Religare Morning Digest Generation Company Limited (LPGCL) for a lump sum consideration in cash of...

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Religare Morning Digest

December 22, 2016

Nifty Outlook

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

NIFTY 8148 8300 8000

Nifty settled marginally lower in a dull trading session on Wednesday, in absence of any major cue. After flat start, it hovered in a narrow range till late but slide in last one hour of the trade pushed it into negative territory. Mostly sectoral indices followed suit and closed on flat note.

Markets are drifting gradually lower with every passing day and badly need some major positive trigger, preferably from domestic front to ease this pressure. As quoted earlier also, we feel banking holds the key for any sustainable recovery so closely watch development on that front. Meanwhile, maintain a balanced trading portfolio - a mix of long and short both.

Sectors to watch

Sector Name Outlook

ENERGY STABLE

METALS STABLE

PHARMA WEAK

News

Religare Super Ideas**

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

Category Amt. MTD YTD

FII -686 -4029 19367

DII 419 1068 21429

NO OF CON-

TRACTS

TURNOVER IN CR

IDXFUTS 144354 9406

IDXOPT 3567148 239192

STKFUTS 420246 26669

Derivative Ideas **

Reliance Communications signed a binding agreement with the US asset management company Brookfield Group to sell its tower business. The company will receive an upfront cash payment of Rs. 11,000 Cr (USD 1.6 billion) on completion of the transaction, which will be used for debt reduction. Shares closed up 6.7%.

Bajaj Hindusthan Sugar Ltd announced that its board approved the sale and transfer of co-generation power business of a capacity of 449 MW located at 14 locations to Lalitpur Power Generation Company Limited (LPGCL) for a lump sum consideration in cash of approximately Rs. 1,800 Cr.

Pharma Major Sun Pharmaceuticals completed the acquisition of 85.1% stake in Russia based JSC Biosintez.

*FII & DII data as on 20th December 2016

Scrip Buy/Sell CMP Initiation

Range SL* Target

CESC BUY 622.65 615-620 600 660

LT SELL DEC

FUT 1344.95

1340-

1350 1385 1250

**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 TARGET

NIFTY DEC

8050 PE BUY 75 18 60 30-32



December 22, 2016

Religare Super Ideas

Investment Pick - Minda Corporation

Minda Corporation is amongst the leading automotive component companies with a diversified product portfolio that encompasses Safety, Security & Restraint

Systems; Driver Information & Telematics Systems and Interior Systems for auto OEMs. These products cater to 2/3 wheelers, Passenger Vehicles, Commercial Vehicles and after-market.

We expect Minda Corp's total income to grow at CAGR of 19% between FY16-FY18E. Also profitability will improve further with recovery in demand, cost

reduction measures, localization efforts and focus on high yield products. At cmp of Rs. 95, the company is available at FY18E P/E of 12.2x, which we believe is attractive given its growth prospects and improving return ratios.

Scrip CMP Target Duration Recommendation Price

MINDACORP 91.5 117 9-12 Months 95

Nifty dec futures has seen some short buildup of

around 3-5% Open interest in the last 2 trading

session. Huge call writing was seen at 8100

strike, we expect Nifty to be 8150-8000 range in

the short term.

Strategy: BUY nifty 8050 pe@30-32,stoploss at

18,target 60.

Derivative Ideas

CESC Limited (CESC) Larsen & Toubro Limited (LT)

We reiterate buy call of CESC as it was not initiated

in previous trading session.

LT is trading weak below its important moving

averages (100/200 EMA) from past couple of

weeks, indicating down trend. Yesterday, too it

traded with negative bias and settled at day’s low.

All this goes to show bearish bias is here to last and

the stock will more likely head southwards in

coming sessions.



December 22, 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% 474.5

Kotak Mahindra Bank 19-Aug-15 688 900 30.8% 719.8

Glenmark Pharma 10-Sep-15 1,017 1,370 34.7% 941.0

Dabur India 10-Sep-15 275 325 18.1% 271.5

HUL 10-Sep-15 803 1,050 30.8% 796.8

Bajaj Corp 3-Nov-15 416 500 20.3% 358.7

Britannia Inds 23-Dec-15 2,896 3,600 24.3% 2,847.7

Nandan Denim 5-Jan-16 150 183 22.0% 111.7

Atul Auto 22-Mar-16 506 580 14.6% 421.0

Century Plyboards 5-Jul-16 207 271 30.9% 160.9

Greenply Industries 5-Jul-16 248 322 29.8% 249.3

Talwalkars Better Valkue Fitness 22-Aug-16 252 328 30.2% 233.4

Tv Today Network 29-Aug-16 300 388 29.3% 263.7

Jamna Auto 2-Sep-16 217 272 25.3% 155.3

SML Isuzu 26-Sep-16 1,300 1,560 20.0% 1,052.7

Swaraj Engines Ltd. 3-Oct-16 1,184 1,535 29.6% 1,337.4

Cigniti Technologies Ltd. 5-Oct-16 419 538 28.3% 368.0

Arman Financial Services 14-Oct-16 260 338 30.0% 175.2

Castrol India Ltd. 18-Nov-16 401 504 26.0% 371.8

Garware Wall Ropes Ltd. 23-Nov-16 567 686 21.0% 626.6

Wonderla Holidays Ltd. 25-Nov-16 324 405 25.0% 340.0

Indo Count Industries Ltd. 30-Nov-16 155 207 33.5% 158.7

VIP Industries Ltd. 30-Nov-16 118 166 41.0% 116.2

LIC Housing Finance 30-Nov-16 544 700 29.0% 543.3

Manpasand Beverages 30-Nov-16 626 854 36.4% 547.4

Zee Entertainment Enterprises 30-Nov-16 457 592 29.7% 441.5

Minda Corporation 06-Dec-16 95 117 23.2% 91.5



December 22, 2016

Corporate Action Calendar — December 2016 (Dividend)

Sun Mon Tue Wed Thu Fri Sat

18 19

Lycos Internet Limited

20 21

BANNARI AMMAN SUGARS LTD.

JVL AGRO INDUSTRIES LTD.

22 23

24

Corporate Action Calendar — December 2016 (Stock Split)


18 19 20 21

SHREE GLOBAL TRADEFIN

22 23

24

Corporate Action Calendar — December 2016 (Stock Buyback)


18 19 20 21 22

Infinite Computer Solutions (India)

23

24



December 22, 2016

Current Portfolio and Performance Summary as on 21st December’16

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

Bajaj Corp Consumer Goods May 13, 2016 9.1% 393 359

Magma Fincorp Financial Services June 30, 2016 9.8% 109 104

Apollo Hospitals

Enterprises Healthcare Services July 29, 2016 9.5% 1,362 1,180

Emami Consumer Goods August 3, 2016 9.4% 1,151 988

Castrol India Energy August 5, 2016 9.6% 425 372

Punjab National Bank Financial Services October 3, 2016 9.4% 143 121

Minda Corporation Auto Ancillaries October 10, 2016 9.7% 109 92

Pidilite Industries Chemicals November 17, 2016 9.9% 617 591

Somany Ceramics Ceramics December 20, 2016 10.1% 502 500

Cash 13.4%

Total Total 100%



December 22, 2016

Historical Performance as on 21st December’16

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

Religare Alpha -4.4% -9.8% -1.9% 0.8% 16.6%

Nifty -0.2% -8.1% -2.5% 3.5% 2.2%

Outperformance -4.3% -1.6% 0.6% -2.7% 14.3%



December 22, 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.



December 22, 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]

Siji A Philip [email protected]

Vipin Kumar [email protected]

Team Members



December 22, 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]

Nature of Interest ( if answer to F (a) above is Yes : ……………………………………………………………………………………………………………………

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[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]

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S. No. Statement Answer

Yes No

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No

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No

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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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