Religare Morning Digest Morning Digest April 27, 2017 ... PVR signed a deal with IMAX for additional 5 ... measures to deepen the bond market and Crisil's robust 40% plus ...
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1 Disclaimer: http://www.religareonline.com/research/Disclaimer/
Religare Morning Digest
April 27, 2017
Nifty Outlook
VWAP (Expiry till date) Max OI (Call) Max OI (Put)
NIFTY 9215 9400 9100
Nifty inched higher for the third day in a row and gained nearly half a percent amid volatility. Firm Asian markets and strengthening rupee helped index to open strong which further supported by renewed buying in select index majors. However, profit taking in latter half marginally trimmed the gains and pushed the market breadth also slightly on the negative side.
Volatility will remain high due to the derivatives expiry tomorrow. We reiterate our positive view on markets and suggest using dips to add quality stocks. Auto counters are all set for fresh surge after the recent consolidation so keep a close eye on them for fresh buying opportunities.
Sectors to watch
Sector Name Outlook
BANK STABLE
ENERGY STABLE
MEDIA STABLE
News
Religare Super Ideas**
FII & DII Cash Segment (Rs. in Cr.) Trade Stats
Category Amt. MTD FYTD
FII 179 -4804 -4804
DII 998 6318 6318
NO OF CON-
TRACTS
TURNOVER IN CR
IDXFUTS 434166 32827
IDXOPT 7458482 576450
STKFUTS 1721846 129050
Derivative Ideas **
Dilip Buildcon Ltd (DBL) bagged three road projects worth Rs. 3,269 Cr in Maharashtra from the National Highway Authority of India. DBL has incorporated three SPV (Special Purpose Vehicle) companies for the projects.
PVR signed a deal with IMAX for additional 5 screens. IMAX is known for delivering better movie experience. The installation of the additional screens would cost approximately Rs. 55 Cr.
Kolte Patil Developers signed its largest re-development project in Mumbai with 15,035 square meters plot area. The project is located in a strategic region in the vicinity of the highway and upcoming metro line.
*FII & DII data as on 25th April 2017
Scrip Buy/Sell CMP Initiation
Range SL* Target
ITC BUY 290.90 288-292 279 310
MANAPPURAM BUY 95.65 95.50-
96.50 90 108
**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.
Instrument B/S Lot INITIATION
PRICE SL
TAR-GET
BHARTIARTL BUY MAY
FUTS 1700 349-351 340 370
2 Disclaimer: http://www.religareonline.com/research/Disclaimer/
Religare Morning Digest
April 27, 2017
Religare Super Ideas
Investment Pick - CRISIL
CRISIL's 11.9% YoY Revenue growth in Q1CY17 was driven by pick-up in the research business while Operating margins came in largely in-line at 30.3%. However,
adverse forex impact of Rs 11.9 cr led to flattish profit growth of Rs 73.3 cr. Though sluggish credit off-take and diminished prospects of SME segment due to government subsidy cut for FY18 could impact business in the near-term, we continue to like Crisil for it strong parentage, superior return ratios, and healthy dividend pay-outs.
With the ratings industry's healthy long-term prospects, strong visibility due to recent RBI measures to deepen the bond market and Crisil's robust 40% plus
market share therein, we maintain our 'BUY' on the stock.
Scrip CMP Target Duration Recommendation Price
CRISIL 1,921.50 2,540 9-12 Months 1,911
BHARTIARTL added around 19% of open interest as
long buildup along with good delivery based buying
in previous session. It has rolled around 52% in next
contract so far. It has also witnessed congestion
zone breakout on daily charts on April 26, 2017. We
suggest buying BHARTIARTL May futures as per
levels given below.
Strategy: BUY BHARTIARTL MAY FUTS BETWEEN
349-351, SL 340, TARGET 370.
Derivative Ideas
ITC Limited (ITC)
Manappuram Finance Limited
(MANAPPURAM)
After a month long consolidation phase, ITC has
witnessed a fresh surge today i.e. on April 26 and
made a new record high. Its chart pattern indicates
positive trend to continue.
MANAPPURAM has been consolidating in a narrow
range for last two months while holding strongly
above its short term moving averages on multiple
time frames. It has recently tested the lower band
of the range, offering fresh buying opportunity
before breakout.
3 Disclaimer: http://www.religareonline.com/research/Disclaimer/
Religare Morning Digest
April 27, 2017
Religare Investment Calls
Name of the Company Reco Date Reco Price Target Price Upside % Previous day Closing Price
Nandan Denim 5-Jan-16 150 183 22.0% 117.8
Atul Auto 22-Mar-16 506 580 14.6% 432.1
Cigniti Technologies Ltd. 5-Oct-16 419 538 28.3% 324.3
Fiem Industries 26-Dec-16 1,089 1,315 20.8% 1,014.4
Force Motors 25-Jan-17 4,274 5,210 21.9% 4,650.4
Zee Entertainment Enterprises 27-Jan-17 498 592 18.8% 527.8
Greenply Industries 3-Feb-17 268 304 13.4% 282.5
Manpasand Beverages 7-Feb-17 681 854 25.4% 705.6
Wonderla Holidays 7-Feb-17 380 430 13.1% 391.1
Century Plyboards 8-Feb-17 216 300 38.8% 264.4
NRB Bearings 9-Feb-17 108 132 22.2% 121.1
Tv Today Network 14-Feb-17 270 360 33.3% 268.3
Sutlej Textiles 14-Feb-17 843 1,032 22.5% 920.8
Indo Count Industries Ltd. 17-Feb-17 164 207 26.2% 194.6
Talwalkars Better Value Fitness 20-Feb-17 217 328 51.1% 271.2
SML Isuzu 21-Feb-17 1,240 1,560 25.8% 1,334.9
Arman Financial Services 22-Feb-17 226 340 50.0% 196.2
Jamna Auto 28-Feb-17 209 272 30.1% 239.2
Castrol India 7-Mar-17 412 483 17.1% 438.3
Berger Paints (I) Ltd 15-Mar-17 230 273 18.7% 255.5
Avanti Feeds 16-Mar-17 715 945 32.2% 855.4
Huhtamaki PPL Ltd 30-Mar-17 228 287 26.0% 265.6
Bajaj Finance Ltd 31-Mar-17 1,170 1,421 21.5% 1,309.7
The Byke Hospitality 11-Apr-17 191 242 26.7% 208.8
Mayur Uniquoters Ltd 18-Apr-17 380 478 25.8% 405.7
CRISIL 26-Apr-17 1,911 2,540 32.9% 1,921.5
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Religare Morning Digest
April 27, 2017
Corporate Action Calendar — April 2017 (Stock Split)
Sun Mon Tue Wed Thu Fri Sat
23 24
Avance Technologies
25 26
BLS International Services Ltd
27 28 29
Corporate Action Calendar — April 2017 (Cash Dividend)
Sun Mon Tue Wed Thu Fri Sat
23 24 25
Sanofi India Ltd
26
Cairn India Ltd
Orient Paper & Industries Ltd
27
Elantas Beck India Ltd
Mold-Tek Technologies Ltd
28
ABB India Ltd
29
Economic Calendar — April 2017
Sun Mon Tue Wed Thu Fri Sat
23 24 25
Eight Infrastructure Industries
26 27 28 29
Corporate Action Calendar — April 2017 (Acquisition)
Date Target Company Acquirer Company
4/24/2017 Aurum Soft Systems Ltd Private Investor
4/25/2017 Rammaica India Ltd Private Investor
4/26/2017 Pritika Auto Industries Ltd Multiple acquirers
4/26/2017 Regency Investments Ltd Private Investor
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Religare Morning Digest
April 27, 2017
Result Calendar — April 2017
Sun Mon Tue Wed Thu Fri Sat
23 24
APPLE CREDIT CORPORATION LTD.
HEXAWARE TECHNOLOGIES LTD.
Indiabulls Housing Finance Ltd
JSW Holdings Limited
PERSISTENT SYSTEMS LTD.
RALLIS INDIA LTD.
Regency Investments Ltd
RELIANCE INDUSTRIES LTD.
SANWARIA AGRO OILS LTD.-$
STANROSE MAFATLAL INVESTMENTS AND FINANCE LTD.
TIMES GUARANTY LTD.
ULTRATECH CEMENT LTD.
WENDT (INDIA) LTD.
25
ABans Enterprises Ltd
ACROW INDIA LTD.
AXIS BANK LTD.
CAN FIN HOMES LTD.
ICICI Prudential Life Insurance Company Ltd
IDFC Bank Ltd
INDIAN BANK
International Paper APPM Limited
KEWAL KIRAN CLOTHING LTD.
LIC HOUSING FINANCE LTD.
MAHINDRA & MAHINDRA FINANCIAL SERVICES LTD.
Mega Nirman and Industries Ltd
NUCLEUS SOFTWARE EXPORTS LTD.
PERSISTENT SYSTEMS LTD.
RAJASTHAN PETRO SYNTHETICS LTD.
SAVANT INFOCOMM LTD.
SIP INDUSTRIES LTD.
SWARAJ ENGINES LTD.
TAYO ROLLS LTD.-$
VERTEX SECURITIES LTD.
WIPRO LTD.
26
DHRUV ESTATES LTD.
FOSECO INDIA LTD.
Gujarat Bitumen Ltd
GIC HOUSING FINANCE LTD.
KPIT Technologies Limited
KSB PUMPS LTD.
LAKSHMI VILAS BANK LTD.
LKP Finance Limited
LKP Securities Ltd
PROGRESSIVE EXTRACTIONS & EXPORTS LTD.
SADHANA NITROCHEM LTD.
SUPREME PETROCHEM LTD.
SURAJ LTD.-$
TATA SPONGE IRON LTD.
VISHVPRABHA TRADING LTD.
27
BIOCON LTD.
EPC INDUSTRIE LTD.
FUTURISTIC SOLUTIONS LTD.
HATSUN AGRO PRODUCT LTD.
HIL LTD.
KOKUYO CAMLIN LTD.-$
KOTAK MAHINDRA BANK LTD.
Mahindra CIE Automotive Limited
MARAL OVERSEAS LTD.
MARUTI SUZUKI INDIA LTD.
MENON BEARINGS LTD.
SHRIRAM ASSET MANAGEMENT CO.LTD.
Syngene International Ltd
TATA ELXSI LTD.
TRANSWARRANTY FINANCE LTD.
TVS MOTOR COMPANY LTD.
28
AMBUJA CEMENTS LTD.
AUTOMOTIVE STAMP-INGS & ASSEMBLIES LTD.
BERVIN INVESTMENT & LEASING LTD.
ADITYA BIRLA MONEY LTD.-$
Cholamandalam Investment and Finance Company Ltd
COROMANDEL INTERNATIONAL LTD.
DEEPAK NITRITE LTD.-$
DIAMINES & CHEMICALS
DIC INDIA LTD.
FEDERAL BANK LTD.
IDFC LIMITED
KIRLOSKAR FERROUS INDUSTRIES LTD.
Navin Fluorine International Limited-$
SUPREME INDUSTRIES LTD.
SWARNA SECURITIES LTD.
UNIPHOS ENTERPRISES LTD.
UPL Limited
29
ASTRA MICROWAVE PRODUCTS LTD.
COROMANDEL ENGINEERING COMPANY
JSW Energy Ltd
MANGALYA SOFT-TECH LTD.
TRANSCORP INTERNATIONAL LTD.
6 Disclaimer: http://www.religareonline.com/research/Disclaimer/
Religare Morning Digest
April 27, 2017
Current Portfolio and Performance Summary as on 26th April’17
Stock Sector Entry Date Weight Reco price (`) CMP (`)
Emami Consumer Goods August 3, 2016 8.1% 1,151 1,028
Castrol India Energy August 5, 2016 9.4% 425 438
Sml Isuzu Auto February 6, 2017 9.6% 1,265 1,335
UPL Fertilisers & Pesticides March 17, 2017 10.3% 723 831
Amara Raja Batteries Auto March 22, 2017 10.8% 868 884
Cholamandalam Investment and Finance
Financial Services April 5, 2017 12.0% 975 1,138
Power Grid Corporation of India
Energy April 12, 2017 10.9% 200 206
Cash 28.9%
Total Total 100%
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Religare Morning Digest
April 27, 2017
Historical Performance as on 26th April’17
Performance Matrix 1-Month 3-Month 6-Month 1-Year Since Inception
Religare Alpha 13.3% 14.3% 4.7% 23.2% 40.6%
Nifty 2.7% 10.3% 8.5% 17.4% 18.6%
Outperformance 10.6% 4.0% -3.9% 5.8% 22.0%
8 Disclaimer: http://www.religareonline.com/research/Disclaimer/
Religare Morning Digest
April 27, 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
April 27, 2017
Hitesh Agrawal hitesh.agrawal@religare.com
Ajay Pasari, CFA ajay.pasari@religare.com
Ajit Mishra ajit.mishra@religare.com
Archana Gude archana.gude@religare.com
Manoj M Vayalar manoj.vayalar@religare.com
Mehernosh Khurshed Panthaki mehernosh.panthaki@religare.com
Siji A Philip siji.philip@religare.com
Swati Saxena swati.saxena@religare.com
Vipin Kumar vipin.k@religare.com
Team Members
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Religare Morning Digest
April 27, 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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