Religare Morning Digest -...

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Religare Morning Digest

June 18, 2018

Nifty Outlook

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

NIFTY 10650 11000 10700

In yet another volatile trading session, the Indian equity benchmark indices ended Friday’s session on the flat note. Throughout the day, markets remained range bound and the Nifty index swung both ways touching intra-day high of 10,834 in first half and intra-day low of 10,755 in second half and finally ended flat at 10,818 levels. The broader market indices, BSE Midcap & Smallcap, underperformed the benchmark, to close with losses of 0.4% and 0.5%, respectively. Barring Healthcare and IT, which closed nearly 2% higher, selling pressure was witnessed among all the other sectorial indices. Capital Goods, Metals, Oil & Gas and Power remained the top losers. Amongst the global indices, both European and Asian markets traded on a mixed note.

We continue to remain cautious on the markets in the coming sessions. With lack of any fresh positive domestic triggers in the near term, volatility is likely to remain high with stock specific movement. Market participants will closely monitor global developments, especially in US, Europe and China. Any further correction should be considered as a good buying opportunity for investors in quality counters.

Sectors to watch

Sector Name Outlook

AUTO STABLE

IT STABLE

FMCG STABLE

News Religare Super Ideas**

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

Category Amt. MTD FYTD

FII** -1373 -6908 -25590

DII** 576 5922 30099

Derivative Ideas **

TCS announced that its board of directors has approved buy back up to 7.6 cr equity shares of the company, at a price of Rs 2,100 per share, for an aggregate amount not exceeding Rs 16,000 cr.

BL Kashyap & Sons won orders worth Rs 694 cr for development /re-development of Gomti Nagar Lucknow Railway Station and to do composite civil structure for building at Hyderabad worth Rs 360 cr and Rs 182 cr.

Dr. Reddy’s Laboratories Ltd has received final approval from the USFDA and is launching Buprenorphine & Naloxone sublingual film, a therapeutic equivalent generic version of Suboxone in US market.

**Provisional data as on 14th June 2018

Scrip Buy/Sell CMP Initiation

Range SL* Target

GODREJIND BUY 616.45 608-612 592 644

RELCAPITAL SELL

FUTS 422.05 425-427 435 405

Instrument B/S Lot INITIATION

RANGE SL

TAR-GET

RECLTD BUY 115P

E

6000 2-2.40 0.90 5.50

**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.

Trade Stats

NO OF CON-

TRACTS

TURNOVER IN CR

IDXFUTS 247872 22291

IDXOPT 4952088 465218

STKFUTS 863551 58033



June 18, 2018

Investment Pick - Wonderla Holidays Ltd.

Wonderla Holidays Ltd posted subdued performance for Q4FY18, on back of decline in footfalls. Net revenue declined by 7.5%, whereas EBITDA and PAT margin expanded to 27.8% and 6.7%, respectively driven by improved operational efficiency.

Demand is likely to improve in coming quarters due to drop in tickets price, adding of new rides in the amusement parks and by more food & beverage offerings. We maintain buy with revised target price of 377.

Scrip CMP Target Duration Recommendation Price

Wonderla Holidays Ltd. 335.2 377 9-12 Months 340

RECLTD added around 5% in open interest as short buildup was seen in it in previous session. Current

chart pattern also indicates further decline in its price. We suggest buying RECLTD options as per

below levels.

Strategy:- Buy RECLTD 115PE between 2-2.40,

SL-0.90, TGT – 5.50 for 4-6 trading sessions.

Derivative Ideas Religare Super Ideas Religare Super Ideas Religare Super Ideas

Godrej Industries Limited (GODREJIND) Reliance Capital Limited (RELCAPITAL)

GODREJIND has posted a breakout of late from its declining trend line pattern and has formed a fresh

buying pivot on daily chart. The chart pattern and confirmation indicators are also pointing towards

strong surge ahead. We advise traders to initiate fresh longs as per the given levels.

RELCAPITAL has been trading under pressure for past couple of months. Though, it has witnessed

marginal bounce of late but failed to cross its resistance zone of moving averages, resulting in

formation of fresh shorting pivot on chart.



June 18, 2018

Religare Investment Calls

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

CRISIL 01-Aug-17 1,858 2,419 30.2% 1,779.1

LIC Housing Finance 09-Aug-17 681 748 9.8% 495.8

Tata Communications 18-Sept-17 708 822 16.1% 610.6

Force Motors 25-Jan-18 3,250 4,197 29.1% 2,731.5

Kajaria Ceramics Ltd. 7-Feb-18 589 775 31.5% 524.5

Mold-Tek Packaging 8-Feb-18 346 379 9.5% 307.6

Avanti Feeds 12-Feb-18 2,504 2,980 19.0% 1,846.1

Talwalkars Better Value Fitness 12-Feb-18 304 350 15.1% 50.2

NRB Bearings 14-Feb-18 165 198 20.0% 187.5

Time Technoplast 23-Feb-18 185 249 34.6% 143.4

Navneet Education 17-May-18 139 188 35.3% 125.0

Swaraj Engines Ltd 23-May-18 1,974 2,426 22.9% 1,909.2

Prabhat Dairy Ltd. 24-May-18 176 230 30.6% 161.4

Srikalahasthi Pipes Ltd 24-May-18 299 379 26.9% 298.1

Nilkamal Ltd. 28-May-18 1,662 2,231 31.2% 1,692.7

Capacite Infraprojects Ltd. 28-May-18 274 371 35.4% 291.0

Castrol India Ltd 29-May-18 176 220 24.8% 170.3

Sutlej Textiles 31-May-18 61 75 24% 59.0

Garware Wall Ropes Ltd 04-Jun-18 947 1,093 15.5% 1,027.4

Symphony Ltd. 04-Jun-18 1,454 1,965 35.1% 1,384.6

Minda Corporation 05-Jun-18 160 213 33.1% 167.1

Bharat Electronics Ltd. 06-Jun-18 113 156 38.1% 116.9

S Chand & Company 08-Jun-18 365 562 54.0% 381.5

The Byke Hospitality 08-Jun-18 170 201 18.2% 167.8

Supreme Industries Ltd. 08-Jun-18 1,244 1,473 18.4% 1,246.0

Century Plyboards 11-Jun-18 254 343 35.0% 260.5

APL Apollo Tubes 11-Jun-18 1,789 2,289 28.0% 1,797.5

Fiem Industries 12-Jun-18 822 1,077 31.0% 831.8

SML Isuzu 13-Jun-18 814 1,028 26.3% 790.3

Asian Granito India Ltd. 14-Jun-18 358 511 42.7% 352.8

Wonderla Holidays 15-Jun-18 340 377 10.8% 335.2

Eicher Motors Ltd 15-Jun-18 29,491 33,592 13.9% 29,573.8



June 18, 2018

Corporate Action Calendar — June 2018 (Cash Dividend)

Sun Mon Tue Wed Thu Thu Fri 17

18

ICICI Prudential Life Insurance Co Ltd

Tata Coffee Ltd

Dena Bank

Torrent Pharmaceuticals Ltd

19

Supreme Industries Ltd

Rallis India Ltd

Dewan Housing Finance

Corp Ltd

Ujjivan Financial Services

Ltd

Bharat Bijlee Ltd

20

Security & Intelli-

gence Services India

Ltd

Tata Global Beverag-

es Ltd

Punjab & Sind Bank

V-Mart Retail Ltd

21

Sterlite Technologies Ltd

Tata Metaliks Ltd

Hindustan Unilever Ltd

Emami Ltd

Voith Paper Fabrics India Ltd

21

Jayant Agro-Organics Ltd

Vijaya Bank

Indian Bank

Nilkamal Ltd

Alkali Metals Ltd

Oriental Carbon & Chemicals Ltd

22

Nucleus Software Ex-

ports Ltd

Corporate Action Calendar — June 2018 (Acquisition)

Date Target Company Acquirer Company

06/18/2018

Vavian International Ltd

Infibeam Incorporation Ltd

Corporate Action Calendar — June 2018 (Stock Split)

Sun Mon Tue Wed Thu Fri Sat 17 18 19

20 21

22

Vikas Proppant & Granite Ltd

23

Corporate Action Calendar — June 2018 (Stock Dividend)

Sun Mon Tue Wed Thu Fri Sat

17 18

19

Transcorp International Ltd

20

Essel Propack Ltd

Umiya Tubes Ltd

21

Emami Ltd

Jubilant Foodworks Ltd

22

Hikal Ltd

23

Corporate Action Calendar — June 2018 (Stock Buyback)

Sun Mon Tue Wed Thu Fri Sat

17 18

19

Netlink Solutions India Ltd

20

21 22 23



June 18, 2018

Current Portfolio and Performance Summary as on 15th June’18

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

Amara Raja Batteries Auto Mar 22, 2017 10.1% 868 773

RBL Bank Financial Services July 11, 2017 10.5% 532 560

Muthoot Finance Financial Services July 26, 2017 8.3% 482 387

Va Tech Wabag Infrastructure August 16, 2017 6.7% 636 416

Can Fin Homes Financial Services September 19, 2017 7.5% 572 355

CARE Financial Services September 20, 2017 10.2% 1,493 1,360

Yes Bank Financial Services January 5, 2018 11.3% 322 331

Godfrey Phillips India Consumer Goods January 5, 2018 7.9% 1,022 733

CCL Products Beverages January 9, 2018 10.2% 306 281

Cash 17.3%

Total 100%



June 18, 2018

Historical Performance as on 15th June’18

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

Religare Alpha -6.7% -5.5% -3.2% 31.9%

Nifty 4.4% 4.7% 12.9% 37.2%

Outperformance -11.1% -10.2% -16.2% -5.3%

850

950

1,050

1,150

1,250

1,350

1,450

1,550

10/1

3/20

14

12/1

3/20

14

2/13

/201

5

4/13

/201

5

6/13

/201

5

8/13

/201

5

10/1

3/20

15

12/1

3/20

15

2/13

/201

6

4/13

/201

6

6/13

/201

6

8/13

/201

6

10/1

3/20

16

12/1

3/20

16

2/13

/201

7

4/13

/201

7

6/13

/201

7

8/13

/201

7

10/1

3/20

17

12/1

3/20

17

2/13

/201

8

4/13

/201

8

6/13

/201

8

Performance Comparison

Religare Alpha Nifty



June 18, 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 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.



June 18, 2018

Hitesh Agrawal [email protected]

Ajit Mishra [email protected]

Suhanee Shome [email protected]

Manoj M Vayalar [email protected]

Ashish Bagai [email protected]

Mehernosh Khurshed Panthaki [email protected]

Nirvi Ashar [email protected]

Rohit Khatri [email protected]

Team Members



June 18, 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 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

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 responsible 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.

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