Religare Morning Digestbetaorigin.religareonline.com/mediagalary/religare_research_docs... · Religare Morning Digest June 21, 2016 ... Suzlon has entered into a pact with CLP India

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Religare Morning Digest

June 21, 2016

Nifty Outlook

Nifty, after the initial down tick, made a strong comeback and gained nearly a percent on

Monday. Interestingly, markets shrugged-off the concerns over exit of the RBI Governor,

Raghuram Rajan, post September, 2016 after completion of his term and recovered strongly

from the day’s low. Several factors including the latest and encouraging update on progress

of Monsoon, firm global cues helped index to trim losses and trade on neutral line. But,

news of change in FDI norms in civil aviation, defence and pharma space triggered buying

across the board and pushed the markets higher. Besides, strong opening of the European

markets further strengthened the recovery.

It’s indeed a positive sign that markets made a firm start of the week ahead of the Brexit

referendum, scheduled on Thursday i.e. 23 June. But, we suggest maintaining positive yet

cautious stance till the event gets over. Needless to say, the biggest trigger for our markets

is monsoon and its progress will dictate our market trend in days to come. So, traders

should focus more on agri. and consumption based stocks alongside with other cyclical

counters for short term trades.

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

NIFTY 8190 8300 8000

Sectors to watch

Sector Name Outlook

CEMENT STABLE

FMCG STABLE

PHARMA STABLE

News Religare Super Ideas**

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

Category Amt. MTD YTD

FII 32 3725 13806

DII -26 -2732 2172

NO OF CON-

TRACTS

TURNOVER IN CR

IDXFUTS 342355 20050

IDXOPT 3589260 214467

STKFUTS 565320 29523

The government has allowed 100% FDI in aviation for scheduled carriers. Also, 100% FDI has

been approved in greenfield pharma projects and 74% in brownfield projects. Changes in FDI

policy were welcomed by the Aviation and Pharma industry and stocks surged 5-10%.

Eros International announced a television syndication deal for their new and catalogue films

with Zee network. The films comprise a number of catalogue films from Eros International’s

vast movie library and also pre-sales for a few forthcoming films. The deal will be a win-win

for both the companies as Eros International association with Zee, gives it bigger platform to

reach viewers. On the other hand, Zee will get access to Eros’s rich movie library.

Suzlon has entered into a pact with CLP India for a 100 mw solar project at Veltoor in

Telangana. The project will start in May 17 and will be a mix of 80:20 debt equity. CLP India, a

subsidiary of Hong Kong based power company CLP, has 49% stake in SE Solar.

Derivative Ideas **

Instrument B/S Lot INITIATION

RANGE SL TARGET

BANKNIFTY

18000 23 JUNE

BUY

CE 30 30-34 15 80

*FII & DII data as on 17th June 2016

Scrip Buy/Sell CMP Initiation

Range SL Target

GODREJIND BUY 369.30 360-362 350 385

MOTHETSUMI BUY 295.35 292-294 282 320

**Please note that the given technical and derivative recommendations are

"valid for taking position" only on recommended date and in the given range.



June 21, 2016

Religare Super Ideas

Investment Pick - Atul Auto Ltd

ATULAUTO

Atul Auto is one of the fastest growing three wheeler companies in India. It caters to diverse group of customers in Cargo and Passenger segment with 0.35

tonnes and 0.5 tonnes capacity platform. The company has strong distribution network of 200 primary dealers and 120 secondary dealers across India.

Net sales and Net profit have grown @ CAGR of 32.7% and 55% respectively from FY10 to FY15. The company has stable dividend payout history, strong cash

flows and healthy return ratios. The management has ambitious plan to sell 1,00,000 vehicles annually in next 3-5 years.

Scrip CMP Target Duration Recommendation Price

ATULAUTO 490 580 9-12 Months 506

BANKNIFTY has witnessed huge long buildup.

Some put writing also seen at June 17500 strike. We

expect the index to rally till 18080 in the short term.

Strategy: BUY BANKNIFTY 23 JUNE, 18000 CE @ 30

-34, STOPLOSS 15, TARGET 80.

Derivative Ideas

Godrej Industries Limited (GODREJIND) Motherson Sumi Systems Ltd

Steep up move was witnessed on Monday, i.e. 20th

June where GODREJIND stock gained over 5%. The

up move was steep, lasted till the end and over

shadowed last weeks move. All this indicates

bullish bias to continue in near-term.

MOTHERSUMI is in long-term up trend, its current

chart pattern clearly indicates accumulation.

Broadly, this indicates that it is all set for breakout.

Hence, on can add fresh in mentioned range.



June 21, 2016

Corporate Action Calendar— June 2016 (Cash Dividend)

Sun Mon Tue Wed Thu Fri Sat

19 20

Punjab & Sind Bank

Damodar Industries Ltd

21

Everest Industries Ltd

Tata Metaliks Ltd

22

Hindustan Unilever Ltd

Corp Bank

23

IndusInd Bank Ltd

Welspun India Ltd

Voith Paper Fabrics India Ltd

Indian Bank

Tamboli Capital Ltd

IndusInd Bank Ltd

Maan Aluminium Ltd

Welspun Corp Ltd

24

Solitaire Machine Tools

25



June 21, 2016

Market Snapshot

Sectoral Indices Performance

Index Closing % Change % MTD % YTD

NIFTY Auto 8,799 1.43% 0.9% 6.6%

NIFTY Bank 17,719 0.13% 0.6% 4.7%

NIFTY Energy 8,633 0.95% 3.1% 0.6%

Nifty Financial Services 7,189 0.08% -0.1% 1.8%

NIFTY FMCG 21,011 -0.16% 2.4% 4.1%

NIFTY IT 11,507 1.91% 1.0% 2.6%

NIFTY Media 2,581 0.26% 1.9% -2.0%

NIFTY Metal 2,166 1.63% 6.6% 18.6%

NIFTY Pharma 10,686 0.30% -2.8% -10.7%

NIFTY PSU Bank 2,666 1.22% 6.9% -6.9%

NIFTY Realty 194 1.07% 5.9% 12.4%

Top Gainers - Nifty

Stock CMP (INR) % Chg % MTD % YTD

TATAMOTORS 482.05 3.80% 4.9% 23.2%

TATASTEEL 336.25 3.32% 0.6% 29.4%

AMBUJACEM 242.00 2.59% 6.0% 19.2%

TATAMTRDVR 320.15 2.56% 1.8% 10.6%

INFY 1,208.75 2.48% -3.2% 9.3%

Top Losers - Nifty

Stock CMP (INR) % Chg % MTD % YTD

AXISBANK 522.45 -0.84% 1.4% 16.3%

ASIANPAINT 991.50 -0.81% 0.7% 12.2%

EICHERMOT 18,660.60 -0.63% 0.9% 10.7%

ITC 358.05 -0.50% 2.0% 9.2%

SUNPHARMA 739.85 -0.45% -3.0% -9.8%

Bulk Deals - NSE

Security Name Client Name Buy/Sell Quantity Price Value (in Cr.)

Housing Development and SHAASTRA SECURITIES TRADING PRIVATE SELL 2769677 100.98 27.97

Housing Development and SHAASTRA SECURITIES TRADING PRIVATE BUY 2769677 100.89 27.94

Unitech Ltd DILIPKUMAR VISHINDAS LAKHI BUY 33285927 5.34 17.77

Gayatri Projects Ltd SATPAL KHATTAR BUY 181039 627.5 11.36

Reliance Indl Infra Ltd N.K. SECURITIES SELL 197744 456.83 9.03

Reliance Indl Infra Ltd N.K. SECURITIES BUY 197744 456.65 9.03

Unitech Ltd ADROIT SHARE & STOCK BROKER PVT. SELL 13988590 5.52 7.72

Unitech Ltd CRESCO FUTURES LTD SELL 14421275 5.33 7.69

Unitech Ltd ADROIT SHARE & STOCK BROKER PVT. BUY 13757590 5.52 7.59

Unitech Ltd CRESCO FUTURES LTD BUY 14072948 5.37 7.56

Delivery Spurt stocks

Stock Name Day's del. Vol. Del. Vol. Price

Nava Bharat 453,047 2489% 4.16%

Bajaj Holdings 485,160 1993% 1.52%

Magma Fincorp 1,581,047 1743% 6.23%

MBL Infrast 251,099 918% 1.38%

Shrenuj & Co. 72,639 682% 4.49%

Gammon Infra. 2,385,346 651% 5.83%

Omaxe 720,977 552% 1.00%

Mandhana Indus 126,586 535% -20.00%

S B T 140,249 513% -6.53%

Mindtree 620,766 496% 1.56%

*Bulk deals data as on June 17, 2016



June 21, 2016

Current Portfolio and Performance Summary as on 20th June’16

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

Dewan Housing Finance

Corporation Financial Services Feb 10, 2016 14.6% 193* 205

Heritage Foods Consumer Goods Apr 25, 2016 9.7% 515 528

GIC Housing Finance Financial Services May 02, 2016 8.0% 268 284

Talwalkars Better value

Fitness Miscellaneous May 12, 2016 10.9% 199 226

Bajaj Corp Consumer Goods May 13, 2016 9.8% 393 394

Reliance Industries Energy May 27, 2016 9.9% 970 990

City Union Bank Financial Services May 31, 2016 10.1% 107 110

Cash 27.0%

Total Total 100%

*Weighted average price

*7.5% DHFL was bought at 237



June 21, 2016

Historical Performance as on 20th June’16

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

Religare Alpha 4.47% 13.08% 3.45% 5.00% 19.64%

Nifty 6.31% 8.34% 5.81% 0.16% 4.49%

Outperformance -1.84% 4.74% -2.36% 4.83% 15.15%



June 21, 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.



June 21, 2016

Hitesh Agrawal [email protected]

Ajay Pasari, CFA [email protected]

Ajit Mishra [email protected]

Gaurav Sharma [email protected]

Swati Saxena [email protected]

Manoj M Vayalar [email protected]

Vipin Kumar [email protected]

Team Members



June 21, 2016

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Religare Morning Digestbetaorigin.religareonline.com/mediagalary/religare_research_docs... · Religare Morning Digest June 21, 2016 ... Suzlon has entered into a pact with CLP India