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Religare Morning Digest

January 4, 2016

Nifty Outlook

Nifty made a positive start of the new calendar year on Friday, after trading volatile in a narrow

range. The beginning was subdued in reaction to core sector data, which contracted in November

after expanding for six consecutive months. Also, report of increase in the external debt of the

country further dampened the sentiments. Sudden surge in the banking counters in later half

pushed Nifty again in green and close above 7950.

Though Nifty has recovered strongly in last three weeks but Midcap and Smallcap counters are

still outperforming the index majors. And, existence of hurdle around 8000-8050 zone in Nifty

indicates this trend to continue ahead also. Traders should focus more on stocks and maintain

buy on dips in quality stocks in private banking, NBFC, auto, Midcap and Smallcap space.

VWAP Max Call Max Put

Nifty 7920 8200 7800

Sectors to watch

Sector Name Outlook

BANKS STABLE

IT POSITIVE

PHARMA STABLE

News Religare Super Ideas

FII & DII activity (Rs. in Cr.) Trade Stats

Category Amt MTD YTD

FII 1123 2814 40183

DII -258 6866 69599

NO OF

CONTRACTS

TURNO-

VER IN CR

IDXFUTS 151271 8431

IDXOPT 999548 59280

STKFUTS 394782 22002

Mahindra & Mahindra reported 4% increase in total sales at 37,915 vehicles in December. In the

domestic market, the company's sales were up 1% at 34,839 units last month against 34,460 in

December 2014. Exports were up 65% at 3,076 units against 1,868 units in the same period a

year ago.

Maruti Suzuki India has sold 1,11,333 units in the domestic market in December, up 13.5% as

compared with 98,109 units in the same month in 2014. Most of the sales during the month

were led by the compact segment (Swift, Celerio, Baleno, Dzire) that grew by 14% to 47,354

units in December against 41,532 units in the corresponding month of the previous year.

Derivative Ideas :

Instrument B/S Lot INITIATION

RANGE SL TARGET

CROMPGREAV

JAN 195 CE B 3000 7

CROMPGREAV

JAN 200 CE S -3000 5

SPREAD 2 0.8 5 *FII & DII data of 31st December 2015

Scrip Buy/Sell CMP Initiation

Range SL Target

HDFC BUY 1258.45 1250-1255 1220 1320

SAIL SELL JAN

FUT 47.90 49-49.50 50.50 44



January 4, 2016

Religare Super Ideas

Investment Pick - Heritage Foods Limited

HERITGFOOD

Heritage Foods is one of the largest Dairy companies in India, based in Hyderabad. The company operates in five divisions: Dairy, Retail, Agri, Bakery and Renewable energy. Dairy is the flagship business of the company contributing 74% to the topline in FY15.

Dairy industry has tremendous potential for growth, Value added products to improve margin of its dairy business & Retail business reported positive EBITDA showing signs of revival.

Scrip CMP Target Duration Recommendation Price

HERITGFOOD 576.30 640 9-12 Months 525

Crompton Greaves has seen long built up in futures

with rise in Open interest by 12%. The stock is

currently trading above its VWAP of 192. However

some call writing is seen in 200 strike indicating

resistance at that level.

Strategy:- BUY CROMPGREAV JAN 195 CE 1 LOT @7

AND SELL 1 LOT 200 CE @5, SPREAD AT 2, SL 0.8,

Target 5 .

Derivative Ideas

Housing Development Finance Corporation

Limited (HDFC)

Steel Authority of India Limited (SAIL)

HDFC consolidated for almost two weeks above the

confluence point of its 50,100&200 EMA on daily

chart. This breakout was supported by strong

volume indicating buyer’s interest at current levels.

SAIL is trading well below its medium and long-term

averages and is continuously forming lower lows from

January last year. Considering its overall chart pattern

we do not expect any respite in the near-term. Hence,

it is wise to create fresh short positions.



January 4, 2016

Corporate Action Calendar— January 2016 (Interim Dividend)

Sun Mon Tue Wed Thu Fri Sat

03 04 05 06 07

MAXHEIGHTS INFRASTRUCTURE LTD.

08 09

Corporate Action Calendar— January 2016 (Stock Split)


03 04 05 06

GREENPLY INDUSTRIES LTD.

07

Stampede Capital Limited

08 09

Corporate Action Calendar— January 2016 (Bonus issue)


03 04 05

KOTHARI PRODUCTS LTD. (1:2)

06 07 08 09

Economic Calendar— January 2016


03 04

Nikkei India PMI Mfg

05 06 07 08

Local Car Sales

Exports YoY

Imports YoY

Trade Balance

09

Corporate Action Calendar— January 2016 (Buy Back of Shares)


03 04 05 06

07

TECHNOCRAFT INDUSTRIES (INDIA) LTD (INDIA) LTD

08 09



January 4, 2016

Market Snapshot

Sectoral Indices Performance

Index Closing % Change % MTD % YTD

NIFTY Auto 8328.3 0.89% 0.89% 0.89%

NIFTY Bank 17039.25 0.69% 0.69% 0.69%

NIFTY Energy 8594.7 0.12% 0.12% 0.12%

Nifty Financial Services 7091.45 0.46% 0.46% 0.46%

NIFTY FMCG 20184.95 -0.04% -0.04% -0.04%

NIFTY IT 11174.85 -0.34% -0.34% -0.34%

NIFTY Media 2627.45 -0.21% -0.21% -0.21%

NIFTY Metal 1830.3 0.19% 0.19% 0.19%

NIFTY Pharma 11979.85 0.14% 0.14% 0.14%

NIFTY PSU Bank 2908.45 1.54% 1.54% 1.54%

NIFTY Realty 175.85 1.88% 1.88% 1.88%

Top Gainers - Nifty

Stock CMP (INR) % Chg % MTD % YTD

BOSCHLTD 19199.1 2.96% 2.96% 2.96%

TATAMOTORS 401.9 2.71% 2.71% 2.71%

ADANIPORTS 267.55 2.55% 2.55% 2.55%

PNB 117.6 1.64% 1.64% 1.64%

ULTRACEMCO 2824 1.56% 1.56% 1.56%

Top Losers - Nifty

Stock CMP (INR) % Chg % MTD % YTD

GAIL 369.75 -1.43% -1.43% -1.43%

NTPC 144.5 -1.20% -1.20% -1.20%

HCLTECH 845.85 -1.08% -1.08% -1.08%

ZEEL 432.9 -0.99% -0.99% -0.99%

TATASTEEL 257.4 -0.92% -0.92% -0.92%

Bulk Deals - NSE

Security Name Client Name Buy/Sell Quantity Price Value (in Cr.)

Jet Airways (India) Ltd. N.K. SECURITIES SELL 908279 759.28 68.96

Jet Airways (India) Ltd. N.K. SECURITIES BUY 908279 758.99 68.94

Majesco Limited N.K. SECURITIES SELL 126228 707.89 8.94

Majesco Limited N.K. SECURITIES BUY 126228 707.5 8.93

Subex Limited DEUTSCHE BANK AG LONDON SELL 6100000 12.44 7.59

Subex Limited JMP SECURITIES PVT LTD BUY 5934174 12.5 7.42

GM Breweries Ltd. N.K. SECURITIES SELL 74112 911.15 6.75

GM Breweries Ltd. N.K. SECURITIES BUY 74112 910.75 6.75

Subex Limited JMP SECURITIES PVT LTD SELL 4081470 12.5 5.10

Subex Limited ADROIT FINANCIAL SERVICES PRIVATE LIM- SELL 2971951 12.43 3.69

Delivery Spurt stocks

Stock Name Day's del. Vol. Del. Vol. spike Price change

Visagar Polytex 134802 2257% 1.9%

Opto Circuits 9691745 1171% 12.6%

Godfrey Phillips 86105 1053% 3.3%

SREI Infra. Fin. 3653009 730% 19.8%

Kaveri Seed Co. 860421 677% 1.8%

ITD Cem 63808 618% 3.1%

Rel. Indl. Infra 281684 514% 2.6%

Shrenuj & Co. 55985 503% 4.9%

BF Utilities 395814 373% 6.7%

Jai Corp 1263435 372% 6.0%



January 4, 2016

Current Portfolio and Performance Summary as on 1st January’16

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

Repco Home Finance Lim- Financial Services 7/21/2015 5.5% 683 701

HCL Technologies IT 10/29/2015 9.1% 882 846

PI Industries Fertilisers & Pesticides 7/23/2015 5.2% 659 663

Dabur India Consumer Goods 8/5/2015 7.2% 296 276

Hero MotoCorp Auto 8/13/2015 7.8% 2,660 2,686

MCX Financial Services 8/21/2015 4.4% 1,067 927

Maruti Suzuki India Auto 9/8/2015 8.3% 4,088 4,639

Dewan Housing Finance Financial Services 10/19/2015 7.4% 237 236

Bata India Consumer Goods 11/23/2015 7.8% 488 516

Alembic Pharmaceuticals PHARMACEUTICALS 12/8/2015 7.7% 698 688

Cummins India Industrial Manufacturing 12/17/2015 7.3% 1,022 1,039

Axis Bank Financial Services 12/30/2015 7.3% 458 450

Cash Cash 15%

Total Total 100%

*4.5% was bought at 983



January 4, 2016

Historical Performance as on 1st January’15

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

Religare Alpha 0.84% 2.11% 0.40% 11.59% 17.70%

Nifty 0.10% 0.15% -6.15% -3.87% 1.00%

Outperformance 0.73% 1.95% 6.54% 15.46% 16.70%



January 4, 2016

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 4, 2016

Ajay Kumar Srivastava [email protected]

Ajay Pasari, CFA [email protected]

Ajit Mishra [email protected]

Ashish Bansal [email protected]

Gaurav Sharma [email protected]

Swati Saxena [email protected]

Manoj M Vayalar [email protected]

Sairam Seetharaman [email protected]

Vipin Kumar [email protected]

Team Members



January 4, 2016

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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]

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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

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