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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.
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Religare Morning Digest
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.
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Religare Morning Digest
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
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Religare Morning Digest
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
Sun Mon Tue Wed Thu Fri Sat
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)
Sun Mon Tue Wed Thu Fri Sat
05 06 07 08 09
Indraprastha Gas Ltd
10
Esaar India Ltd
11
Corporate Action Calendar — November 2017 (Stock Dividend)
Sun Mon Tue Wed Thu Fri Sat
05 06 07 08 09
10
Gala Global Products Ltd
11
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Religare Morning Digest
November 6, 2017
Result Calendar — November 2017
Sun Mon Tue Wed Thu Fri Sat
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.-$
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Religare Morning Digest
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%
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Religare Morning Digest
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%
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Religare Morning Digest
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.
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Religare Morning Digest
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
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Religare Morning Digest
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]
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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