Religare Morning Digest · Religare Morning Digest ... with this acquisition. COLPAL Tata Motors surged 2.3% as ... Global wholesales of all Tata Motors' commercial vehicles and Tata

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Religare Morning Digest

December 11, 2017

Nifty Outlook

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

10300 10500 10000

Nifty rebounded further and gained nearly a percent, tracking firm global markets and supportive local cues. Besides, RBI’s latest report on bank loan growth also boosted the sentiment. Mostly sectoral indices participated in the up move and broader market too showed noticeable strength.

We feel other factors will take a back seat now as all eyes are on Gujarat election. The recent opinion polls indicate the ruling party, BJP, will retain the state, but may see loss of vote share.

We suggest keeping leveraged positions hedged, considering the possibility of volatile swings ahead. Nifty has next hurdle at 10350. Continuous participation of banking pack is essential for sustainable surge.

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 -1076 -3793 -74475

DII 927 3949 79280

NO OF CON-

TRACTS

TURNOVER IN CR

IDXFUTS 186644 16018

IDXOPT 3102411 275149

STKFUTS 654239 47748

Derivative Ideas **

Sonata Software surged 5% after the company announced that its wholly owned subsidiary, Sonata Europe has entered into an agreement with IZARA ApS to acquire 15% stake in Danish company. Sonata Software plans to grow its presence in Nordic region with this acquisition.

Tata Motors surged 2.3% as the company announced that the Tata Motors Group global wholesales, including Jaguar Land Rover, rose 22% yoy at 1,12,473 units in November 2017. Global wholesales of all Tata Motors' commercial vehicles and Tata Daewoo range jumped 51% yoy at 40,845 units in November 2017

Thomas Cook India announced that it has opened two foreign exchange outlets at Bhubaneswar Airport in its attempt to target the growth potential of Odisha market. Thomas Cook (India) has identified Odisha as a significant growth market for its foreign exchange business and to leverage this opportunity, the company has opened 2 counters at Biju Patnaik International Airport, Bhubaneswar.

*FII & DII data as on 7th December 2017

Scrip Buy/Sell CMP Initiation

Range SL* Target

COLPAL BUY 1069.45 1055-1065 1025 1130

NMDC BUY 131.55 130-131 127 138

Instrument B/S Lot INITIATION

RANGE SL

TAR-GET

CIPLA BUY

610CE 1000 10-11 5 21

**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.



December 11, 2017

Investment Pick - Fiem Industries

Fiem Industries reported subdued Q2FY18 result, as revenue and Net profit increased by 12.2% and 1.9% respectively yoy. Automotive segment reported healthy

growth, whereas LED Luminaries segment continued to disappoint.

Fiem has been launching new and latest products to increase its offerings and providing value addition to its customers. We expect it's margins to improve in the

next 2-3 years, after slowdown in the last few quarters. On revival of LED segment, we expect orders to flow from FY19E. Thus, we believe that the worst is over for the company and it is likely to get on track to report healthy growth in the coming quarters. We maintain a Buy on the stock with a target price of Rs. 1,315.

Scrip CMP Target Duration Recommendation Price

FIEMIND 950.85 1,315 9-12 Months 915

CIPLA added around 1.60% 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

CIPLA options as per levels mentioned below.

Strategy: Buy CIPLA 610CE BETWEEN 10-11, SL-5,

TGT-21

Derivative Ideas Religare Super Ideas

Colgate Palmolive (India) Limited (COLPAL) NMDC Limited (NMDC)

COLPAL has registered fresh breakout today i.e.

on 8th December from its consolidation range of

medium and short-term moving averages

(100/50EMA) on daily chart, indicating fresh buying

opportunity. We advise traders to utilize the same

and accumulate in the given range.

NMDC has been trading in a broader range for last

three months or so and likely to retest the upper

band of the range in near future. Considering its

chart pattern and overall trend, we expect a

strong surge ahead.



December 11, 2017

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% 115.0

SML Isuzu 25-May-17 1,247 1,525 22.3% 875.8

APL Apollo Tubes 12-July-17 1,596 2,352 47.4% 1,948.9

CRISIL 01-Aug-17 1,858 2,419 30.2% 1,786.1

LIC Housing Finance 09-Aug-17 681 748 9.8% 566.4

Eicher Motors Ltd 09-Aug-17 31,630 40,467 27.9% 29,000.0

Wonderla Holidays 17-Aug-17 339 430 26.8% 357.3

The Byke Hospitality 17-Aug-17 195 242 24.1% 163.4

Jain Irrigation Systems Ltd. 23-Aug-17 93 125 34.4% 118.6

Talwalkars Better Value Fitness 18-Sept-17 288 346 20.0% 300.9

Tata Communications 18-Sept-17 708 822 16.1% 679.7

Century Plyboards 07-Nov-17 294 312 6.1% 320.9

Kajaria Ceramics Ltd. 09-Nov-17 690 900 30.4% 704.3

NRB Bearings 09-Nov-17 144 173 20.1% 147.5

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

Force Motors 13-Nov-17 3,328 4,642 39.5% 3,204.0

Castrol India Ltd 15-Nov-17 396 446 12.5% 396.9

Minda Corporation 15-Nov-17 168 217 29.1% 182.5

Mold-Tek Packaging Limited 15-Nov-17 316 374 18.4% 317.6

Jamna Auto Industries 16-Nov-17 60 78 30.0% 66.8

Manpasand Beverages 17-Nov-17 408 474 16.2% 379.2

Sutlej Textiles 17-Nov-17 96 116 21.2% 101.0

Swaraj Engines Ltd 21-Nov-17 1,888 2,252 19.3% 1,943.4

Bharat Electronics Ltd. 22-Nov-17 177 217 22.6% 185.1

Symphony Ltd 24-Nov-17 1,592 1,714 7.6% 1,595.0

Asian Granito India Ltd. 29-Nov-17 506 642 26.9% 512.4

Nilkamal Ltd. 29-Nov-17 1,791 2,097 17.1% 1,767.5

Garware Wall Ropes Ltd 1-Dec-17 914 1,083 18.4% 918.7

Fiem Industries 6-Dec-17 915 1,315 43.7% 950.9



December 11, 2017

Corporate Action Calendar — December 2017 (Interim Dividend)

Sun Mon Tue Wed Thu Fri Sat

10 11

NESTLE INDIA LTD.

12

ADVANI HOTELS & RE-

SORTS (INDIA) LTD.

13

ATUL AUTO LTD.-$

GPT INFRAPROJECTS LTD.

14

FIBERWEB (INDIA) LTD.

15 16

Corporate Action Calendar — December 2017 (Dividend)


10 11 12 13

INDSIL HYDRO POWER AND

MANGANESE LTD

14

IFGL Refractories Ltd

15 16

Corporate Action Calendar — December 2017 (Stock Split)


10 11 12 13 14

Advik Capital Ltd

15 16



December 11, 2017

Current Portfolio and Performance Summary as on 8th December’17

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

Amara Raja Batteries Auto March 22, 2017 9.5% 868 773

RBL Bank Financial Services July 11, 2017 9.0% 532 514

Muthoot Finance Financial Services July 26, 2017 8.9% 482 439

Talwalkars Better value

Fitness Health Fitness July 27, 2017 9.9% 302 301

Va Tech Wabag Infrastructure August 16, 2017 9.3% 636 619

Nilkamal Plastic Products August 17, 2017 10.1% 1,682 1,768

Can Fin Homes Financial Services September 19, 2017 9.6% 572 481

CARE Financial Services September 20, 2017 9.7% 1,493 1,377

Tejas Networks Telecom Services November 3, 2017 10.1% 387 396

Cash 14.0%

Total 100%



December 11, 2017

Historical Performance as on 8th December’17

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

Religare Alpha 3.6% 2.8% 14.9% 40.3%

Nifty 3.4% 6.2% 24.5% 30.2%

Outperformance 0.2% -3.4% -9.6% 10.1%



December 11, 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.



December 11, 2017

Hitesh Agrawal [email protected]

Ajay Pasari, CFA [email protected]

Ajit Mishra [email protected]

Manoj M Vayalar [email protected]

Mehernosh Khurshed Panthaki [email protected]

Suhanee Shome [email protected]

Team Members



December 11, 2017

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Religare Morning Digest · Religare Morning Digest ... with this acquisition. COLPAL Tata Motors surged 2.3% as ... Global wholesales of all Tata Motors' commercial vehicles and Tata

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