religare morning · pdf filekbs india limited kiri industries ltd. metalyst forgings ocl iron...
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Religare Morning Digest
November 30, 2017
Nifty Outlook
VWAP (Expiry till date) Max OI (Call) Max OI (Put)
NIFTY 10350 10500 10000
The equity benchmark indices started the session on a positive note, but witnessed resistance at higher levels, as the Nifty hovered in a narrow range throughout the trading day and ended down marginally. Broader market indices also performed broadly in line with the benchmark. The sectoral indices showed mixed performance with auto, consumer durables, FMCG, healthcare, capital good and oil&gas being the gainers, whereas banking, IT and metal were among the losers.
While the underlying sentiments remain positive, some consolidation cannot be ruled out after the recent smart upmove. Being F&O expiry day, volatility will continue to remain high. RBI Monetary Policy, Macro data (Q2FY18 GDP numbers) and global developments will be tracked keenly by the market participants. Investors can continue to accumulate fundamentally sound stocks on dips.
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 12 -11156 -68322
DII -428 7265 73357
NO OF CON-
TRACTS
TURNOVER IN CR
IDXFUTS 212180 18095
IDXOPT 6597029 580424
STKFUTS 1410971 99380
Derivative Ideas **
NTPC has floated a tender to acquire commissioned stressed coal-based power plants in the country. At present, out of the 40 GW stressed coal-based power generation capacity, about 12 GW capacity worth around Rs 50,000cr commissioned after April 1, 2014 and is eligible under this tender.
Jet Airways (India) and Air France - KLM have signed a landmark 'Enhanced Cooperation Agreement' for the development of their operations between Europe and India. In addition to the airlines' enhanced cooperation agreement, Air France KLM Cargo and Jet Airways Cargo have also signed a Memorandum of Understanding which aims to strengthen their cooperation in the cargo sector.
Power Mech Projects has received an order under Make in India scheme from Andhra Pradesh Medtech Zone (AMTZ), an enterprise under the Government of Andhra Pradesh. The order is valued at Rs 357cr and includes construction of ultra-modern medical equipment manufacturing and testing facility located at Visakhapatnam, Andhra Pradesh.
*FII & DII data as on 28th November 2017
Scrip Buy/Sell CMP Initiation
Range SL* Target
HAVELLS BUY 521.55 512-515 498 542
RELCAPITAL SELL DEC
FUTS 442.30 450-448 462 424
Instrument B/S Lot INITIATION
RANGE SL
TAR-GET
ESCORTS BUY
FUTS 1100 697-699 683 726
**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 30, 2017
Investment Pick - Nilkamal Ltd.
Nilkamal Ltd's Q2FY18 numbers were broadly in line with our estimates. Net revenue de-grew marginally by 0.8% YoY, impacted by poor volume offtake in
Plastics division due to GST transition. However, operating profit & PAT increased by 11.7% & 5.9% YoY respectively, while operating margins improved by 139bps YoY, which was encouraging.
We remain positive on Nilkamal's medium to long term growth prospects, given robust outlook of plastics industry and company's efforts towards brand building,
distribution expansion and enhanced product offerings. We maintain BUY on the stock with target price of Rs 2,097.
Scrip CMP Target Duration Recommendation Price
NILKAMAL 1,798.60 2,097 9-12 Months 1,791
ESCORTS added around 25% 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 ESCORTS December futs as per
levels mentioned below.
Strategy: Buy ESCORTS Dec futs BETWEEN
697-699, SL-683, TGT-726.
Derivative Ideas Religare Super Ideas
Havells India Limited (HAVELLS) Reliance Capital Limited (RELCAPITAL)
We are reiterating our long recommendation in
HAVELLS again as it was not initiated earlier.
After a sharp correction, RELCAPITAL has
rebounded of late but failed to cross its price
resistance zone around 464. Keeping in mind its
overall trend, we advise traders to use any bounce
to create fresh short positions.
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Religare Morning Digest
November 30, 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% 265.1
Fiem Industries 26-Dec-16 1,089 1,315 20.8% 908.8
Arman Financial Services 22-Feb-17 226 340 50.0% 265.9
Indo Count Industries Ltd. 17-May-17 198 240 21.2% 121.2
SML Isuzu 25-May-17 1,247 1,525 22.3% 914.3
APL Apollo Tubes 12-July-17 1,596 2,352 47.4% 1,942.7
CRISIL 01-Aug-17 1,858 2,419 30.2% 1,850.2
LIC Housing Finance 09-Aug-17 681 748 9.8% 599.4
Eicher Motors Ltd 09-Aug-17 31,630 40,467 27.9% 30,220.3
Wonderla Holidays 17-Aug-17 339 430 26.8% 353.7
The Byke Hospitality 17-Aug-17 195 242 24.1% 167.3
Jain Irrigation Systems Ltd. 23-Aug-17 93 125 34.4% 114.7
Garware Wall Ropes Ltd 12-Sept-17 920 1,083 17.7% 913.0
Talwalkars Better Value Fitness 18-Sept-17 288 346 20.0% 269.5
Tata Communications 18-Sept-17 708 822 16.1% 692.1
Century Plyboards 07-Nov-17 294 312 6.1% 314.1
Kajaria Ceramics Ltd. 09-Nov-17 690 900 30.4% 732.7
NRB Bearings 09-Nov-17 144 173 20.1% 152.8
Srikalahasthi Pipes Ltd 10-Nov-17 362 457 26.3% 418.2
Force Motors 13-Nov-17 3,328 4,642 39.5% 3,291.4
Castrol India Ltd 15-Nov-17 396 446 12.5% 402.3
Minda Corporation 15-Nov-17 168 217 29.1% 192.9
Mold-Tek Packaging Limited 15-Nov-17 316 374 18.4% 313.8
Jamna Auto Industries 16-Nov-17 60 78 30.0% 61.7
Manpasand Beverages 17-Nov-17 408 474 16.2% 393.1
Sutlej Textiles 17-Nov-17 96 116 21.2% 99.1
Swaraj Engines Ltd 21-Nov-17 1,888 2,252 19.3% 1,967.9
Bharat Electronics Ltd. 22-Nov-17 177 217 22.6% 189.0
Symphony Ltd 24-Nov-17 1,592 1,714 7.6% 1,632.8
Asian Granito India Ltd. 29-Nov-17 506 642 26.9% 505.0
Nilkamal Ltd. 29-Nov-17 1,791 2,097 17.1% 1,798.6
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Religare Morning Digest
November 30, 2017
Corporate Action Calendar — November 2017 (Cash Dividend)
Sun Mon Tue Wed Thu Fri Sat
26 27 28
Care Ratings Ltd
Sadbhav Infrastructure Project
29
New India Assurance Co Ltd
Mayur Uniquoters Ltd
30 01 02
Corporate Action Calendar — November 2017 (Stock Split)
Sun Mon Tue Wed Thu Fri Sat
26 27
Fischer Chemic Ltd
28 29
Akar Auto Industries Ltd
30 01 02
Corporate Action Calendar — November 2017 (Acquisition)
Date Target Company Acquirer Company
11/27/2017 Merit Industries Ltd National Fittings Ltd
11/30/2017 Tasty Bite Eatables Ltd Mars Inc
11/30/2017 Capital India Finance Ltd Trident Holding LLP
11/30/2017 Erkunt Traktor Sanayii AS Mahindra & Mahindra Ltd
11/30/2017 Integrated Cleanroom Technologies Ltd Takasago Thermal Engineering Co Ltd
11/30/2017 Salanpur Sinters Pvt Ltd Maithan Alloys Ltd
Corporate Action Calendar — November 2017 (Stock Buyback)
Sun Mon Tue Wed Thu Fri Sat
26 27 28 29
Wipro Ltd
30
Infosys Ltd
01 02
Economic Calendar — November 2017
Sun Mon Tue Wed Thu Fri Sat
26 27
28 29
30
Fiscal Deficit INR Crore
Eight Infrastructure Industries
GVA YoY
GDP YoY
01
Nikkei India PMI Mfg
02
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Religare Morning Digest
November 30, 2017
Result Calendar — November 2017
Sun Mon Tue Wed Thu Fri Sat
26 27
ALFAVISION OVERSEAS
ARCHIDPLY Atishay Ltd
Castex Technologies
CHOKSI
LABORATORIES LTD.
Dalmia Industrial Development Ltd
ECOPLAST LTD.-$
GRP LTD.
GUJARAT AUTOMOTIVE GEARS
INDIAN TONERS &
DEVELOPERS LTD.-$
IRIS Business Services
KBS INDIA LIMITED
KIRI INDUSTRIES LTD.
Metalyst Forgings
OCL IRON AND STEEL
PSP Projects Ltd
ROLLATAINERS LTD.
SIMMONDS MARSHALL
SINGER INDIA LTD.
SIYARAM SILK MILLS TULASEE BIO-ETHANOL
VADILAL INDUSTRIES
VADILAL ENTERPRISES
SOUTHERN GAS LTD.
28
ADF FOODS LTD.-$
Adhunik Industries Ltd
ALLIANCE INTEGRATED
METALIKS LTD.
ARMS PAPER LTD.
Assam Company (India) Limited
BARON INFOTECH LTD.
BIRLA COTSYN (INDIA) LTD.
CHEVIOT CO.LTD.-$
HINDUSTAN FOODS LTD.
IL&FS ENGINEERING AND
CONSTRUCTION COMPANY
INTERNATIONAL
COMBUSTION (INDIA) LTD.
NAVKAR BUILDERS LTD.
Nutraplus India Limited
Ortel Communications Ltd
PH TRADING LTD.
RAINBOW PAPERS LTD.-$
RCI Industries & Technologies
Ltd
Retro Green Revolution Ltd
RICOH INDIA LTD.
RPP INFRA PROJECTS LTD.
UNIQUE ORGANICS LTD.
WALCHANDNAGAR
INDUSTRIES LTD.
29
ATLAS CYCLES (HARYANA)
LTD.
BIJOY HANS LTD.
FIRST FINANCIAL SERVICES
LTD.
Genus Paper & Boards Ltd
INDO TECH
TRANSFORMERS LTD.
KAKATIYA CEMENT SUGAR
& INDUSTRIES LTD.
Kamdhenu Ltd
MUKTA ARTS LTD.
NETLINK SOLUTIONS
(INDIA) LTD.
NATIONAL OXYGEN LTD.
PCS TECHNOLOGY LTD.
PRAKASH STEELAGE LTD.
PREMIER EXPLOSIVES LTD.
SAFARI INDUSTRIES (INDIA)
Share India Securities Ltd
STELLANT SECURITIES
(INDIA) LTD.
TARA JEWELS LTD.
TRIBHOVANDAS BHIMJI
ZAVERI LTD.
TIPS INDUSTRIES LTD.
TRANSPEK INDUSTRY
30
ADVANI HOTELS &
RESORTS (INDIA) LTD.
ANDHRA PRADESH
TANNERIES LTD.
ARCHIES LTD.
AURO LABORATORIES
BLISS GVS PHARMA
CEREBRA INTEGRATED
TECHNOLOGIES LTD.
CHD DEVELOPERS
CRAVATEX LTD.
DATAMATICS GLOBAL
SERVICES LTD.
Excel Realty N Infra Ltd
GRAVISS HOSPITALITY
Ishaan Infrastructures
and Shelters Ltd
MPIL CORPORATION
NIDHI GRANITES LTD.
NUWAY ORGANIC
NATURALS INDIA LTD.
ORBIT EXPORTS LTD.
Remi Edelstahl Tubulars
R.J.SHAH & CO.LTD.
SAT INDUSTRIES LTD.-$
SUDAL INDUSTRIES LTD.
UFO Moviez India Ltd
WARREN TEA LTD.-$
West Leisure Resorts
01
8K MILES SOFTWARE SER-
VICES LTD.
ASHISH POLYPLAST LTD.
Bhagyanagar Properties Ltd
BHAGYANAGAR INDIA LTD.
CHOKHANI INTERNATIONAL
COCHIN MALABAR ESTATES
& INDUSTRIES LTD.
DYNAVISION LTD.
EAST BUILDTECH LTD.
INDIA GELATINE &
CHEMICALS LTD.-$
KEYNOTE CORPORATE
SERVICES LTD.
KND ENGINEERING
TECHNOLOGIES LTD.
Mahindra Logistics Ltd
RAINBOW DENIM LTD.
RAMA PETROCHEMICALS
SETCO AUTOMOTIVE LTD.
SOVEREIGN DIAMONDS LTD.
Surana Solar Limited
Surana Telecom And Power
Viaan Industries Ltd
VIMTA LABS LTD.-$
VMS INDUSTRIES LTD.
YASH PAPERS LTD.-$
02
ASIAN FERTILIZERS LTD.
BENGAL TEA & FABRICS LTD.
CHEMBOND CHEMICALS LTD.-
HIGH ENERGY BATTERIES
(INDIA) LTD.
Integra Garments And Textiles
MAZDA LTD.-$
NCL INDUSTRIES LTD.-$
RICO AUTO INDUSTRIES LTD.
TIL LTD.
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Religare Morning Digest
November 30, 2017
Current Portfolio and Performance Summary as on 29th November’17
Stock Sector Entry Date Weight Reco price (`) CMP (`)
Amara Raja Batteries Auto March 22, 2017 9.9% 868 806
RBL Bank Financial Services July 11, 2017 9.2% 532 521
Muthoot Finance Financial Services July 26, 2017 9.2% 482 454
Talwalkars Better value
Fitness Health Fitness July 27, 2017 8.8% 302 269
Va Tech Wabag Infrastructure August 16, 2017 9.0% 636 600
Nilkamal Plastic Products August 17, 2017 10.3% 1,682 1,799
Can Fin Homes Financial Services September 19, 2017 9.8% 572 490
CARE Financial Services September 20, 2017 9.7% 1,493 1,373
Tejas Networks Telecom Services November 3, 2017 10.2% 387 403
Cash 14.0%
Total 100%
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Religare Morning Digest
November 30, 2017
Historical Performance as on 29th November’17
Performance Matrix 3-Month 6-Month 1-Year Since Inception
Religare Alpha 6.4% 2.2% 14.7% 40.3%
Nifty 5.8% 7.7% 27.3% 31.4%
Outperformance 0.6% -5.6% -12.5% 8.9%
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Religare Morning Digest
November 30, 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 30, 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 30, 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.