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Religare Morning Digest

May 4, 2016

Nifty Outlook

Nifty slipped further lower on Tuesday and lost over half a percent in an extremely volatile

session. Initially, it ignored weak global cues and made a strong start, but it couldn’t hold

that bias for long and resumed its declining spree as the session progressed. It clearly shows

that global markets are currently dictating our market trend, in absence of any decisive cue

from the local front.

Despite prevailing uncertainty, we suggest traders to uphold buy on dips in Nifty till it’s

trading above 7650. However, we still feel handling volatility will be the bigger challenge,

considering the earning season and correction in world markets. So, build your trading

strategies accordingly and avoid overleveraging.

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

NIFTY 7900 8200 7700

Sectors to watch

Sector Name Outlook

CEMENT STABLE

FMCG STABLE

PHARMA STABLE

News Religare Super Ideas**

FII & DII activity (Rs. in Cr.) Trade Stats

Category Amt MTD YTD

FII 435 435 3490

DII -110 -110 -2128

NO OF CON-

TRACTS

TURNOVER IN CR

IDXFUTS 387255 21606

IDXOPT 3296865 193067

STKFUTS 614793 31617

United Spirits rose 3.5% to Rs 2,442 after reports Diageo Plc is considering raising stake in

the liquor maker to 72% from 54.78%.

Rolta India jumped 11% to Rs 85.30 after the company won multi-year multi-million pound

geographical information system contract from UK Power Networks.

Godrej Consumer Products Ltd (GCPL) reported a 16.75% rise in consolidated net profit at

Rs. 310.07 crore for the fourth quarter ended March 31, 2015-16.

BHEL announced the commissioning of a 600 MW coal-based thermal power plant in Madhya

Pradesh.

Derivative Ideas **

Instrument B/S Lot INITIATION

RANGE SL TARGET

BANKINDIA

MAY 90 PE BUY 3000 4-4.25 2.5 7

*FII & DII data as on 2nd May 2016

Scrip Buy/Sell CMP Initiation

Range SL Target

AMARAJABAT BUY 956.95 940-945 910 1020

BHARATFORG SELL MAY

FUT 797.00 802-810 840 740

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

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



May 4, 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 482.40 580 9-12 Months 506

BANKINDIA added 6.4% open interest as short

buildup. It is also trading below its short term as

well as long term moving average on daily charts.

Strategy: BUY BANKINDIA 90 PE @ 4-4.25, SL 2.5,

TARGET 7.

Derivative Ideas

Amara Raja Batteries Ltd. (AMARAJABAT) Bharat Forge Limited (BHARATFORG)

AMARAJABAT has been comfortably consolidating

post trend line breakout above 910-915 levels. In

recent past, stock price was almost stagnant but

volumes are slowly inching higher. This indicates

accumulation around the current levels and

generally results in a sustainable up move.

BHARATFORG is trading weak below its important

long and medium-term averages (200/100 EMA) on

daily chart. All recent attempts to cross and sustain

above the same went in vain. Considering its

current chart pattern and past performance, we

believe bearish bias will persist.



May 4, 2016

Corporate Action Calendar— May 2016 (Cash Dividend)

Sun Mon Tue Wed Thu Fri Sat

01 02 03 04

Linear Polymers Ltd

Gateway Distriparks Ltd

05

HCL Technologies Ltd

State Bank of Bikaner &

06

Linde India Ltd

07

Corporate Action Calendar— May 2016 (Stock Dividend)


01 02

Dishman Pharmaceuticals &

Chemicals Ltd

03 04

05

06

07

Economic Calendar - May 2016


01 02

Nikkei India PMI Mfg

03 04

Nikkei India PMI Services

Nikkei India PMI Composite

05 06 07

Corporate Action Calendar— May 2016 (Acquisition)

Date Target Company Acquirer Company

5/2/2016 Potential Investments & Finance Ltd Private Investor

5/2/2016 Pincon Spirit Ltd Private Investor

5/2/2016 Dresen Quimica SA de CV Camlin Fine Sciences Ltd

5/3/2016 New India Investment Corp Ltd Duncan International India Ltd

5/4/2016 Moschip Semiconductor Technology Ltd Multiple acquirers

5/6/2016 Wavetronic Solutions Pvt Ltd Orpheus Energy Ltd



May 4, 2016

Result Calendar— May 2016


01 02

Alicon Castalloy Lim-

ited

ALKALI METALS LTD.

Amarnath Securities

Ltd

ARSS INFRASTRUC-TURE PROJECTS LTD.

CCL PRODUCTS (INDIA)

LTD.

COMPUAGE INFOCOM LTD.

FERVENT SYNERGIES

LTD.

HOUSING DEVELOP-MENT FINANCE

CORP.LTD.

IOL CHEMICALS &

PHARMACEUTICALS

LTD.

L&T FINANCE HOLD-

INGS LTD.

LKP Finance Limited

MAFATLAL INDUS-TRIES LTD.

Margo Finance Limited

PARRYS SUGAR INDUS-

TRIES LTD.

PRANAVADITYA SPIN-

NING MILLS LTD.

TRIBHOVANDAS BHIM-

JI ZAVERI LTD.

VIKRAM THERMO

03

ADANI PORTS AND SPECIAL

ECONOMIC ZONE LTD.

ADANI POWER LTD.

ALSTOM T&D INDIA LTD.

BASF INDIA LTD.

BENARES HOTELS LTD.

CENTURY TEXTILES & INDUS-

TRIES LTD.

CERA SANITARYWARE LTD.

GLANCE FINANCE LTD.

GODREJ CONSUMER PRODUCTS

LTD.

IND-AGIV COMMERCE LTD.

Intellect Design Arena Ltd

IL&FS INVESTMENT MANAGERS

LTD.

JAY SHREE TEA & INDUSTRIES

LTD.

MORARJEE TEXTILES LTD.

MRF LTD.

NETWORK LTD.

NITIN SPINNERS LTD.

NOIDA TOLL BRIDGE COMPANY LTD.

RAMSARUP INDUSTRIES LTD.

SANGAM ADVISORS LTD.

Shyam Century Ferrous Ltd

Star Ferro and Cement Ltd

SHOPPERS STOP LTD.

04

Accelya Kale Solutions Limitd

ADANI ENTERPRISES LTD.

AGIO PAPER & INDUSTRIES

LTD.

ASHIKA CREDIT CAPITAL LTD.

ASTEC LIFESCIENCES LIMITED

AURANGABAD PAPER MILLS

LTD.

CARBORUNDUM UNIVERSAL

LTD.

CENTURY ENKA LTD.

COSMO FERRITES LTD

DEWAN HOUSING FINANCE

CORPORATION LTD.

HEXAWARE TECHNOLOGIES

LTD.

HINDOOSTAN MILLS LTD.

H.K. Trade International Ltd

INDO AMINES LTD.

INVESTMENT & PRECISION

CASTINGS LTD.

JINDAL STEEL & POWER LTD.

MANGALAM CEMENT LTD.

NELCO LTD.

NUCLEUS SOFTWARE EXPORTS

LTD.

Orient Cement Ltd

SKS MICROFINANCE LTD.

TVS ELECTRONICS LTD.

05

AARTI DRUGS LTD.

ADVANCE METERING TECHNOL-OGY LTD.

Blueblood Ventures Ltd

CASTROL INDIA LTD.

EICHER MOTORS LTD.

EMAMI LTD.

GREAT EASTERN SHIPPING

CO.LTD.

GILLETTE INDIA LTD.

Godrej Properties Ltd

HERO MOTOCORP LTD.

HIL LTD.

HINDUSTAN COMPOSITES LTD.

IIFL Holdings Limited

INDBANK MERCHANT BANKING

SERVICES LTD.

IND BANK HOUSING LTD.

INSILCO LTD.

Kore Foods Ltd

MULTI COMMODITY EXCHANGE

OF INDIA LTD.

Mega Nirman and Industries Ltd

NEW DELHI TELEVISION LTD.

NOCIL LTD.

PROCTER & GAMBLE HYGIENE &

HEALTH CARE LTD.

SMARTLINK NETWORK SYSTEMS

LTD.

06

AARTI INDUSTRIES LTD.

AMRUTANJAN HEALTH CARE LTD.

AYM Syntex Ltd

BATLIBOI LTD

BIRLA CORPORATION LTD.

ADITYA BIRLA MONEY

LTD.

EVEREADY INDUSTRIES

INDIA LTD.

GREAVES COTTON LTD.

Inox Wind Ltd

JK PAPER LTD.

JSW Holdings Limited

OMAX AUTOS LTD.

PFIZER LTD.

RELIANCE CAPITAL LTD.

SIEMENS LTD.

SUN PHARMA ADVANCED RESEARCH COMPANY LTD

Titan Company Limited

WOCKHARDT LTD.

NIVI TRADING LTD.

07

GRASIM INDUSTRIES

LTD

HESTER BIOSCIENCES

LTD.

JAYANT

AGRO-ORGANICS LTD

Nirvikara Paper Mills

Ltd

OLYMPIC

MANAGEMENT & FINANCIAL SERVICES

LTD.

TASTY BITE EATABLES

LTD.

VOITH PAPER FABRICS

INDIA LTD



May 4, 2016

Market Snapshot

Sectoral Indices Performance

Index Closing % Change % MTD % YTD

NIFTY Auto 8,299 0.12% 0.1% 0.5%

NIFTY Bank 16,543 -1.50% -1.5% -2.2%

NIFTY Energy 8,419 0.17% 0.2% -1.9%

Nifty Financial Services 6,676 -0.72% -0.7% -5.4%

NIFTY FMCG 19,728 -0.05% 0.0% -2.3%

NIFTY IT 11,118 -0.70% -0.7% -0.8%

NIFTY Media 2,430 0.26% 0.3% -7.7%

NIFTY Metal 2,065 0.96% 1.0% 13.1%

NIFTY Pharma 11,272 -0.19% -0.2% -5.8%

NIFTY PSU Bank 2,403 -1.66% -1.7% -16.1%

NIFTY Realty 174 -0.57% -0.6% 0.7%

Top Gainers - Nifty

Stock CMP (INR) % Chg % MTD % YTD

AUROPHARMA 803.25 4.34% 5.7% -8.3%

BHARTIARTL 368.35 2.95% 1.3% 8.2%

INFRATEL 383.65 2.13% 2.3% -10.4%

IDEA 119.90 1.87% 1.1% -16.5%

GRASIM 4,142.45 1.76% 1.4% 10.3%

Top Losers - Nifty

Stock CMP (INR) % Chg % MTD % YTD

COALINDIA 279.15 -3.29% -3.1% -15.4%

LUPIN 1,575.60 -2.68% -2.0% -14.2%

BHEL 124.45 -2.55% -0.8% -26.4%

ICICIBANK 221.10 -2.49% -6.7% -15.4%

AMBUJACEM 218.60 -2.32% -1.1% 7.7%

Bulk Deals - NSE

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

Gyscoal Alloys Ltd MARFATIA NISHIL SURENDRA SELL 156384 48.98 0.77

Prakash Steelage Ltd PALLADIUM FINSERVE PRIVATE LIMITED BUY 894956 7.23 0.65

Prakash Steelage Ltd PALLADIUM FINSERVE PRIVATE LIMITED SELL 883304 7.12 0.63

Gyscoal Alloys Ltd MARFATIA NISHIL SURENDRA BUY 118328 50.73 0.60

Chromatic India Ltd UPENDRA HIRALAL DALAL SELL 1313787 3.55 0.47

Gyscoal Alloys Ltd PALLADIUM FINSERVE PRIVATE LIMITED SELL 103071 44.57 0.46

Chromatic India Ltd UPENDRA HIRALAL DALAL BUY 1313787 3.46 0.45

Gyscoal Alloys Ltd DRAUPADI SAHA BUY 100000 43.86 0.44

Chromatic India Ltd MARFATIA NISHIL SURENDRA SELL 798377 3.53 0.28

Gyscoal Alloys Ltd PALLADIUM FINSERVE PRIVATE LIMITED BUY 57154 47.78 0.27

Delivery Spurt stocks

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

Shrenuj & Co. 410,405 4321% 2.94%

Trent 135,873 1252% 0.43%

ITD Cem 87,977 890% 0.33%

Supreme Pet- 255,636 856% 3.35%

United Breweries 654,921 791% 0.66%

G N F C 519,168 706% 1.45%

Eros Intl.Media 831,656 687% 6.70%

T B Z 313,158 658% -2.27%

BGR Energy Sys. 589,614 571% 11.46%

Berger Paints 1,051,670 400% 3.88%

*Bulk deals data as on May 02, 2016

*Sectoral Indices data as on May 02, 2016



May 4, 2016

Current Portfolio and Performance Summary as on 3rd May’16

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

Dewan Housing Finance

Corporation Financial Services Feb 10, 2016 15.4% 193* 204

Maruti Suzuki India Auto Mar 14, 2016 9.8% 3,663 3,820

MT Educare Services Mar 14, 2016 9.8% 159 166

Infosys IT Apr 21, 2016 10.7% 1,220 1,178

Heritage Foods Consumer Goods Apr 25, 2016 9.8% 515 505

GIC Housing Finance Financial Services May 02, 2016 7.8% 268 263

Cash Cash 36.9%

Total Total 100%

*Weighted average price

*7.5% DHFL was bought at 237



May 4, 2016

Historical Performance as on 3rd May’16

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

Religare Alpha 4.23% 3.86% -2.37% 3.69% 13.56%

Nifty 0.44% 2.53% -3.65% -7.02% -1.74%

Outperformance 3.79% 1.33% 1.28% 10.72% 15.30%



May 4, 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.



May 4, 2016

Hitesh Agrawal [email protected]

Ajay Kumar Srivastava [email protected]

Ajay Pasari, CFA [email protected]

Ajit Mishra [email protected]

Ashish Bansal [email protected]

Gaurav Sharma [email protected]

Swati Saxena [email protected]

Manoj M Vayalar [email protected]

Vipin Kumar [email protected]

Team Members



May 4, 2016

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

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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 : ……………………………………………………………………………………………………………………

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[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

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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

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