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Religare Morning Digest

April 9, 2018

Nifty Outlook

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

NIFTY 10120 10500 10000

Nifty settled almost unchanged in a range bound session, taking a breather after the recent volatile swings. It opened marginally lower taking cues from the global front after the US President escalated tension with China, by proposing tariffs on $100 billion worth of Chinese imports. However, MPC’s upbeat growth forecast for the current fiscal capped losses and helped index to end flat.

Markets prefer clarity and the recent news flow especially from the global front have failed to provide that comfort. We suggest avoiding naked leveraged positions and keeping close eye on global developments for cues.

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** -108 -840 -840

DII** 615 1354 1354

NO OF CON-

TRACTS

TURNOVER IN CR

IDXFUTS 194209 16985

IDXOPT 3989631 362589

STKFUTS 722919 51256

Derivative Ideas **

PSP Projects received work orders worth Rs 87.33 Cr from various clients for industrial, institutional and government projects.

KH Foges Pte, subsidiary of Kridhan Infra, won order worth Rs 1,340 million in Singapore. The contract period for the project is around 4 months.

Lupin has received the establishment investigation report (EIR) from USFDA for the successful inspection of its Pithampur, Unit 1. The inspection was conducted in July 2017.

**Provisional data as on 5th April 2018

Scrip Buy/Sell CMP Initiation

Range SL* Target

COALINDIA SELL

FUTS 275.10 277-280 282 268

HINDZINC BUY 314.30 309-312 298 335

Instrument B/S Lot INITIATION

RANGE SL

TAR-GET

MCDOWELL-N BUY

3300C

E

250 107-108 69 186

**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.



April 9, 2018

Investment Pick - Century Plyboards

Century Plyboards (I) Ltd (CPIL) reported healthy set of numbers for Q3FY18 with net revenue and PAT growth (standalone) of 19.9% & 25.1% YoY respectively. Led by high margin MDF segment, the overall EBITDA margins improved by 137bps YoY to 17.2%, which was encouraging.

We remain positive on CPIL’s medium to long term growth prospects, given its strong presence across various wood panel segments (leadership in organized plywood sector), steady capacity additions, increasing focus on the high margin MDF segment and Government’s thrust on affordable housing. We recommend a BUY on the stock with target price of Rs 368.

Scrip CMP Target Duration Recommendation Price

CENTURYPLY 354.45 368 9-12 Months 326

MCDOWELL-N added around 2% 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 MCDOWELL-N options

as per below levels.

Strategy: BUY MCDOWELL-N 3300CE between

107-108, SL– 69, TGT– 186.

Derivative Ideas Religare Super Ideas Religare Super Ideas

Coal India Limited (COALINDIA) Hindustan Zinc Limited (HINDZINC)

COALINDIA, after the recent fall, is witnessing consolidation but failed to surpass the crucial

hurdle. The chart pattern indicates possibility of fresh decline ahead. Traders may initiate fresh

short positions in the given range.

HINDZINC is among the strongest counter in metal space. It has been hovering in a range while mostly

are struggling. Indications are in the favor of fresh breakout in near future. We advise using any dip in

the given range for creating fresh longs.



April 9, 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% 98.3

CRISIL 01-Aug-17 1,858 2,419 30.2% 1,908.4

LIC Housing Finance 09-Aug-17 681 748 9.8% 563.3

The Byke Hospitality 17-Aug-17 195 242 24.1% 191.7

Tata Communications 18-Sept-17 708 822 16.1% 654.9

GNA Axles 22-Jan-18 462 563 22.0% 490.7

Force Motors 25-Jan-18 3,250 4,197 29.1% 2,893.6

Swaraj Engines Ltd 25-Jan-18 1,989 2,426 22.0% 2,045.1

Nilkamal Ltd. 30-Jan-18 1,837 2,231 21.5% 1,613.5

APL Apollo Tubes 31-Jan-18 2,255 2,559 13.5% 2,105.3

Symphony Ltd. 31-Jan-18 1,815 2,160 19.0% 1,798.6

Manpasand Beverages 1-Feb-18 378 483 27.8% 372.7

Bharat Electronics Ltd. 7-Feb-18 149 217 45.6% 144.8

Kajaria Ceramics Ltd. 7-Feb-18 589 775 31.5% 570.3

Mold-Tek Packaging 8-Feb-18 346 379 9.5% 331.8

Srikalahasthi Pipes Ltd 8-Feb-18 354 429 21.2% 347.6

Navneet Education 9-Feb-18 139 188 35.3% 147.0

Castrol India Ltd 12-Feb-18 199 238 19.6% 206.7

Eicher Motors Ltd 12-Feb-18 27,748 34,600 24.7% 29,799.2

Avanti Feeds 12-Feb-18 2,504 2,980 19.0% 2,308.0

Talwalkars Better Value Fitness 12-Feb-18 304 350 15.1% 140.6

NRB Bearings 14-Feb-18 165 198 20.0% 164.3

S Chand & Company 14-Feb-18 472 640 35.6% 402.4

Sutlej Textiles 15-Feb-18 84 105 25.2% 80.0

Minda Corporation 15-Feb-18 203 231 13.8% 185.5

Wonderla Holidays 16-Feb-18 386 411 6.5% 368.2

Garware Wall Ropes Ltd 16-Feb-18 950 1,074 13.1% 937.4

Jamna Auto Industries 16-Feb-18 79 94 19.0% 84.4

Fiem Industries 19-Feb-18 899 1,315 46.3% 925.2

SML Isuzu 22-Feb-18 795 1,114 40.1% 779.7

Asian Granito India Ltd. 22-Feb-18 498 642 28.9% 499.8

Time Technoplast 23-Feb-18 185 249 34.6% 181.3

VIP Industries Ltd. 26-Feb-18 344 383 11.3% 360.8

Century Plyboards 27-Feb-18 326 368 12.9% 354.5



April 9, 2018

Corporate Action Calendar — April 2018 (Cash Dividend)

Sun Mon Tue Wed Thu Fri Sat

01 02 03

SBI Life Insurance Co Ltd

04

AIA Engineering Ltd

05

Ambuja Cements Ltd

Maan Aluminium Ltd

GOCL Corp Ltd

06

Linde India Ltd

07

Corporate Action Calendar — April 2018 (Stock Split)


01 02 03 04 05

Marathon Nextgen Realty Ltd

Atharv Enterprises Ltd

06 07

Economic Calendar — April 2018


01 02

Nikkei India PMI Mfg

Eight Infrastructure

Industries

03 04

Nikkei India PMI Services

Nikkei India PMI Composite

05

RBI Repurchase Rate

RBI Reverse Repo Rate

RBI Cash Reserve Ratio

06 07

Corporate Action Calendar — April 2018 (Acquisition)

Date Target Company Acquirer Company

4/5/2018 Videocon d2h Ltd Dish TV India Ltd



April 9, 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.



April 9, 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



April 9, 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]

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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.

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Religare Morning Digestreligareonline.com/MediaGalary/religare_research_docs... · Religare Morning Digest April 9, 2018 Religare Investment Calls Name of the Company Reco Date Reco