Religare Morning Digest - religareonline.com · Its profitability improved with higher sales of Value ... Bharat Heavy Electricals Limited ... shortlisted on the basis of techno-funda

1 Disclaimer: http://www.religareonline.com/research/Disclaimer/

Religare Morning Digest

February 26, 2018

Nifty Outlook

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

NIFTY 10750 10700 10000

Markets recovered strongly on the first day of new F&O expiry, providing much needed breather. Almost all the sectors participated in the move however banking and metal contributed maximum to the index surge. Recovery in the broader markets further added to the relief.

This bounce was largely due to the oversold positions and it may extend further in the coming week. However, we feel it’s just a relief rally and sustainability at higher level would be difficult. Nifty has strong hurdle at 10600 and cues are still mixed on local front. Amid all, stocks are offering opportunities on both sides so participants should focus more on stock selection.

Sectors to watch

Sector Name Outlook

AUTO STABLE

ENERGY STABLE

FMCG STABLE

News

Religare Super Ideas**

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

Category Amt.** MTD FYTD

FII -2335 -14356 6368

DII** 1059 12246 96120

NO OF CON-

TRACTS

TURNOVER IN CR

IDXFUTS 257061 22116

IDXOPT 3369602 304083

STKFUTS 763611 54331

Derivative Ideas **

Larsen & Toubro announced that its construction arm has won orders worth Rs 1,266cr across business segments. The company said that its buildings and factories business has bagged orders worth Rs 928cr, while its power transmission and distribution business and transportation infrastructure business secured an order from the MMRC worth Rs 338cr.

Yash Papers ended higher by nearly 5% after the company announced that it has signed a MOU of Rs 73.4cr with UP Government for capacity expansion in the coming years. The company will expand capacity of its paper unit lll from 70 MT to 100 MT and tableware unit from 11.50 MT to 23 MT.

HCL Technologies announced a fully configurable, high-throughput backhaul modem running on Xilinx All Programmable Zynq UltraScale+ MPSoC devices. The solution targets 5G access and mobile backhaul markets and will enable telecom OEMs to meet the stringent requirements of next-generation.

**Provisional data as on 22nd Feb 2018

Scrip Buy/Sell CMP Initiation

Range SL* Target

HINDZINC BUY 328 325-327 318 345

BHEL SELL FUTS

93.45 94-95 97 88

Instrument B/S Lot INITIATION

RANGE SL

TAR-GET

ITC BUY

270CE 2400 5-6 2.50 14

**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.



February 26, 2018

Investment Pick - Time Technoplast

Time Technoplast reported good Q3FY18 result with Net Revenue and Net profit growth of 12.5% and 27.9% yoy respectively. The overall volume growth for

Q3FY18 was 16% yoy, wherein India and overseas businesses reported strong performance. Its profitability improved with higher sales of Value added products (45% volume growth yoy).

With rising capacity for its VAP, the company is well placed to cater to the healthy demand outlook for its various high margin products. We expect the company

to report healthy double digit volume growth over the next 2-3 years led by robust sales from VAP. Thus, we remain positive on the business and maintain a Buy on the stock with a revised target price of Rs. 249 (earlier TP 264).

Scrip CMP Target Duration Recommendation Price

TIMETECHNO 183.35 249 9-12 Months 185

ITC added around 3.30% in open interest as long

buildup was seen in it. Current chart pattern too

indicate further surge in its price. We suggest

buying ITC options as per below levels.

Strategy: Buy ITC 270CE between 5-6, SL– 2.50,

TGT– 14.

Derivative Ideas Religare Super Ideas

Hindustan Zinc Limited (HINDZINC) Bharat Heavy Electricals Limited (BHEL)

HINDZINC has surged strongly today i.e. on Feb 23

with a strong rise in volume and trading on the

verge of breakout from its broader market range

now. We feel traders shouldn’t miss this

opportunity and accumulate fresh longs in the

given range.

BHEL has been struggling below resistance zone of

moving averages on weekly chart for last several

months. Today, it has witnessed marginal bounce,

offering shorting opportunity. Traders can initiate

fresh shorts in the mentioned range.



February 26, 2018

Religare Investment Calls

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

Indo Count Industries Ltd. 17-May-17 198 240 21.2% 101.2

CRISIL 01-Aug-17 1,858 2,419 30.2% 1,921.7

LIC Housing Finance 09-Aug-17 681 748 9.8% 517.7

The Byke Hospitality 17-Aug-17 195 242 24.1% 176.5

Tata Communications 18-Sept-17 708 822 16.1% 639.2

Century Plyboards 07-Nov-17 294 312 6.1% 315.2

GNA Axles 22-Jan-18 462 563 22.0% 422.9

Force Motors 25-Jan-18 3,250 4,197 29.1% 2,960.4

Swaraj Engines Ltd 25-Jan-18 1,989 2,426 22.0% 1,944.0

Nilkamal Ltd. 30-Jan-18 1,837 2,231 21.5% 1,695.8

APL Apollo Tubes 31-Jan-18 2,255 2,559 13.5% 1,994.6

Symphony Ltd. 31-Jan-18 1,815 2,160 19.0% 1,691.2

Manpasand Beverages 1-Feb-18 378 483 27.8% 387.9

Bharat Electronics Ltd. 7-Feb-18 149 217 45.6% 151.0

Kajaria Ceramics Ltd. 7-Feb-18 589 775 31.5% 574.5

Mold-Tek Packaging 8-Feb-18 346 379 9.5% 321.4

Srikalahasthi Pipes Ltd 8-Feb-18 354 429 21.2% 356.0

Navneet Education 9-Feb-18 139 188 35.3% 132.6

Castrol India Ltd 12-Feb-18 199 238 19.6% 193.7

Eicher Motors Ltd 12-Feb-18 27,748 34,600 24.7% 26,724.4

Avanti Feeds 12-Feb-18 2,504 2,980 19.0% 2,410.6

Talwalkars Better Value Fitness 12-Feb-18 304 350 15.1% 305.8

NRB Bearings 14-Feb-18 165 198 20.0% 161.0

S Chand & Company 14-Feb-18 472 640 35.6% 467.3

Sutlej Textiles 15-Feb-18 84 105 25.2% 80.7

Minda Corporation 15-Feb-18 203 231 13.8% 195.8

Wonderla Holidays 16-Feb-18 386 411 6.5% 377.2

Garware Wall Ropes Ltd 16-Feb-18 950 1,074 13.1% 921.2

Jamna Auto Industries 16-Feb-18 79 94 19.0% 79.4

Fiem Industries 19-Feb-18 899 1,315 46.3% 870.5

SML Isuzu 22-Feb-18 795 1,114 40.1% 798.6

Asian Granito India Ltd. 22-Feb-18 498 642 28.9% 507.2

Time Technoplast 23-Feb-18 185 249 34.6% 183.4



February 26, 2018

Corporate Action Calendar — February 2018 (Cash Dividend)

Sun Mon Tue Wed Thu Fri Sat

25 26

Infibeam Incorporation Ltd

27

OM Metals Infraprojects Ltd

Vidhi Specialty Food Ingredients Ltd

28

Hindustan Petroleum Corp

Mayur Uniquoters Ltd

01

KAMA Holdings Ltd

Shilpa Medicare Ltd

02 03

Economic Calendar — February 2018 (Stock Split)

Sun Mon Tue Wed Thu Fri Sat

25 26 27 28

Nikkei India PMI Mfg

Fiscal Deficit INR Crore

GDP Annual Estimate YoY

GDP YoY

GVA YoY

01 02 03

Corporate Action Calendar — February 2018 (Acquisition)

Date Target Company Acquirer Company

2/28/2018 Dr Lal PathLabs Bangladesh Pvt Ltd Dr Lal PathLabs Ltd

2/28/2018 M.I.T.R.A Agro Equipments Pvt Ltd Mahindra & Mahindra Ltd

2/28/2018 Tapits Technologies Pvt Ltd ICICI Bank Ltd

2/28/2018 Pudumjee Industries Ltd AMJ Land Holdings Ltd



February 26, 2018

Current Portfolio and Performance Summary as on 23rd February’18

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

Amara Raja Batteries Auto March 22, 2017 9.8% 868 814

RBL Bank Financial Services July 11, 2017 8.5% 532 488

Muthoot Finance Financial Services July 26, 2017 7.7% 482 388

Va Tech Wabag Infrastructure August 16, 2017 8.2% 636 555

Can Fin Homes Financial Services September 19, 2017 10.3% 572 524

CARE Financial Services September 20, 2017 9.5% 1,493 1,373

Yes Bank Financial Services January 5, 2018 10.3% 322 323

Godfrey Phillips India Consumer Goods January 5, 2018 8.7% 1,022 876

CCL Products Beverages January 9, 2018 9.7% 306 287

Cash 17.2%

Total 100%



February 26, 2018

Historical Performance as on 23rd February’18

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

Religare Alpha 4.4% 8.4% 12.9% 42.4%

Nifty 1.4% 6.4% 17.4% 33.1%

Outperformance 3.1% 2.0% -4.5% 9.3%



February 26, 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.



February 26, 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



February 26, 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.

http://old.religareonline.com/research/Disclaimer/Disclaimer_RSL.html

Documents

Religare Morning Digest - religareonline.com · Its profitability improved with higher sales of Value ... Bharat Heavy Electricals Limited ... shortlisted on the basis of techno-funda