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Religare Morning Digest

January 16, 2017

Nifty Outlook

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

NIFTY 8210 8400 8000

Markets ended on a flat note in a volatile session today, tracking mixed domestic cues. After an initial uptick, negative reaction on results of the IT majors, Infosys and TCS, pushed the index lower; however, losses remained capped, thanks to upbeat IIP figure and further softening of CPI inflation. In line with Nifty, mostly sectoral indices ended on the flat note while the market breadth ended slightly on negative side.

It was normal profit taking in index and stocks after the recent surge and it is healthy for the markets. We feel Nifty might consolidate around the current levels for a session or two before further up move. However, stock specific move will continue and traders should maintain buy on dips approach. We have seen decent up move in select stocks in this rebound so far and traders should focus more on stock selection now, considering the limited participation.

Sectors to watch

Sector Name Outlook

ENERGY STABLE

METALS STABLE

MEDIA STABLE

News Religare Super Ideas**

FII & DII Cash Segment (Rs. in Cr.) Trade Stats

Category Amt. MTD YTD

FII -13 -2089 13207

DII -110 2553 32050

NO OF CON-

TRACTS

TURNOVER IN CR

IDXFUTS 185851 12599

IDXOPT 2924228 199473

STKFUTS 579319 37413

Derivative Ideas **

Infosys reported a 7% increase in net profit to Rs. 3,708 Cr in Q3FY17, against Rs. 3,465 Cr in the corresponding quarter last year. Revenue rose by 8.6% to Rs. 17,273 Cr, against Rs. 15,902 Cr previously. The company added 77 new clients in Q3FY17, taking the total number of customers to 1,152. They also tweaked their annual guidance to 8.2-8.8% from 8-9% previously.

Spicejet announced a deal for the purchase of 205 aircrafts from Boeing. The original order of 55 aircrafts was enhanced to 100 additional aircrafts and 50 further purchase rights. The 205 aircraft deal is valued at Rs. 150,000 Cr. Shares closed up 2.5%.

Gruh Finance reported a 19.2% increase in net profits in Q3FY17 at Rs. 64 Cr, against Rs. 53.7 Cr in the corresponding quarter last year. The company reported a 17.8% increase in total income to Rs. 381 Cr, against Rs. 323.6 Cr previously. The aggregate NPAs of the company improved to 0.54% in Q3FY17 from 0.62% in Q3FY16.

*FII & DII data as on 12th January 2017

Scrip Buy/Sell CMP Initiation

Range SL* Target

GAIL BUY 452.25 446-450 435 485

ZEEL BUY 477.55 475-480 464 515

**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

RANGE SL TARGET

ARVIND 370

CE BUY 2000 7-8 4 15



January 16, 2017

Religare Super Ideas

Investment Pick - Sutlej Textiles and Industries Limited

Sutlej Textiles Industries Ltd. (STIL) is India's largest spun dyed yarn manufacturer and a leading textile player with presence across value chain from Yarn to

Home Textile. With a total installed capacity of 3.78 lacs spindles of Yarn and 8.4 mn metres of Home Textiles, STIL's state-of-the-art manufacturing facilities are located at Rajasthan, J&K, HP and Gujarat.

i) Leadership, diversified offerings, strong clientele and steady capacity additions places STIL in a comfortable position to exploit the available opportunities in

the Indian Textile sector, ii) Revenues are likely to grow by 6.6% CAGR over FY16-19E, led by capacity expansion and demand uptick, iii) Improved mix and operating leverage should result in healthy EBIDTA margin gains.

Scrip CMP Target Duration Recommendation Price

SUTLEJTEX 826.35 1,032 9-12 Months 812

ARVIND added around 1% of open interest as fresh

long positions. Daily vwap is around 365 levels. Put

writing was seen at 360 levels and call buying

(unwinding by writers) was seen at 370 levels. On

charts, it has created a fresh buying pivot on daily

charts. We suggest buying 370 CE as per levels

given below.

Strategy: BUY ARVIND JAN 370 CE BETWEEN 7-8,

SL 4, TARGET 15.

Derivative Ideas

GAIL (India) Limited (GAIL) Zee Entertainment Enterprises Ltd (ZEEL)

At current juncture, GAIL is trading near its

52-week high, indicating strong trend. It is well

placed on short as well as long term charts and

looks set for fresh up move. Hence, we advocate

buying in mentioned range.

Passing week, ZEEL posted fresh breakout after

trading in a narrow range 432-465 for seven weeks.

This move clearly indicates stock is in strong hands

and will trade with bullish bias in the coming

sessions as well.



January 16, 2017

Religare Investment Calls

Name of the Company Reco Date Reco Price Target Price Upside % Previous day Closing Price

Tech Mahindra 7-Aug-15 534 600 12.4% 488.5

Kotak Mahindra Bank 19-Aug-15 688 900 30.8% 727.8

Glenmark Pharma 10-Sep-15 1,017 1,370 34.7% 894.5

Dabur India 10-Sep-15 275 325 18.1% 281.7

HUL 10-Sep-15 803 1,050 30.8% 828.0

Bajaj Corp 3-Nov-15 416 500 20.3% 385.4

Britannia Inds 23-Dec-15 2,896 3,600 24.3% 2,940.0

Nandan Denim 5-Jan-16 150 183 22.0% 118.8

Atul Auto 22-Mar-16 506 580 14.6% 442.2

Century Plyboards 5-Jul-16 207 271 30.9% 178.2

Greenply Industries 5-Jul-16 248 322 29.8% 252.7

Talwalkars Better Valkue Fitness 22-Aug-16 252 328 30.2% 234.2

Tv Today Network 29-Aug-16 300 388 29.3% 265.9

Jamna Auto 2-Sep-16 217 272 25.3% 184.8

SML Isuzu 26-Sep-16 1,300 1,560 20.0% 1,183.6

Swaraj Engines Ltd. 3-Oct-16 1,184 1,535 29.6% 1,340.9

Cigniti Technologies Ltd. 5-Oct-16 419 538 28.3% 440.4

Arman Financial Services 14-Oct-16 260 338 30.0% 182.2

Garware Wall Ropes Ltd. 23-Nov-16 567 686 21.0% 617.8

Indo Count Industries Ltd. 30-Nov-16 155 207 33.5% 173.6

VIP Industries Ltd. 30-Nov-16 118 166 41.0% 120.4

LIC Housing Finance 30-Nov-16 544 700 29.0% 530.6

Manpasand Beverages 30-Nov-16 626 854 36.4% 560.7

Zee Entertainment Enterprises 30-Nov-16 457 592 29.7% 477.6

Minda Corporation 06-Dec-16 95 117 23.2% 90.7

Credit Analysis and Research 23-Dec-16 1,355 1,694 25.0% 1,383.2

Fiem Industries 26-Dec-16 1,089 1,315 20.8% 1,198.2

Castrol India 26-Dec-16 358 483 34.9% 395.7

Wonderla Holidays 26-Dec-16 332 430 29.5% 350.8

Jain Irrigation Systems 26-Dec-16 82 104 26.8% 93.4

Sutlej Textiles 12-Jan-17 812 1,032 27.1% 826.4



January 16, 2017

Corporate Action Calendar — January 2017 (Stock Dividend)

Sun Mon Tue Wed Thu Fri Sat

15 16 17 18 19

NHPC Ltd

ISGEC Heavy Engineering Ltd

20

Banco Products India Ltd

21

Corporate Action Calendar — January 2017 (Stock Split)


15 16 17 18 19

Sanguine Media Ltd

20

Narbada Gems And Jewellery

21

Economic Calendar — January 2017


15 16

Wholesale Prices YoY

17 18 19 20 21

Corporate Action Calendar — January 2017 (Stock Dividend)


15 16 17 18 19

Nutraplus India Ltd

20 21



January 16, 2017

Current Portfolio and Performance Summary as on 13th January’17

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

Bajaj Corp Consumer Goods May 13, 2016 9.5% 393 385

Magma Fincorp Financial Services June 30, 2016 8.6% 109 94

Apollo Hospitals

Enterprises Healthcare Services July 29, 2016 9.3% 1,362 1,187

Emami Consumer Goods August 3, 2016 10.0% 1,151 1,073

Castrol India Energy August 5, 2016 9.9% 425 396

Punjab National Bank Financial Services October 3, 2016 9.5% 143 125

Minda Corporation Auto Ancillaries October 10, 2016 9.4% 109 91

Pidilite Industries Chemicals November 17, 2016 10.5% 617 640

Somany Ceramics Ceramics December 20, 2016 10.1% 502 513

Cash 13.1%

Total Total 100%



January 16, 2017

Historical Performance as on 13th January’17

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

Religare Alpha -0.7% -9.8% -1.7% 8.2% 19.6%

Nifty 2.2% -2.0% -1.7% 11.5% 6.5%

Outperformance -2.9% -7.8% -0.1% -3.2% 13.0%



January 16, 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.



January 16, 2017

Hitesh Agrawal [email protected]

Ajay Pasari, CFA [email protected]

Ajit Mishra [email protected]

Archana Gude [email protected]

Gaurav Sharma [email protected]

Swati Saxena [email protected]

Manoj M Vayalar [email protected]

Mehernosh Khurshed Panthaki [email protected]

Siji A Philip [email protected]

Vipin Kumar [email protected]

Team Members



January 16, 2017

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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:

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]

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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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No

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No

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I/we have served as an officer, director or employee of the subject company? No

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SS..No. Name(s) of RA.

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Serial Question of question which the signing RA needs to make a separate declaration / answer

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