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Religare Morning Digest

March 21, 2016

Nifty Outlook

Nifty finally managed to cross its hurdle of 7600 after two weeks of struggle and gained of

over a percent on Friday. Sentiments were positive from the beginning in response to firm

global cues and strong opening in the rupee, but actual trigger came in the later half with

strong buying interest in the index majors across the board except pharma.

Now, 7690-7800 is what we are eyeing in Nifty; however, finding a trade won’t be easy due

to excessive volatility in stocks. So, we suggest focusing more on the stock selection and

limiting positions only to fundamentally sound counters. Though no particular sector has

emerged as favourite in the recent rebound, but we believe private banking, auto, IT and

select counters from capital good space to continue to do well.

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

NIFTY 7350 7700 7400

Sectors to watch

Sector Name Outlook

CEMENT STABLE

OIL N GAS STABLE

BANKS STABLE

News Religare Super Ideas**

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

Category Amt MTD YTD

FII 745 9815 (25764)

DII -168 (5561) 88593

NO OF CON-

TRACTS

TURNOVER IN CR

IDXFUTS 353325 18838

IDXOPT 4437018 246082

STK-

FUTS 553373 25683

Reliance Power board approved issue of non-convertible debentures for an aggregate

amount not exceeding Rs 1000 crore.

Torrent Pharmaceuticals has successfully obtained the Establishment Inspection Report

from the United States Food and Drug Administration for its plant located at Dahez SEZ, in

Gujarat.

Glenmark Pharmaceuticals has received tentative approval from the US health regulator

for its generic version of Vimpat Oral Solution, used in treatment of epilepsy.

Derivative Ideas **

Instrument B/S Lot INITIATION

RANGE SL TARGET

BANKBARODA

APRIL FUTS BUY 3100 144-145 138 160

*FII & DII data as on 17th March 2016

Scrip Buy/Sell CMP Initiation

Range SL Target

UPL BUY 441 440-442 422 480

HAVELLS BUY 292.20 290-293 282 315

**Please note that the given technical and derivative recommendations will be

considered as initiated only if they trades within the given range on the

recommended date.



March 21, 2016

Religare Super Ideas

Investment Pick - SML Isuzu Limited

SMLISUZU

SML Isuzu Limited (SMLI) is engaged in the business of manufacturing Light commercial vehicles. The company manufactures buses, trucks and other customized vehicles like Ambulances, Prison van, Refrigerated van, etc. SML Isuzu is mainly concentrated in 5 to 12 tonnes GVW segment.

Key investment rationales are investment plan, focus on niche segment, collaboration with Isuzu Motors and operational leverage benefits.

Scrip CMP Target Duration Recommendation Price

SMLISUZU 750.70 1150 9-12 Months 869

BANKBARODA added 10.96% in open interest in

the month of April contract. We expect it to test

160 levels in short term.

Strategy:- BUY BANKBARODA APRIL FUTS @

144-145, SLOSS 138, TARGET 160.

Derivative Ideas

UPL Limited (UPL) Havells India Limited (HAVELLS)

UPL closed above its 200 EMA levels with decent

volumes, indicating strength. Current chart pattern

indicates breakout possible in coming sessions.

Hence, traders can buy it in range of 440-442, for

targets of 480.

Unlike benchmark index Nifty, HAVELLS is trading

above its long term average(200 EMA) on daily chart.

On Friday i.e. 18 March’16, it settled near days high,

indicating momentum to continue further.



March 21, 2016

Market Snapshot

Sectoral Indices Performance

Index Closing % Change % MTD % YTD

NIFTY Auto 7,663 -0.12% 8.0% -7.2%

NIFTY Bank 15,444 -0.11% 10.7% -8.7%

NIFTY Energy 8,229 0.75% 7.4% -4.1%

Nifty Financial Services 6,364 -0.29% 9.0% -9.8%

NIFTY FMCG 19,445 0.56% 6.1% -3.7%

NIFTY IT 10,924 1.11% 6.3% -2.6%

NIFTY Media 2,294 0.46% 5.9% -12.9%

NIFTY Metal 1,832 -0.04% 12.1% 0.3%

NIFTY Pharma 11,227 -1.36% 0.5% -6.2%

NIFTY PSU Bank 2,357 0.32% 15.7% -17.7%

NIFTY Realty 147 -0.95% 12.5% -15.1%

Top Gainers - Nifty

Stock CMP (INR) % Chg % MTD % YTD

VEDL 92.30 7.01% 30.7% 2.1%

HINDALCO 85.20 5.19% 23.9% 0.5%

ACC 1,337.20 4.99% 12.0% -1.7%

TCS 2,425.85 3.14% 11.4% -0.5%

GAIL 364.35 3.13% 19.4% -2.9%

Top Losers - Nifty

Stock CMP (INR) % Chg % MTD % YTD

LUPIN 1,554.40 -7.16% -11.4% -15.4%

SUNPHARMA 816.00 -1.36% -4.4% -0.5%

BPCL 856.90 -0.92% 11.4% -4.0%

POWERGRID 136.85 -0.83% 5.2% -3.0%

MARUTI 3,621.40 -0.39% 11.9% -21.6%

Bulk Deals - NSE

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

NIIT Limited GLOBAL SOLUTIONS PRIVATE LIMITED BUY 3388492 78.75 26.68

NIIT Limited RENUKA V THADANI SELL 3388492 78.75 26.68

NIIT Limited PACE INDUSTRIES PRIVATE LIMITED BUY 1862608 78.75 14.67

NIIT Limited NEETI PAWAR SELL 1862608 78.75 14.67

Alok Industries Limited ADROIT FINANCIAL SERVICES PRIVATE SELL 8332792 5.34 4.45

Alok Industries Limited ADROIT FINANCIAL SERVICES PRIVATE BUY 8290612 5.33 4.42

Rushil Decor Limited MARFATIA NISHIL SURENDRA SELL 166098 222.33 3.69

Rushil Decor Limited MARFATIA NISHIL SURENDRA BUY 166098 219.73 3.65

Reliance Indl Infra Ltd SHAASTRA SECURITIES TRADING PRIVATE SELL 82305 428.81 3.53

Reliance Indl Infra Ltd SHAASTRA SECURITIES TRADING PRIVATE BUY 82305 428.54 3.53

Delivery Spurt stocks

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

Page Industries 170,190 2329% 2.16%

Kansai Nerolac 1,217,336 2293% 1.09%

Rajesh Exports 1,614,019 1969% 4.41%

Shrenuj & Co. 144,800 1460% -4.79%

Hathway Cable 2,551,471 1432% -1.66%

Mahindra Life. 170,827 902% -0.54%

Rattanindia Pow. 11,850,244 830% -4.76%

Emami 1,055,700 798% 21.15%

Supreme Inds. 354,385 732% 5.70%

Tube Invest- 588,673 729% 0.87%

*Bulk deals data as on March 17, 2016

*Sectoral Indices data as on March 17, 2016



March 21, 2016

Corporate Action Calendar— March 2016 (Cash Dividend)

Sun Mon Tue Wed Thu Fri Sat

20 21

Hero MotoCorp Ltd

22

Adani Ports & Special Economic

Zone Ltd

23 24 25 26



March 21, 2016

Current Portfolio and Performance Summary as on 18th March’16

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

HCL Technologies IT Oct 29, 2015 9.8% 932* 824

Hero MotoCorp Auto Aug 13, 2015 9.1% 2,660 2,831

Dewan Housing Finance

Corporation Financial Services Feb 10, 2016 14.3% 193* 177

Bata India Consumer Goods Nov 23, 2015 8.3% 488 489

Maruti Suzuki India Auto Mar 14, 2016 9.9% 3,663 3,621

Dabur India Consumer Goods Mar 14, 2016 10.0% 251 250

MT Educare Services Mar 14, 2016 10.2% 159 162

CRISIL Financial Services Mar 14, 2016 10.2% 1,785 1,801

Cash Cash 18.1%

Total Total 100%

*Weighted average price

*4.5% HCL Tech was bought at 983

*7.5% DHFL was bought at 237



March 21, 2016

Historical Performance as on 18th March’16

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

Religare Alpha 2.30% -8.45% -7.87% -9.38% 5.80%

Nifty 7.89% -3.06% -4.73% -11.93% -3.55%

Outperformance -5.59% -5.39% -3.14% 2.55% 9.35%



March 21, 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.



March 21, 2016

Hitesh Agrawal [email protected]

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]

Vipin Kumar [email protected]

Team Members



March 21, 2016

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