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Religare Morning Digest
April 11, 2018
Nifty Outlook
VWAP (Expiry till date) Max OI (Call) Max OI (Put)
NIFTY 10120 10500 10000
The Indian markets started the session on a positive note tracking firm Asian cues after Chinese president discussed measures to open Chinese economy by significantly lowering import tariffs for autos and decreasing duty on other products. The headline index remained in a narrow range throughout the session and ended the day with minor gains of 0.2%. The performance of broader markets was in line with the benchmark. Sector Indices exhibited mixed trend with realty, metals, capital goods and banks being the top gainers and autos, healthcare and FMCG being the top losers. Globally, Asian markets ended higher with China being the top performer and European indices traded higher.
Chinese President Xi Jinping speech has calmed investor jitters over an escalating US-China trade row. Going forward, market participants would be actively tracking global cues and crude oil prices. On the domestic front, IIP/CPI numbers scheduled later this week along with beginning of Q4 earnings season would be keenly watched by investors. We expect volatility to remain high in the near term and hence would advise traders to remain cautious.
Sectors to watch
Sector Name Outlook
AUTO STABLE
IT STABLE
FMCG STABLE
News Religare Super Ideas**
FII & DII Cash Segment (Rs. in Cr.)
Category Amt. MTD FYTD
FII** -1301 -2666 -2666
DII** 359 3018 3018
Derivative Ideas **
Welspun Corp announced that it was awarded a contract for supply of 4.17 lakh million tonne of large diameter pipes for a water project in the Middle East and North Africa region (MENA) region. With this addition, the company's current order book stands at an all-time high of 1.49 million MTs valued at Rs 9,544 cr.
Gravita India said that the company has started commercial production of PPCP Granules by installing new imported washing line and extrusion line which is having annual capacity of 1200 MTPA. The production from plant will cater the needs of injection moulding and non-woven fabric industry globally.
Wipro announced that one of its client filed a petition to initiate its Corporate Insolvency Resolution Process (CIRP) with the National Company Law Tribunal (NCLT). The company is likely to see an impact on profitability at the net income level in the range of 65-75bps of the consolidated revenues for the quarter ended March 2018.
**Provisional data as on 9th April 2018
Scrip Buy/Sell CMP Initiation
Range SL* Target
IGL BUY 296.05 290-292 282 305
BHEL SELL
FUTS 89 90-91 93 84
Instrument B/S Lot INITIATION
RANGE SL
TAR-GET
TATAPOWER BUY
87.50
CE
9000 1.70-1.80
0.75 4
**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.
Trade Stats**
NO OF CON-
TRACTS
TURNOVER IN CR
IDXFUTS 191459 16843
IDXOPT 4489135 417298
STKFUTS 703706 50226
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Religare Morning Digest
April 11, 2018
Investment Pick - Supreme Industries Ltd.
Supreme Industries Ltd (SIL) is India's leading plastic processor, offering a wide range of plastic products. With 25 manufacturing facilities and a vast network of 2,950 channel partners, SIL operates in product categories like Plastic Piping System, Cross Laminated Films, Protective Packaging Products, Moulded Plastic Furniture, Material Handling Products and Composite LPG Cylinders.
Led by demand revival, steady capacity additions and enhanced product offerings, SIL's consolidated revenue is estimated to grow by 14.2% CAGR over FY17-20E. EBITDA margins are likely to improve in FY19E & FY20E led by operating leverage and higher share of value added products. We recommend a BUY on the stock with target price of Rs 1,473.
Scrip CMP Target Duration Recommendation Price
SUPREME INDUSTRIES LTD 1,206.35 1,473 9-12 Months 1,195
TATAPOWER added around 3% in open interest as long buildup was seen in it in previous session.
Current chart pattern too indicate further surge in its price. We suggest buying TATAPOWER options
as per below levels.
Strategy: BUY TATAPOWER 87.50CE between
1.70-1.80, SL– 0.75, TGT– 4.
Derivative Ideas Religare Super Ideas Religare Super Ideas Religare Super Ideas
Indraprastha Gas Limited (IGL) Bharat Heavy Electricals Limited (BHEL)
After retesting the major support zone of 200 EMA, IGL has been witnessing bounce for last one week.
The chart pattern indicates possibility of strong up move in the coming sessions. Traders may initiate
fresh long positions in the given range.
BHEL, after the recent slide, is currently witnessing bounce and has reached closer to its immediate
resistance of 90 level. We advise using this bounce to create fresh short positions in the given range.
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Religare Morning Digest
April 11, 2018
Religare Investment Calls
Name of the Company Reco Date Reco Price Target Price Upside % Previous day Closing Price
CRISIL 01-Aug-17 1,858 2,419 30.2% 1,911.9
LIC Housing Finance 09-Aug-17 681 748 9.8% 560.7
The Byke Hospitality 17-Aug-17 195 242 24.1% 189.9
Tata Communications 18-Sept-17 708 822 16.1% 655.5
GNA Axles 22-Jan-18 462 563 22.0% 479.0
Force Motors 25-Jan-18 3,250 4,197 29.1% 2,864.8
Swaraj Engines Ltd 25-Jan-18 1,989 2,426 22.0% 2,025.2
Nilkamal Ltd. 30-Jan-18 1,837 2,231 21.5% 1,721.4
APL Apollo Tubes 31-Jan-18 2,255 2,559 13.5% 2,163.6
Symphony Ltd. 31-Jan-18 1,815 2,160 19.0% 1,788.4
Manpasand Beverages 1-Feb-18 378 483 27.8% 384.7
Bharat Electronics Ltd. 7-Feb-18 149 217 45.6% 145.5
Kajaria Ceramics Ltd. 7-Feb-18 589 775 31.5% 557.1
Mold-Tek Packaging 8-Feb-18 346 379 9.5% 324.8
Srikalahasthi Pipes Ltd 8-Feb-18 354 429 21.2% 349.5
Navneet Education 9-Feb-18 139 188 35.3% 149.3
Castrol India Ltd 12-Feb-18 199 238 19.6% 207.8
Eicher Motors Ltd 12-Feb-18 27,748 34,600 24.7% 29,972.1
Avanti Feeds 12-Feb-18 2,504 2,980 19.0% 2,272.5
Talwalkars Better Value Fitness 12-Feb-18 304 350 15.1% 126.9
NRB Bearings 14-Feb-18 165 198 20.0% 160.7
S Chand & Company 14-Feb-18 472 640 35.6% 402.7
Sutlej Textiles 15-Feb-18 84 105 25.2% 79.0
Minda Corporation 15-Feb-18 203 231 13.8% 185.2
Wonderla Holidays 16-Feb-18 386 411 6.5% 362.4
Garware Wall Ropes Ltd 16-Feb-18 950 1,074 13.1% 930.7
Jamna Auto Industries 16-Feb-18 79 94 19.0% 85.0
Fiem Industries 19-Feb-18 899 1,315 46.3% 923.9
SML Isuzu 22-Feb-18 795 1,114 40.1% 773.8
Asian Granito India Ltd. 22-Feb-18 498 642 28.9% 500.2
Time Technoplast 23-Feb-18 185 249 34.6% 175.8
VIP Industries Ltd. 26-Feb-18 344 383 11.3% 378.8
Century Plyboards 27-Feb-18 326 368 12.9% 349.7
Supreme Industries Ltd. 03-Apr-18 1,195 1,473 23.3% 1,206.4
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Religare Morning Digest
April 11, 2018
Corporate Action Calendar — April 2018 (Cash Dividend)
Sun Mon Tue Wed Thu Fri Sat
08
09
Schaeffler India Ltd
10
11
12
Foseco India Ltd
KSB Pumps Ltd
13
14
Corporate Action Calendar — April 2018 (Stock Split) Sun Mon Tue Wed Thu Fri Sat
08 09
10
Ruchika Industries India Ltd
11 12
Atharv Enterprises Ltd
13
Amrutanjan Health Care Ltd
14
Economic Calendar — April 2018
Sun Mon Tue Wed Thu Fri Sat
08 09 10 11 12 13 14
Corporate Action Calendar — April 2018 (Acquisition)
Date Target Company Acquirer Company
4/8/2018
4/9/2018
4/10/2018
4/11/2018
4/13/2018
Creative Polypack Ltd
Marathwada Refractories Ltd
Centerac Technologies Ltd
Systematix Ventures Pvt Ltd
Camden Town Technologies Pvt Ltd
Mountain Trail Foods Pvt Ltd
Chakr Innovation Pvt Ltd
Individual Learning Pvt Ltd
Pipa Bella Accessories Pvt Ltd
Kaleidofin Pvt Ltd
LoadShare Networks Pvt Ltd
QwikPik Technology Co Ltd
Jyotirgamaya Enterprises Ltd
TCM Ltd
Bagadia Colourchem Ltd
Wendel SA
Multiple acquirers
Private Investor
Systematix Corporate Services
Multiple acquirers
Multiple acquirers
Multiple acquirers
Reliance Industries Ltd
Multiple acquirers
Multiple acquirers
Multiple acquirers
Multiple acquirers
Private Investor
Private Investor
Private Investor
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Religare Morning Digest
April 11, 2018
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
April 11, 2018
Hitesh Agrawal [email protected]
Ajay Pasari, CFA [email protected]
Ajit Mishra [email protected]
Manoj M Vayalar [email protected]
Mehernosh Khurshed Panthaki [email protected]
Nirvi Ashar [email protected]
Rohit Khatri [email protected]
Suhanee Shome [email protected]
Team Members
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Religare Morning Digest
April 11, 2018
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.
