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Religare Morning Digest

November 1, 2016

Nifty Outlook

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

NIFTY 8660 9000 8500

Nifty upheld its sideways tone on Friday as well and managed to end marginally higher. It started with a down tick but rebound in select index majors aided gradually recovery from the bottom as the session progressed. On sectoral front, metal and media topped the gainers list, closely followed by auto and realty pack. Market breadth too was inclined on the advancing side, indicating buying interest in midcap and smallcap at lower level.

We have long weekend ahead, except an hour long special Diwali Muhurat session on Sunday and participants will now react to global cues in early trade on Tuesday. We reiterate our view to hold positive yet cautious stance and focus more on the position management at present.

Sectors to watch

Sector Name Outlook

FINANCIAL STABLE

INFRA STABLE

PHARMA STABLE

News

Religare Super Ideas**

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

Category Amt. MTD YTD

FII -470 -3506 44148

DII 857 6769 948

NO OF CON-

TRACTS

TURNOVER IN CR

IDXFUTS 208810 14524

IDXOPT 2390102 171927

STKFUTS 551098 38613

Derivative Ideas **

Bajaj Auto reported a 6.7% increase in Net Profits for Q2FY17 to Rs. 1,121.7 Cr, as compared to Rs. 1,052.2 Cr in the corresponding quarter last year. Revenue for the quarter increased 0.4% to Rs. 6,432.3 Cr, as compared to Rs. 6,407.5 Cr previously. Bajaj Auto sold 10.3 lakh units in Q2FY17, registering a 2.3 percent de-growth compared with 10.56 lakh units sold in Q2FY16, hit by big fall in export markets Nigeria and Egypt.

Grasim reported a 50.4% increase in Net Profits for Q2 at Rs. 846 Cr, against Rs. 562.5 Cr in the corresponding quarter last year. Net sales rose 2.7% to Rs. 9261.8 Cr from Rs. 9016.2 Cr previously. Operating Profit (EBITDA) rose 29% YoY to Rs. 2,098 Cr.

Eicher Motors reported a 35% increase in Total Income from Operations to Rs. 1,981 Cr in Q2 as compared to Rs. 1,468 Cr in the corresponding quarter last year. Net profit increased by 45% (YoY) to Rs. 412.9 Cr, against Rs. 284.8 Cr previously.

*FII & DII data as on 27th October 2016

Scrip Buy/Sell CMP Initiation

Range SL* Target

BAJAJ-AUTO BUY 2848.10 2845-2855 2760 3060

ANDHRA-

BANK

SELL NOV

FUT 56.60 57.50-58 59.50 55

**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

TAR-GET

NIFTY

BUY 8650 CE

75

130

180 370 BUY

8650 PE 115



November 1, 2016

Religare Super Ideas

Investment Pick - Arman Financial Services Ltd.

Incorporated in 1992, Ahmedabad based Arman Financial Services (ARFL) lends primarily in the micro-finance and two wheeler space. ARFL operates in

micro-finance through its subsidiary Namra Finance (Rs 117cr, 68% of AUM) while Vehicle financing amounts to Rs 55cr (32% of AUM).

Key rationales: i) Multi-year growth in micro-finance business ii) Value creating opportunities in newer geographies in micro-finance and foray into SME lending iii)

Steady AUM growth of 35% CAGR over FY12-FY16 iv) Stable asset quality, High NIMs and Strong ROAAs. We feel the gradual and focused growth in micro-finance, conservative lending and focus on newer geographies will drive ARFL’s AUMs while sustained NIMs and controlled costs will improve profitability.

Scrip CMP Target Duration Recommendation Price

ARMANFIN 284.10 338 9-12 Months 260

NIFTY-Huge index option buying by FIIs is

indicating a surge in volatility that can lead a swing

of around 200-300 points in Nifty.

Strategy: BUY NIFTY 8650 CE @ 130 & BUY 8650 PE

@ 115, NET PERMIUM PAID @ 245, STOPLOSS 180,

TARGET 370.

Derivative Ideas

Bajaj Auto Limited (BAJAJ-AUTO)

After the recent corrective phase, BAJAJ-AUTO

rebounded strongly on Friday i.e. on Oct, 28, taking

support from its long term moving average of 100

EMA on the daily chart. It now looks upbeat for a

strong surge ahead.

Among the PSU banking counter, ANDHRABANK

has been underperforming since long and main-

taining its downtrend. The recent rebound should

be considered as shorting opportunity.

Andhra Bank ( ANDHRABANK)



November 1, 2016

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% 435.7

Kotak Mahindra Bank 19-Aug-15 688 900 30.8% 819.4

Glenmark Pharma 10-Sep-15 1,017 1,370 34.7% 933.1

Dabur India 10-Sep-15 275 325 18.1% 291.6

HUL 10-Sep-15 803 1,050 30.8% 836.5

Bajaj Corp 3-Nov-15 416 500 20.3% 406.9

Britannia Inds 23-Dec-15 2,896 3,600 24.3% 3,312.0

Nandan Denim 5-Jan-16 150 183 22.0% 138.3

Atul Auto 22-Mar-16 506 580 14.6% 485.4

Century Plyboards 5-Jul-16 207 271 30.9% 246.5

Greenply Industries 5-Jul-16 248 322 29.8% 290.1

Talwalkars Better Valkue Fitness 22-Aug-16 252 328 30.2% 271.0

Tv Today Network 29-Aug-16 300 388 29.3% 333.9

Jamna Auto 2-Sep-16 217 272 25.3% 225.7

SML Isuzu 26-Sep-16 1,300 1,560 20.0% 1,284.4

Swaraj Engines Ltd. 3-Oct-16 1,184 1,535 29.6% 1,345.2

Cigniti Technologies Ltd. 5-Oct-16 419 538 28.3% 423.8

Arman Financial Services 14-Oct-16 260 338 30.0% 284.1



November 1, 2016

Corporate Action Calendar — November 2016 (Cash Dividend)

Sun Mon Tue Wed Thu Fri Sat

30 31 01

Asian Paints Ltd

Supreme Petrochem Ltd

Hindustan Unilever Ltd

Mastek Ltd

02

ICICI Prudential Life Insurance Co Ltd

Indiabulls Housing Finance Ltd

03

Dabur India Ltd

Foseco India Ltd

Shriram Transport Finance Co Ltd

Symphony Ltd

TVS Motor Co Ltd

Oil & Natural Gas Corp Ltd

Hester Biosciences Ltd

SQS India BFSI Ltd

Zee Learn Ltd

Jayant Agro-Organics Ltd

Hindustan Zinc Ltd

Sasken Communication Technologies Ltd

Exide Industries Ltd

04

Info Edge India Ltd

Navin Fluorine International Ltd

05

06 07

Supreme Industries Ltd

Vedanta Ltd

08

Colgate-Palmolive India Ltd

PI Industries Ltd

09

Astral Polytechnik Ltd

Sonata Software Ltd

10

Sundaram-Clayton Ltd

Transport Corp of India Ltd

11

12

Corporate Action Calendar — November 2016 (Stock Buyback)


06 07

R Systems International Ltd

08 09 10 11 12

Corporate Action Calendar — November 2016 (Stock Split)


30 31 01 02

Vama Industries Ltd

03 04 05

06 07

08 09 10 11

Indo Count Industries Ltd

12



November 1, 2016

Economic Calendar — November 2016


30 31

Fiscal Deficit INR Crore

Eight Infrastructure Industries

01

Nikkei India PMI Mfg

02

03

Nikkei India PMI Services

Nikkei India PMI Composite

04

05

06 07 08 09

Local Car Sales

10

Trade Balance

Imports YoY

Exports YoY

11

Industrial Production YoY

12

Corporate Action Calendar — November 2016 (Acquisition)

Date Target Company Acquirer Company

10/30/2016 Yatra Online Inc Terrapin 3 Acquisition Corp

10/31/2016 One97 Communications Ltd Multiple acquirers

10/31/2016 Spirotech Heat Exchangers Pvt Ltd LU-VE SpA

10/31/2016 IIInspection & Export Pvt Ltd Iii Co Ltd

10/31/2016 Discountseniorsupply.com domain Health Advance Inc

11/2/2016 Anka India Ltd Private Investor

11/10/2016 BCC Fuba India Ltd Private Investor

11/10/2016 Kwality Credit & Leasing Ltd Private Investor



November 1, 2016

Result Calendar — November 2016


30 31

HINDUSTAN BIO SCIENC-ES LTD.

Indo Cotspin Ltd

Indus Finance Ltd

KITEX GARMENTS LTD.

MAHANIVESH (INDIA) LTD.

PRIMA AGRO LTD.

PRIMA INDUSTRIES LTD.

Rajputana Investment and Finance Ltd

REGALIAA REALTY LTD.

Richfield Financial Services Ltd

Sai Jeevadhara Finance Limited

SOUTHERN LATEX LTD.

S T Services Ltd

Sunrise Asian Limited

SUNDARAM FINANCE LTD.

SWITCHING TECHNOLO-GIES GUNTHER LTD.

TATIA GLOBAL VENNTURE LTD.

TRISHAKTI ELECTRONICS & INDUSTRIES LTD.

UNIJOLLY INVESTMENTS CO.LTD.

Winy Commercial & Fiscal Services Ltd

01

APPLE CREDIT CORPORATION LTD.

CENTURY ENKA LTD.

CENTURY PLYBOARDS (I) LTD.-$

G N A Axles Ltd

HINDUSTAN MEDIA VENTURES LTD.

Kellton Tech Solutions Ltd.

MIC ELECTRONICS LTD.

Majesco Ltd

Sabrimala Leasing And Holdings Ltd

VST INDUSTRIES LTD.

02

ADVANI HOTELS & RESORTS (INDIA) LTD.

ELANGO INDUSTRIES LTD.

GSL SECURITIES LTD.

HARDCASTLE & WAUD MFG.CO.LTD.

HARITA SEATING SYSTEMS LTD.-$

HT MEDIA LTD.

IL&FS ENGINEERING AND CONSTRUCTION COMPANY LTD.

INANI SECURITIES LTD.

IL&FS INVESTMENT MANAGERS LTD.

JAYSHREE CHEMICALS LTD.

OUDH SUGAR MILLS LTD.

PREMIER EXPLOSIVES LTD.

RAVILEELA GRANITES LTD.

Sagarsoft (India) Ltd

SAINT-GOBAIN SEKURIT INDIA LTD.

SOBHAGYA MERCHANTILE LTD.

SONATA SOFTWARE LTD.

SUDITI INDUSTRIES LTD.

SUNDRAM FASTENERS LTD.

TAJGVK HOTELS & RESORTS LTD.

TRINITY LEAGUE INDIA LTD.

TVS ELECTRONICS LTD.

UPPER GANGES SUGAR & INDUSTRIES LTD.

03

AMBUJA CEMENTS LTD.

BERGER PAINTS INDIA LTD.

ICRA LTD.

MPHASIS LTD.

TTK PRESTIGE LTD.

TUBE INVESTMENTS OF INDIA LTD.

UNITED LEASING & INDUSTRIES LTD.

VIVID GLOBAL INDUSTRIES LTD.

WHEELS INDIA LTD.

WISEC GLOBAL LTD.

04

ALLAHABAD BANK

CREDIT ANALYSIS AND RESEARCH LTD.

GATI LTD.

JINDAL SAW LTD.

MUNJAL AUTO INDUSTRIES LTD.

PFIZER LTD.

Sharda Cropchem Ltd

SIDDHA VENTURES LTD.

SPENTA INTERNATIONAL LTD.

Srestha Finvest Ltd

SRI CHAKRA CEMENTS LTD.

SHREE OM TRADES LTD.

TRANSPORT CORPORA-TION OF INDIA LTD.

Titan Company Limited

TRF LTD.-$

UNITED BREWERIES LTD.

UCAL FUEL SYSTEMS LTD.

UNION BANK OF INDIA

V.S.T.TILLERS TRACTORS LTD

SOUTHERN GAS LTD.

05

AMARA RAJA BATTERIES LTD.

DENA BANK

BANK OF MAHARASHTRA

NELCAST LTD.

PUNJAB NATIONAL BANK

RANJIT SECURITIES LTD.

RAPICUT CARBIDES LTD.

RELAXO FOOTWEARS LTD.-$

REMI PROCESS PLANT & MACHINERY LTD.

SACHETA METALS LTD.

SALZER ELECTRONICS LTD.-$

SAVITA OIL TECHNOLOGIES LTD.

SREI INFRASTRUCTURE FINANCE LTD.

STERLING TOOLS LTD.-$

STI INDIA LTD.

SUMEDHA FISCAL SERVICES LTD.

Vegetable Products Ltd



November 1, 2016

Current Portfolio and Performance Summary as on 28th October’16

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

Bajaj Corp Consumer Goods May 13, 2016 8.9% 393 407

Magma Fincorp Financial Services June 30, 2016 9.5% 109 117

Sun Pharmaceutical

Industries Pharma July 15, 2016 8.7% 771 743

Apollo Hospitals

Enterprises Healthcare Services July 29, 2016 9.3% 1,362 1,340

Emami Consumer Goods August 3, 2016 10.0% 1,151 1,213

Castrol India Energy August 5, 2016 10.2% 425 458

Indiabulls Housing

Finance Financial Services August 8, 2016 9.9% 808 849

Punjab National Bank Financial Services October 3, 2016 9.7% 143 144

Minda Corporation Auto Ancillaries October 10, 2016 10.2% 109 112

Cash 13.6%

Total Total 100%



November 1, 2016

Historical Performance as on 28th October’16

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

Religare Alpha 3.5% 6.0% 20.4% 16.1% 35.2%

Nifty -0.8% -0.3% 10.0% 6.5% 9.6%

Outperformance 4.3% 6.3% 10.3% 9.6% 25.6%



November 1, 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.



November 1, 2016

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]

Vipin Kumar [email protected]

Team Members



November 1, 2016

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Yes No

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No

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No

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

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religare morning digest · religare morning digest november 1, 2016 religare super ideas ... ema on...

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