Religare Morning Digest · FMCG **Provisional data as on 18th January 2018 STABLE ... Investment...

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Religare Morning Digest

January 22, 2018

Nifty Outlook

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

NIFTY 10520 11000 10500

Nifty traded jubilant and scaled to a newer record high, thanks to favorable local cues. The GST Council gave the initial push by cutting tax rates on 29 products and 53 services. Besides, encouraging quarterly results and supportive global markets further strengthened the up move. Again, it was banking and financials which lead the rally closely followed by others. The broader market also witnessed a breather as both midcap and smallcap pack made a decent recovery, after two days of fall.

Participants will react to Reliance results on Monday. Markets are slightly overbought but still there’s no sign of slowing down. We suggest traders to book profit on rally and wait for some consolidation to buy fresh. Also, maintain sector and stock specific trading approach now.

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 1895 4019 9537

DII** -657 540 84014

NO OF CON-

TRACTS

TURNOVER IN CR

IDXFUTS 266703 24682

IDXOPT 6434071 591641

STKFUTS 977466 75260

Derivative Ideas **

ITC sales grew by 5.7% to Rs9,672cr in Q3FY18 as against Rs9,149cr during the same quarter previous year. EBITDA margin improved by 161bps to 40.4%. Net profit grew by 16.7% to Rs3,090cr in Q3FY18 as against Rs2,647cr during the same quarter previous year.

Kotak Mahindra Bank’s standalone NII grew by 17% to Rs2,394cr, as against Rs2,050cr during the corresponding quarter last year whereas the standalone net profit grew by 20% to Rs1,053cr as against Rs880cr during the same quarter last year. The GNPA ratio was at 2.31% against 2.47% qoq, while net NPA ratio came in at 1.09% against 1.26%.

HDFC Bank’s NII grew by 24.1% to Rs10314cr in Q3FY18 as compared to Rs8,309cr in corresponding period last year, with strong loan growth of 27.5%. Net profit grew by 20.1% to Rs4,643cr. On the asset quality front, GNPA were higher at 1.29%in Q3FY18 compared to 1.26% in previous quarter and net NPAs were also higher at 0.44%against 0.43% qoq.

**Provisional data as on 18th January 2018

Scrip Buy/Sell CMP Initiation

Range SL* Target

IBULHSGFIN BUY 1301.80 1280-1290 1240 1390

INDIGO BUY 1210.60 1200-1210 1175 1270

Instrument B/S Lot INITIATION

RANGE SL

TAR-GET

BHARATFORG BUY NA 722-725 705 765

**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.



January 22, 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 208.00 264 9-12 Months 206

BHARATFORG shed around 0.37% in open interest

as short covering was seen in it in previous session.

Current chart pattern too indicate fresh surge in its

price. We suggest buying BHARATFORG delivery as

per below levels.

Strategy: Buy BHARATFORG between 722-725,

SL– 705, TGT– 765

Derivative Ideas Religare Super Ideas

Indiabulls Housing Finance Limited

(IBULHSGFIN)

InterGlobe Aviation Limited (INDIGO)

IBULSHGFIN has finally witnessed breakout from a

consolidation phase today i.e. Jan 19 and likely to

retest its record high soon. We suggest initiating

fresh longs in the given range.

After strong rebound, INDIGO has retraced

marginal to its support zone of moving averages on

daily chart and consolidating around the same.

Indications are in the favor of fresh surge in near

future. Traders shouldn’t miss this opportunity and

accumulate in the mentioned zone.



January 22, 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% 119.8

SML Isuzu 25-May-17 1,247 1,525 22.3% 869.0

CRISIL 01-Aug-17 1,858 2,419 30.2% 1,965.2

LIC Housing Finance 09-Aug-17 681 748 9.8% 562.0

Eicher Motors Ltd 09-Aug-17 31,630 40,467 27.9% 28,009.5

Wonderla Holidays 17-Aug-17 339 430 26.8% 415.4

The Byke Hospitality 17-Aug-17 195 242 24.1% 173.9

Tata Communications 18-Sept-17 708 822 16.1% 633.9

Century Plyboards 07-Nov-17 294 312 6.1% 346.6

Kajaria Ceramics Ltd. 09-Nov-17 690 900 30.4% 717.3

Srikalahasthi Pipes Ltd 10-Nov-17 362 457 26.3% 398.2

Force Motors 13-Nov-17 3,328 4,642 39.5% 3,295.4

Castrol India Ltd 15-Nov-17 198 223 12.5% 187.8

Sutlej Textiles 17-Nov-17 96 116 21.2% 101.4

Swaraj Engines Ltd 21-Nov-17 1,888 2,252 19.3% 2,046.6

Bharat Electronics Ltd. 22-Nov-17 177 217 22.6% 172.8

Asian Granito India Ltd. 29-Nov-17 506 642 26.9% 583.1

Nilkamal Ltd. 29-Nov-17 1,791 2,097 17.1% 1,930.0

Garware Wall Ropes Ltd 1-Dec-17 914 1,083 18.4% 1,003.6

Fiem Industries 6-Dec-17 915 1,315 43.7% 989.4

Time Technoplast 28-Dec-17 206 264 28.2% 208.0



January 22, 2018

Economic Calendar — January 2018

Sun Mon Tue Wed Thu Fri Sat

21 22 23 24 25

Eight Infrastructure Industries

26 27

Corporate Action Calendar — January 2018 (Stock Dividend)


21 22 23

Excel Realty N Infra Ltd

24 25 26 27

Corporate Action Calendar — January 2018 (Cash Dividend)


21 22

Bajaj Corp Ltd

Tata Consultancy Services

India Grid Trust

23

24

Mindtree Ltd

25

Siemens Ltd

26 27



January 22, 2018

Result Calendar — January 2018


21 22

Advik Capital Ltd

ALKALI METALS LTD.

ASIAN PAINTS LTD.

Aunde India Limited-$

AXIS BANK LTD.

DEWAN HOUSING FI-NANCE CORPORATION

GUJARAT NARMADA

VALLEY FERTILIZERS &

CHEMICALS LTD.

GP Petroleums Limited

HAVELLS INDIA LTD.

HIMALYA INTERNATIONAL

LTD.

JUST DIAL LTD.

KEY CORP LTD.

LLOYDS METALS AND EN-

ERGY LTD.

MOREPEN LABORATO-RIES LTD.

Sagarsoft (India) Ltd

Sasken Technologies Ltd

Vakrangee Limited-$

VALUE INDUSTRIES LTD.

V-GUARD INDUSTRIES

VIDEOCON INDUSTRIES

VTM LTD.

EXCEL GLASSES LTD.

23

ALEMBIC LTD.

ARTSON ENGINEERING LTD.

CAN FIN HOMES LTD.

Crompton Greaves

Consumer Electricals Ltd

DOLAT INVESTMENTS LTD.

Edelweiss Financial Services

ENKEI WHEELS (INDIA) LTD.

FORCE MOTORS LTD.-$

HESTER BIOSCIENCES LTD.

INDIABULLS REAL ESTATE

Indiabulls Housing Finance

L&T Technology Services

MENON BEARINGS LTD.-$

NIIT LTD.

ORIENTAL HOTELS LTD.

PNB Housing Finance Ltd

PRIME SECURITIES LTD.

RBL Bank Ltd

RANE (MADRAS) LTD.

Shemaroo Entertainment

SWARAJ ENGINES LTD.

Symphony Limited

UNITED SPIRITS LTD.

V R WOODART LTD.

WABCO INDIA LTD.

Zenlabs Ethica Ltd

24

BIOCON LTD.

ADITYA BIRLA MONEY

CANARA BANK

CAPITAL FIRST LTD.

EVEREST INDUSTRIES

Indiabulls Ventures

IDEA CELLULAR LTD.

InterGlobe Aviation Ltd

ION EXCHANGE (INDIA)

IRB InvIT Fund

JINDAL SAW LTD.

KEI INDUSTRIES LTD.

LIBERTY SHOES LTD.

Larsen & Toubro Infotech

MAHINDRA & MAHINDRA

FINANCIAL SERVICES LTD.

MPHASIS LTD.

PFIZER LTD.

PIDILITE INDUSTRIES LTD.

RAYMOND LTD.

SAGAR CEMENTS LTD.-$

SAREGAMA INDIA LTD.

VIJAYA BANK

25

ABans Enterprises Ltd

AJANTA PHARMA LTD.

APL APOLLO TUBES LTD.

Avenue Supermarts Ltd

DR.REDDY'S LABORATORIES

LTD.

JINDAL STEEL & POWER LTD.

LIC HOUSING FINANCE LTD.

MARUTI SUZUKI INDIA LTD.

NILKAMAL LTD.

Sharda Cropchem Ltd

TATA COFFEE LTD.

TRANSCORP INTERNATIONAL

LTD.

TUMUS ELECTRIC

CORPORATION LTD.

UNIPHOS ENTERPRISES LTD.

UPL Limited

VICTORY PAPER & BOARDS (INDIA) LTD.

V.I.P.INDUSTRIES LTD.-$

YASH TRADING & FINANCE

26 27

AVANTEL LTD.

BNK CAPITAL MARKETS LTD.

DIVI'S LABORATORIES LTD.

EVERLON SYNTHETICS LTD.

IND Renewable Energy Ltd

JASCH INDUSTRIES LTD.

MAYUR FLOORINGS LTD.

PERSISTENT SYSTEMS LTD.

PRATIK PANELS LTD.

RAMMAICA (INDIA) LTD.

SRG HOUSING FINANCE LTD.



January 22, 2018

Current Portfolio and Performance Summary as on 19th January’18

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

Amara Raja Batteries Auto March 22, 2017 9.6% 868 825

RBL Bank Financial Services July 11, 2017 8.7% 532 523

Muthoot Finance Financial Services July 26, 2017 8.3% 482 434

Va Tech Wabag Infrastructure August 16, 2017 8.8% 636 619

Can Fin Homes Financial Services September 19, 2017 9.0% 572 475

CARE Financial Services September 20, 2017 9.3% 1,493 1,391

Yes Bank Financial Services January 5, 2018 10.7% 322 349

Godfrey Phillips India Consumer Goods January 5, 2018 9.5% 1,022 990

CCL Products Beverages January 9, 2018 9.5% 306 294

Cash 16.5%

Total 100%



January 22, 2018

Historical Performance as on 19th January’18

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

Religare Alpha 8.9% 6.5% 21.5% 48.0%

Nifty 7.4% 9.9% 29.2% 38.2%

Outperformance 1.5% -3.4% -7.7% 9.8%



January 22, 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.



January 22, 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 22, 2018

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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:

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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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[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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Yes No

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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

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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

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Religare Morning Digest · FMCG **Provisional data as on 18th January 2018 STABLE ... Investment...

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