Religare Morning Digest -...

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Religare Morning Digest

November 6, 2017

Nifty Outlook

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

NIFTY 10350 10500 10000

Nifty ended with modest gains amid volatility, thanks to sustained buying in selective index majors. It opened with an uptick but turned flat in no time due to profit taking. Buying returned especially in the banking, infra and media counters as the session progressed which aided gradual recovery in the benchmark index.

We're reiterating our bullish view and suggest following the trend. We will review our target at 10600 in Nifty. Almost all the sectors are contributing in the rally now but one needs to be selective, citing the ongoing earnings season. Beside index majors, we’re seeing exceptional move in the broader market so participants should keep a balanced portfolio, to maximize their return.

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 1033 2071 -55095

DII -456 -1124 71040

NO OF CON-

TRACTS

TURNOVER IN CR

IDXFUTS 136232 12108

IDXOPT 2924604 273343

STKFUTS 791396 58798

Derivative Ideas **

Punjab National Bank reported net profit growth of 2% for Q2FY18 and its asset quality improved over previous quarter. Gross NPAs were lower at 13.31% compared with 13.66% in the previous quarter and net NPA also declined to 8.4% from 8.67% QoQ. Net interest income grew by 3.5% YoY to Rs 4,015cr. Fresh slippages for the quarter stood at Rs 3,500cr, which was much better than expectations.

Edelweiss Financial reported 27.2% YoY rise in its consolidated sales to Rs 1975.3cr. Net profit for the quarter stood at Rs 209.2cr, a growth of 44.9% YoY.

Hindalco Industries’ second quarter profit missed street expectations, falling 10.7% YoY to Rs 393cr due to one-time loss but operational numbers beat estimates led by Novelis earnings. EBITDA jumped 20.2% YoY to Rs 1,390cr and margin expanded by 70bps YoY to 13.5%. Revenue from operations increased 14.4% YoY to Rs 10,308cr.

*FII & DII data as on 2nd November 2017

Scrip Buy/Sell CMP Initiation

Range SL* Target

GRANULES BUY 140.55 136-138 132 150

PCJEWELLER BUY 352.75 352-355 342 374

Instrument B/S Lot INITIATION

RANGE SL

TAR-GET

ENGINERSIN BUY

190CE 3500 6.50-7 3.50 14

**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.



November 6, 2017

Investment Pick - Zee Entertainment Enterprises

Zee Entertainment Enterprises Ltd.'s Q2FY18 result was a mixed bag. The company reported 6.7% YoY de-growth in sales as subscription revenue declined for

second consecutive quarter. EBITDA increased by 17.2% YoY on account of lower operating cost while sharp surge in other income and exceptional gain due to closure of second phase of transaction of sale of sports business to Sony Pictures boosted PAT growth at 147.8% YoY.

ZEEL remains a good bet, considering its consistent growth track record, strong bouquet offerings across genres and superior content. The company's foray in

digital content with the launch of 'Z5' and acquisition of value added businesses paves the way for future earnings growth.

Scrip CMP Target Duration Recommendation Price

ZEEL 538.95 592 9-12 Months 532

ENGINERSIN added around 14% 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 price. We

suggest buying ENGINERSIN November Options as

per levels mentioned below.

Strategy: Buy ENGINERSIN NOV 190CE between

6.50-7, SL– 3.50, TGT– 14.

Derivative Ideas Religare Super Ideas

Granules India Limited (GRANULES) PC Jeweller Limited ( PCJEWELLER)

After prolonged consolidation phase which lasted

for almost four months, GRANULES is now trading

on the verge of breakout from the same on daily

chart and likely to witness a strong surge in near

future. Traders can accumulate fresh in the given

range.

PCJEWELER has witnessed marginal profit taking of

late , after re-testing its record high on daily chart. It

is currently trading around the support zone of short

-term moving average and likely to rebound swiftly.

Considering its chart pattern and overall trend, we

advise using this pause to initiate fresh longs.



November 6, 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% 251.1

Fiem Industries 26-Dec-16 1,089 1,315 20.8% 926.4

Greenply Industries 3-Feb-17 268 304 13.4% 287.2

Arman Financial Services 22-Feb-17 226 340 50.0% 218.2

Indo Count Industries Ltd. 17-May-17 198 240 21.2% 112.4

SML Isuzu 25-May-17 1,247 1,525 22.3% 958.6

APL Apollo Tubes 12-July-17 1,596 2,352 47.4% 1,860.8

Force Motors 27-July-17 4,104 4,897 19.3% 3,626.6

CRISIL 01-Aug-17 1,858 2,419 30.2% 1,793.0

LIC Housing Finance 09-Aug-17 681 748 9.8% 608.5

Eicher Motors Ltd 09-Aug-17 31,630 40,467 27.9% 31,235.1

Wonderla Holidays 17-Aug-17 339 430 26.8% 373.4

The Byke Hospitality 17-Aug-17 195 242 24.1% 156.2

Century Plyboards 18-Aug-17 251 307 22.3% 288.3

Srikalahasthi Pipes Ltd 18-Aug-17 362 416 14.8% 369.9

Jain Irrigation Systems Ltd. 23-Aug-17 93 125 34.4% 110.1

Mold-Tek Packaging Limited 31-Aug-17 301 340 13.0 % 325.1

Swaraj Engines Ltd 31-Aug-17 1,985 2,201 10.9% 1,963.9

Castrol India 01-Sept-17 389 426 9.6% 415.1

Symphony Ltd 07-Sept-17 1,297 1,632 25.8% 1,565.7

Garware Wall Ropes Ltd 12-Sept-17 920 1,083 17.7% 920.3

Talwalkars Better Value Fitness 18-Sept-17 288 346 20.0% 274.9

Tata Communications 18-Sept-17 708 822 16.1% 689.4

GNA Axles 29-Sept-17 310 418 34.8% 375.0

Kajaria Ceramics Ltd. 06-Oct-17 732 900 22.9% 671.4

Nilkamal Ltd. 11-Oct-17 1,610 2,097 30.2% 1,618.3

Zee Entertainment Enterprises 27-Oct-17 532 592 11.0% 539.0



November 6, 2017

Corporate Action Calendar — November 2017 (Cash Dividend)

Sun Mon Tue Wed Thu Fri Sat

05 06

Suprajit Engineering Ltd

Gillette India Ltd

Jayant Agro-Organics Ltd

Supreme Industries Ltd

Supreme Industries Ltd

Marico Ltd

Sharda Cropchem Ltd

07

Procter & Gamble Hygiene &

Health Care Ltd

Dabur India Ltd

Symphony Ltd

Phillips Carbon Black Ltd

Mastek Ltd

Sagar Cements Ltd

08

Godrej Consumer Products

Ltd

TVS Motor Co Ltd

TCI Express Ltd

Info Edge India Ltd

Navin Fluorine International

09

Transport Corp of India Ltd

PI Industries Ltd

R Systems International Ltd

SQS India BFSI Ltd

10

Shriram Transport Finance Co

Power Finance Corp Ltd

Wall Street Finance Ltd

PPAP Automotive Ltd

Hexaware Technologies Ltd

11

Economic Calendar — November 2017


05 06 07 08 09 10

Industrial Production YoY

11

Corporate Action Calendar — November 2017 (Acquisition)

Date Target Company Acquirer Company

11/8/2017 PJSA Technosoft Pvt Ltd UFO Moviez India Ltd

11/9/2017 Ruia Aquaculture Farms Ltd Multiple acquirers

Corporate Action Calendar — November 2017 (Stock Split)


05 06 07 08 09

Indraprastha Gas Ltd

10

Esaar India Ltd

11

Corporate Action Calendar — November 2017 (Stock Dividend)


05 06 07 08 09

10

Gala Global Products Ltd

11



November 6, 2017

Result Calendar — November 2017


05 06

CENTURY TEXTILES &

INDUSTRIES LTD.

Fortis Malar Hospitals

Ganges Securities Ltd

GUJARAT INDUSTRIES

POWER CO.LTD.

Greenlam Industries

Gujarat Gas Ltd

Gulf Oil Lubricants India

Housing and Urban De-velopment Corporation

INDIAN BANK

JUST DIAL LTD.

KEC INTERNATIONAL

Larsen & Toubro

Infotech Ltd

NRB BEARINGS LTD.

Parag Milk Foods Ltd

RURAL ELECTRIFICA-TION CORPORATION

THOMAS COOK (INDIA)

TORRENT POWER LTD.

Varun Beverages Ltd

Welspun Corp Limited

Zenlabs Ethica Ltd

07

Aditya Birla Capital Ltd

Adlabs Entertainment Ltd

CASTROL INDIA LTD.

CENTURY ENKA LTD.

CIPLA LTD.

DALMIA BHARAT LTD.

DCM Shriram Limited

ESCORTS FINANCE LTD.

ESSEL PROPACK LTD.

FINOLEX CABLES LTD.

Future Retail Ltd

INDBANK MERCHANT BANK-

ING SERVICES LTD.

IND BANK HOUSING LTD.

INDIAN OVERSEAS BANK

JINDAL SAW LTD.

JYOTHY LABORATORIES LTD.

MANAPPURAM FINANCE LTD.

Huhtamaki PPL Limited

TATA COFFEE LTD.

VINATI ORGANICS LTD.-$

V.I.P.INDUSTRIES LTD.-$

08

ARVIND LTD.

ASHOK LEYLAND LTD.

BAJAJ GLOBAL LTD.

BHARAT FORGE LTD.

BOMBAY DYEING

CESC LTD.

CHENNAI PETROLEUM

CORPORATION LTD.

CITY UNION BANK LTD.

FORBES & COMPANY LTD.-

GREENPLY INDUSTRIES

HINDUJA GLOBAL

SOLUTIONS LTD.

JK LAKSHMI CEMENT LTD.

Mahanagar Gas Ltd

MUTHOOT FINANCE LTD.

NITCO LTD.

PETRONET LNG LTD.

PIDILITE INDUSTRIES LTD.

PIONEER INVESTCORP LTD.

Rain Industries Ltd

Snowman Logistics Ltd

THERMAX LTD.

UMANG DAIRIES LTD.

VOLTAS LTD.

VA TECH WABAG LTD.

WELSPUN INDIA LTD.

09

ALLCARGO LOGISTICS

AMARA RAJA

APTECH LTD.

ALCHEMIST REALTY

AUROBINDO PHARMA

BAJAJ ELECTRICALS

Coffee Day Enterprises

FORCE MOTORS LTD.-$

GRANULES INDIA LTD.-$

Heritage Foods Limited

HINDUSTAN PETROLE-

UM CORPORATION LTD.

IGARASHI MOTORS

INDRAPRASTHA GAS

INDIA CEMENTS LTD.

JAGRAN PRAKASHAN

JINDAL STEEL & POWER

MAGMA FINCORP LTD.

NHPC LTD.

PAGE INDUSTRIES LTD.

PTC INDIA LTD.

STEEL AUTHORITY OF

INDIA LTD.

SRF LTD.

TATA MOTORS LTD.

Tata Motors Ltd - DVR

TV TODAY NETWORK

10

AARTI INDUSTRIES LTD.

ASHOKA BUILDCON LTD.

BEML LTD.

BOSCH LTD.

BHARAT PETROLEUM COR-

PORATION LTD.

FINOLEX INDUSTRIES LTD.

GABRIEL INDIA LTD.-$

HSIL LTD.

KESORAM INDUSTRIES LTD.

MAHINDRA & MAHINDRA

BANK OF MAHARASHTRA

MOTHERSON SUMI SYSTEMS

MRF LTD.

MUTHOOT CAPITAL

SERVICES LTD.

NESTLE INDIA LTD.

PFIZER LTD.

STATE BANK OF INDIA

SML ISUZU LIMITED

SUN TV NETWORK LTD.

11

ADANI POWER LTD.

AVANTI FEEDS LTD.-$

BIRLA CORPORATION LTD.

COAL INDIA LTD.

CONTROL PRINT LTD.-$

EMA INDIA LTD.

J.K.CEMENT LTD.

KIRLOSKAR BROTHERS LTD.-$

LARSEN & TOUBRO LTD.

Minda Corporation Ltd

MINDA INDUSTRIES LTD.-$

NATIONAL ALUMINIUM

CO.LTD.

NECTAR LIFESCIENCES LTD.

NILE LTD.

N.K.INDUSTRIES LTD.

PUNJ LLOYD LTD.

SUVEN LIFE SCIENCES LTD.

ZENITH FIBRES LTD.-$



November 6, 2017

Current Portfolio and Performance Summary as on 3rd November’17

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

Amara Raja Batteries Auto March 22, 2017 8.7% 868 690

RBL Bank Financial Services July 11, 2017 9.4% 532 520

Muthoot Finance Financial Services July 26, 2017 10.3% 482 497

Talwalkars Better value

Fitness Health Fitness July 27, 2017 9.2% 302 275

Va Tech Wabag Infrastructure August 16, 2017 9.1% 636 588

Nilkamal Plastic Products August 17, 2017 9.5% 1,682 1,618

Can Fin Homes Financial Services September 19, 2017 9.6% 572 467

CARE Financial Services September 20, 2017 11.1% 1,493 1,530

Zee Entertainment

Enterprises Media & Ent. October 24, 2017 10.2% 525 539

Tejas Networks Telecom Services November 3, 2017 9.9% 387 381

Cash 3.1%

Total 100%



November 6, 2017

Historical Performance as on 3rd November’17

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

Religare Alpha 0.8% -1.9% 4.2% 36.9%

Nifty 4.4% 12.6% 23.2% 32.6%

Outperformance -3.6% -14.4% -18.9% 4.3%



November 6, 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.



November 6, 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]

Suhanee Shome [email protected]

Team Members



November 6, 2017

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]

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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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