religare morning digest buildcon announced that it had bagged a road project worth rs ... tata...
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Religare Morning Digest
March 19, 2018
Nifty Outlook
VWAP (Expiry till date) Max OI (Call) Max OI (Put)
NIFTY 10380 10500 10000
Nifty fell sharply and lost over one and a half percent, pressurized by feeble cues. Weak global markets led a negative start which further deteriorated on the report of widened trade deficit and political fallout between the BJP and TDP as the latter pulled out of NDA government.
We believe further decline is inevitable and Nifty is likely to test 10000 shortly. Traders should continue with “sell on rise” approach in the index. Stocks, on the other hand, are seeing mixed movement so prefer stock specific trading approach rather focusing on any particular sector.
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 -705 6399 8503
DII** 256 1100 10120
NO OF CON-
TRACTS
TURNOVER IN CR
IDXFUTS 347482 29288
IDXOPT 5412044 466503
STKFUTS 784721 54567
Derivative Ideas **
Gravita India, a leading recycling company having its manufacturing presence around the globe, announced that it received orders worth Rs 300 cr for supplying 18000 MT of pure lead and lead bullion from Kyen Resources Pte, Singapore. Gravita India said this order will help the company strengthen its top line and bottom line in coming FY18-19.
Dilip Buildcon announced that it had bagged a road project worth Rs 1,004 cr in Madhya Pradesh from NHAI. It has been declared L-1 bidder by the National Highways Authority of India for a new hybrid annuity project in Madhya Pradesh.
Dr Reddy’s announced that it has received Form 483 with 4 observations for its API Hyderabad Plant 1 at Jinnaram Mandal, Medak Telengana from USFDA. The audit of company’s Telengana units has been completed today by the USFDA with four observations which will be addressed comprehensively within stipulated time.
**Provisional data as on 15th March 2018
Scrip Buy/Sell CMP Initiation
Range SL* Target
SRTRANSFIN BUY 1445.80 1420-1430 1370 1530
GRASIM SELL FUTS
1104.50 1110-1120 1150 1030
Instrument B/S Lot INITIATION
RANGE SL
TAR-GET
WIPRO BUY
300CE 2400 2-2.50 0.80 6
**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.
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Religare Morning Digest
March 19, 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 326.60 368 9-12 Months 326
WIPRO added around 7% in open interest as long
buildup was seen in it. Current chart pattern too
indicate further surge in its price. We suggest
buying WIPRO options as per below levels.
Strategy: Buy WIPRO 300CE between 2-2.50,
SL– 0.80, TGT– 6.
Derivative Ideas Religare Super Ideas
Shriram Transport Finance Company Limited
(SRTRANSFIN)
Grasim Industries Limited (GRASIM)
After consolidating in a narrow range for last
three weeks on daily chart, SRTRANFIN has posted
a fresh breakout of late and now looks all set for a
new record high. Traders are advised to initiate
fresh long positions in given range.
We are reiterating our short recommendation in
GRASIM with the updated levels as it call was not
initiated earlier in the given range.
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Religare Morning Digest
March 19, 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% 92.7
CRISIL 01-Aug-17 1,858 2,419 30.2% 1,950.3
LIC Housing Finance 09-Aug-17 681 748 9.8% 513.5
The Byke Hospitality 17-Aug-17 195 242 24.1% 162.8
Tata Communications 18-Sept-17 708 822 16.1% 624.2
GNA Axles 22-Jan-18 462 563 22.0% 430.8
Force Motors 25-Jan-18 3,250 4,197 29.1% 2,772.3
Swaraj Engines Ltd 25-Jan-18 1,989 2,426 22.0% 1,998.0
Nilkamal Ltd. 30-Jan-18 1,837 2,231 21.5% 1,637.9
APL Apollo Tubes 31-Jan-18 2,255 2,559 13.5% 2,003.1
Symphony Ltd. 31-Jan-18 1,815 2,160 19.0% 1,776.8
Manpasand Beverages 1-Feb-18 378 483 27.8% 380.7
Bharat Electronics Ltd. 7-Feb-18 149 217 45.6% 149.2
Kajaria Ceramics Ltd. 7-Feb-18 589 775 31.5% 564.2
Mold-Tek Packaging 8-Feb-18 346 379 9.5% 323.6
Srikalahasthi Pipes Ltd 8-Feb-18 354 429 21.2% 336.1
Navneet Education 9-Feb-18 139 188 35.3% 149.7
Castrol India Ltd 12-Feb-18 199 238 19.6% 205.2
Eicher Motors Ltd 12-Feb-18 27,748 34,600 24.7% 28,079.2
Avanti Feeds 12-Feb-18 2,504 2,980 19.0% 2,346.0
Talwalkars Better Value Fitness 12-Feb-18 304 350 15.1% 260.5
NRB Bearings 14-Feb-18 165 198 20.0% 163.7
S Chand & Company 14-Feb-18 472 640 35.6% 422.4
Sutlej Textiles 15-Feb-18 84 105 25.2% 81.3
Minda Corporation 15-Feb-18 203 231 13.8% 191.5
Wonderla Holidays 16-Feb-18 386 411 6.5% 342.7
Garware Wall Ropes Ltd 16-Feb-18 950 1,074 13.1% 927.0
Jamna Auto Industries 16-Feb-18 79 94 19.0% 79.4
Fiem Industries 19-Feb-18 899 1,315 46.3% 838.0
SML Isuzu 22-Feb-18 795 1,114 40.1% 764.2
Asian Granito India Ltd. 22-Feb-18 498 642 28.9% 465.1
Time Technoplast 23-Feb-18 185 249 34.6% 168.6
VIP Industries Ltd. 26-Feb-18 344 383 11.3% 302.4
Century Plyboards 27-Feb-18 326 368 12.9% 326.6
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Religare Morning Digest
March 19, 2018
Corporate Action Calendar — March 2018 (Cash Dividend)
Sun Mon Tue Wed Thu Fri Sat
18 19
Engineers India Ltd
20
Colgate-Palmolive India
Vedanta Ltd
Kewal Kiran Clothing Ltd
21
Indian Energy Exchange Ltd
22
Sundaram-Clayton Ltd
Sun TV Network Ltd
Coromandel International Ltd
Housing Development Finance Corp
23
United Nilgiri Tea Estates Co Ltd/The
Hindustan Zinc Ltd
24
Corporate Action Calendar — March 2018 (Acquisition)
Date Target Company Acquirer Company
3/20/2018 Indrayani Biotech Ltd Private Investor
3/20/2018 Akashdeep Metal Industries Ltd Private Investor
3/22/2018 Anisha Implex Ltd Multiple acquirers
3/22/2018 Claris Lifesciences Ltd Multiple acquirers
Corporate Action Calendar — March 2018 (Stock Dividend)
Sun Mon Tue Wed Thu Fri Sat
18 19 20 21 22
LA Opala RG Ltd
23 24
Corporate Action Calendar — March 2018 (Stock Split)
Sun Mon Tue Wed Thu Fri Sat
18 19 20 21
India Nippon Electricals Ltd
22
Sybly Industries Ltd
23 24
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Religare Morning Digest
March 19, 2018
Current Portfolio and Performance Summary as on 16th March’18
Stock Sector Entry Date Weight Reco price (`) CMP (`)
Amara Raja Batteries Auto March 22, 2017 9.6% 868 783
RBL Bank Financial Services July 11, 2017 8.3% 532 468
Muthoot Finance Financial Services July 26, 2017 8.0% 482 397
Va Tech Wabag Infrastructure August 16, 2017 7.6% 636 503
Can Fin Homes Financial Services September 19, 2017 10.8% 572 540
CARE Financial Services September 20, 2017 9.2% 1,493 1,301
Yes Bank Financial Services January 5, 2018 10.1% 322 313
Godfrey Phillips India Consumer Goods January 5, 2018 8.9% 1,022 877
CCL Products Beverages January 9, 2018 10.1% 306 294
Cash 17.5%
Total 100%
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Religare Morning Digest
March 19, 2018
Historical Performance as on 16th March’18
Performance Matrix 3-Month 6-Month 1-Year Since Inception
Religare Alpha 1.1% 2.4% 11.4% 40.2%
Nifty -0.6% 1.1% 11.4% 29.3%
Outperformance 1.6% 1.4% 0.0% 10.8%
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Religare Morning Digest
March 19, 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
March 19, 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
March 19, 2018
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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.