religare morning digest pick -talwalkars better value fitness ltd talwalkars better value fitness...

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Religare Morning Digest

June 19, 2017

Nifty Outlook

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

NIFTY 9640 9700 9500

Nifty settled almost unchanged in a volatile trade, continuing its prevailing trend. However, there was no shortage of trading opportunities on stock specific front, which kept the participants busy. Mostly sectoral indices traded in line with the benchmark and ended on flat note, in absence of any fresh trigger.

We see strong possibility of Nifty resuming uptrend next week and traders should align their positions accordingly. The index majors are performing consistently in line the benchmark index and thus we reiterate our view to focus on them. In fact, it’s easier to hedge a trading portfolio with index stocks during corrective phase.

Sectors to watch

Sector Name Outlook

AUTO STABLE

FMCG STABLE

IT WEAK

News

Religare Super Ideas**

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

Category Amt. MTD FYTD

FII -645 -949 -8031

DII 855 2142 15665

NO OF CON-

TRACTS

TURNOVER IN CR

IDXFUTS 129914 10276

IDXOPT 2509867 204276

STKFUTS 592077 42176

Derivative Ideas **

Ipca laboratories has received a communication from USFDA stating that all the drugs manufactured at the Company's API manufacturing facility at Ratlam (Madhya Pradesh), SEZ Indore (Pithampur) and Piparia (Silvassa) will be henceforth refused admission into the United States. The ban of all drugs will continue until the company can demonstrate that the drugs manufactured sites and intended for the US market are in compliance with Current Good Manufacturing Practice (CGMP). API Chloroquine phosphate manufacturing at Ratlam unit is an exception, which will be reconsidered if shortage and/or medical necessity implication change.

Pennar Industries and PEBS intend to set up a 50:50 joint venture in United States of America to supply their goods and service. The joint venture will help both the companies to increase their addressable market and contribute to higher revenue and profitability.

Century Plyboards (India)’s subsidiary, Century Ply (Singapore), in Singapore has acquired 49% stake in Huesoulin Wood Processing Factory Company, thereby making it an associate company. Huesoulin Wood Processing Factory Company is engaged in manufacturing and trading of plywood, veneer and all wood products and providing related services.

*FII & DII data as on 15th June 2017

Scrip Buy/Sell CMP Initiation

Range SL* Target

CENTURYTEX BUY 1110.80 1090-

1100 1070 1160

FEDERALBNK BUY 120.90 117-119 114 128

**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

INITIA-TION

RANGE

SL TAR-GET

BANKNIFTY

24100CE&

22800PE

SELL 40 54 68 25



June 19, 2017

Religare Super Ideas

Investment Pick - Talwalkars Better Value Fitness Ltd

Talwalkars Better Value Fitness Ltd (TBVFL) reported inline numbers for Q4FY17 with a revenue and PAT growth of 17% & 23.6% YoY. Led by cost efficiencies,

EBITDA margins expanded 274bps YoY to 70.7%, which was encouraging.

With steady gym additions, healthy same store sales growth and higher contribution from value added services, we expect revenue and profit growth to remain

healthy. We maintain a BUY with target price of Rs 328.

Scrip CMP Target Duration Recommendation Price

TALWALKARS 306.15 328 9-12 Months 277

BankNifty is likely to be in a range of around 23100-23800 in the short term. The highest open interest for 29 June expiry is at 2300put and 23500call.

Strategy: Sell BankNifty 29 june 24100ce@18 and sell 22800pe@36,net prem at 54,sloss at 68,target 25.

Derivative Ideas

Century Textiles & Industries Limited

(CENTURYTEX)

The Federal Bank Limited (FEDERALBNK)

After a decent correction from its 52-week high,

CENTURYTEX has swiftly rebounded from the

support area of medium term moving averages on

daily chart and formed a fresh buying

pivot. Traders can accumulate fresh in the given

range.

We are reiterating our long recommendation on

FEDERALBNK with the updated levels as it was not

initiated earlier.



June 19, 2017

Religare Investment Calls

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

Nandan Denim 5-Jan-16 150 183 22.0% 128.3

Atul Auto 22-Mar-16 506 580 14.6% 420.5

Cigniti Technologies Ltd. 5-Oct-16 419 538 28.3% 261.3

Fiem Industries 26-Dec-16 1,089 1,315 20.8% 956.5

Greenply Industries 3-Feb-17 268 304 13.4% 282.3

Arman Financial Services 22-Feb-17 226 340 50.0% 183.6

Castrol India 7-Mar-17 412 483 17.1% 411.3

Berger Paints (I) Ltd 15-Mar-17 230 273 18.7% 250.6

Mayur Uniquoters Ltd 18-Apr-17 380 478 25.8% 363.0

CRISIL 26-Apr-17 1,911 2,540 32.9% 1,884.5

Zee Entertainment Enterprises 12-May-17 530 592 11.6% 508.1

Force Motors 17-May-17 4,497 5,210 15.9% 4,235.2

Indo Count Industries Ltd. 17-May-17 198 240 21.2% 181.2

Huhtamaki PPL Ltd 19-May-17 253 266 5.3% 249.8

Bajaj Finance Ltd 22-May-17 1,268 1,454 14.7% 1,410.3

SML Isuzu 25-May-17 1,247 1,525 22.3% 1,220.4

Sutlej Textiles 29-May-17 902 1,032 14.5% 907.9

Jain Irrigation Systems Ltd. 30-May-17 97 125 28.8% 106.5

Srikalahasthi Pipes Ltd 30-May-17 320 416 29.7% 353.1

Wonderla Holidays 31-May-17 378 430 13.7% 375.6

Tv Today Network 2-June-17 263 335 27.3% 259.1

The Byke Hospitality 6-June-17 190 242 27.4% 189.4

Mold-Tek Packaging Limited 7-June-17 274 340 24.1% 286.3

Magma Fincorp Ltd 9-June-17 135 163 20.5% 153.2

Talwalkars Better Value Fitness 12-June-17 277 328 18.3% 306.2



June 19, 2017

Corporate Action Calendar — June 2017 (Stock Split)

Sun Mon Tue Wed Thu Fri Sat

18 19 20 21 22

Arcotech Ltd

23 24

Corporate Action Calendar — June 2017 (Cash Dividend)


18 19

Torrent Pharmaceuti-cals Ltd

Damodar Industries Ltd

20

ICICI Bank Ltd

Punjab & Sind Bank

Indian Overseas Bank

21

Shriram Transport Finance Co Ltd

Supreme Industries Ltd

Havells India Ltd

Virat Industries Ltd

GHCL Ltd

PC Jeweller Ltd

22

GOA Carbon Ltd

Welspun India Ltd

UPL Ltd

Shriram City Union Finance Ltd

PTL Enterprises Ltd

Welspun Corp Ltd

TVS Electronics Ltd

Hindustan Unilever Ltd

Bank of Baroda

Corp Bank

Munjal Auto Industries Ltd

Voith Paper Fabrics India Ltd

23

Steelcast Ltd

24

Corporate Action Calendar — June 2017 (Stock Dividend)


18 19 20

ICICI Bank Ltd

21 22

Kitex Garments Ltd

Godrej Consumer Products Ltd

23 24



June 19, 2017

Current Portfolio and Performance Summary as on 16th June’17

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

Emami Consumer Goods August 3, 2016 9.0% 1,151 1,113

Castrol India Energy August 5, 2016 9.0% 425 411

Sml Isuzu Auto February 6, 2017 9.0% 1,265 1,220

Amara Raja Batteries Auto March 22, 2017 10.6% 868 840

Power Grid Corporation of India

Energy April 12, 2017 11.5% 200 210

Bajaj Finance Financial Services May 5, 2017 11.3% 1,292 1,410

TV Today Network Media & Ent. May 10, 2017 9.5% 279 259

Tata Motors Auto May 26, 2017 9.4% 475 456

Capital First Financial Services May 26, 2017 10.1% 705 723

Cash 10.6%

Total 100%



June 19, 2017

Historical Performance as on 16th June’17

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

Religare Alpha -2.4% 8.5% 14.9% 15.3% 36.6%

Nifty 0.8% 4.7% 17.8% 17.8% 21.6%

Outperformance -3.2% 3.8% -2.8% -2.5% 15.0%



June 19, 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.



June 19, 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]

Siji A Philip [email protected]

Suhanee Shome [email protected]

Vipin Kumar [email protected]

Team Members



June 19, 2017

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No

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