuzu 25-May-17 1,247 1,525 22.3% 919.2

APL Apollo Tubes 12-July-17 1,596 2,352 47.4% 1,962.4

CRISIL 01-Aug-17 1,858 2,419 30.2% 1,872.6

LIC Housing Finance 09-Aug-17 681 748 9.8% 567.8

Eicher Motors Ltd 09-Aug-17 31,630 40,467 27.9% 30,250.8

Wonderla Holidays 17-Aug-17 339 430 26.8% 366.4

The Byke Hospitality 17-Aug-17 195 242 24.1% 172.9

Tata Communications 18-Sept-17 708 822 16.1% 679.0

Century Plyboards 07-Nov-17 294 312 6.1% 336.9

Kajaria Ceramics Ltd. 09-Nov-17 690 900 30.4% 724.2

Srikalahasthi Pipes Ltd 10-Nov-17 362 457 26.3% 406.0

Force Motors 13-Nov-17 3,328 4,642 39.5% 3,589.0

Castrol India Ltd 15-Nov-17 198 223 12.5% 201.3

Minda Corporation 15-Nov-17 168 217 29.1% 198.0

Mold-Tek Packaging Limited 15-Nov-17 316 374 18.4% 330.3

Manpasand Beverages 17-Nov-17 408 474 16.2% 437.4

Sutlej Textiles 17-Nov-17 96 116 21.2% 96.7

Swaraj Engines Ltd 21-Nov-17 1,888 2,252 19.3% 2,031.2

Bharat Electronics Ltd. 22-Nov-17 177 217 22.6% 188.5

Asian Granito India Ltd. 29-Nov-17 506 642 26.9% 539.7

Nilkamal Ltd. 29-Nov-17 1,791 2,097 17.1% 1,837.9

Garware Wall Ropes Ltd 1-Dec-17 914 1,083 18.4% 962.1

Fiem Industries 6-Dec-17 915 1,315 43.7% 1,015.4

Talwalkars Better Value Fitness 20-Dec-17 317 346 9.1% 329.5



December 26, 2017

Current Portfolio and Performance Summary as on 22nd December’17

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

Amara Raja Batteries Auto March 22, 2017 10.0% 868 835

RBL Bank Financial Services July 11, 2017 8.9% 532 515

Muthoot Finance Financial Services July 26, 2017 9.2% 482 463

Talwalkars Better value

Fitness Health Fitness July 27, 2017 10.5% 302 329

Va Tech Wabag Infrastructure August 16, 2017 9.1% 636 618

Nilkamal Plastic Products August 17, 2017 10.2% 1,682 1,838

Can Fin Homes Financial Services September 19, 2017 9.7% 572 496

CARE Financial Services September 20, 2017 9.2% 1,493 1,337

Tejas Networks Telecom Services November 3, 2017 9.7% 387 390

Cash 13.6%

Total 100%



December 26, 2017

Historical Performance as on 22nd December’17

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

Religare Alpha 3.5% 6.9% 24.4% 43.7%

Nifty 3.7% 9.6% 31.5% 33.1%

Outperformance -0.2% -2.6% -7.1% 10.6%



December 26, 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.



December 26, 2017

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]

Suhanee Shome [email protected]

Team Members



December 26, 2017

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[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 : ……………………………………………………………………………………………………………………

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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.

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