Religare Morning Digest-3rd September 2015

Religare Morning Digest
September 3, 2015
Nifty Outlook
After Tuesdays sharp decline, equity markets made a positive start on Wednesday but failed to
uphold for long and concluded the day in red. Initially, mood was positive in response to news that
the government has accepted the recommendations of A P Shah-led panel on minimum alternate
tax (MAT) that it is not applicable to foreign institutional investors (FIIs). Some recovery in rupee in
early trades was also supporting the bounce. However, underperformance from the rate sensitive
pack was hurting the sentiments from the early trade which later intensified and pulled the index in
negative territory.
Undoubtedly, its tough phase for traders due to the excessive volatility and we are not
expecting any major respite in near future. Hence, its important for them to maintain pro-active
approach in trade management and that can be done only in highly liquid fundamentally strong
counters. Needless to say, we have reached near to the major support zone of 7600 mark again and
its sustainability holds the key ahead.
Nifty
VWAP
Max Call
Max Put
7920
8500
7800
News
Religare Super Ideas
DLF jumped 3.6% on BSE after the Singapore government's sovereign wealth fund GIC
announced its decision to invest about Rs 1990 crore in two upcoming real estate development
projects of a wholly-owned subsidiary of DLF.
Bajaj Auto has posted 2% rise in its total sales during August with the company selling 3.42 lakh
units versus 3.37 lakh units in the same month of last year. Motorcycle sales rose by 2% to 2.9
lakh units against 2.84 lakh units. Commercial vehicles sales were down by 2% to 51,529 units.
Scrip
Buy/Sell
CMP
Initiation
Range
SL
Target
DABUR
Buy
280.15
278 - 280
270
300
CAIRN
Sell Fut.
141.5
143 - 145
150
128
SAIL will spend Rs 7,500 crore on modernisation and expansion programme in the current fiscal
ending March 2016.
Instrument
B/S
Lot
INITIATION
PRICE
NIFTY 7300PE
25
NIFTY
2*7200PE
50
TOTAL
FII & DII activity (Rs. in Cr.)
Sectors to watch
Derivative Ideas :
Trade Stats
Sector Name
Outlook
Category
Amt
MTD
YTD
68
TELECOMM
STABLE
FII
-675
17209
46189
52
BANKS
POSITIVE
DII
682
10533
65672
PHARMA
STABLE
36
SL
50
TARGET
10
Disclaimer: http://www.religareonline.com/research/Disclaimer/Disclaimer_RSL.html
*FII & DII data of 1st September 2015
NO OF CONTRACTS
TURNOVER
IN CR
IDXFUTS
929147
22694
IDXOPT
6406634
137769
STKFUTS
825396
21075

September 3, 2015
Religare Super Ideas
Derivative Ideas
Cairn India Limited (CAIRN)
Dabur India Limited (DABUR)
Vix is likely to settle to 20% in the short term, some

put writing seen at 7200 strike. We expect the
premium of 7200 strikes to drop.
Strategy:- Buy nifty 7300pe @ 68 and sell 2* 7200 pe

@ 52, each spread at 36, sloss 50, target 10.
Dabur outperformed broader markets today, rallied

over 5%. This up move over shadowed past three
sessions decline. This rise was backed by better than
average volume. All this suggest move up side move
in near term.
It is in down trend and has been trading in lower low

lower high formation from a long time.
Recently, buying was witnessed and it retraced
almost 61.8% as per the Fibonacci theory. This is
generally observed that stock price resume its broader
trend after retracing to these levels. Considering all, we
believe down side move in near term.
Investment PickKOTAKBANK
Scrip
CMP
Recommendation Price
Target
Duration
KOTAKBANK
608.70
705.10
900
9-12 month
KOTAKBANK
Kotak Mahindra Bank acquired ING Vysya Bank in an all-stock deal. This amalgamation has created the fourth largest private sector bank in the country. Through this
move the bank is able to increase its branch network, fee income and asset profile which would improve profitability for the merged entity going forward.
The banks Q1 June 2015 results were hit adversely by significant provisions on merger of ING Vysya Bank. However, it believes that the merger benefits will flow in due
course from both, revenue synergies as well as cost efficiencies, resulting from significant geographical and product complementarities, fuller customer segment coverage,
economies of scale and improved productivity and efficiency.
We expect the bank to deliver much higher growth than the industry in FY16-FY17, driven by market share gains in the retail and SME loan segments post-merger.

September 3, 2015
Market Snapshot
Top Gainers - Nifty
Sectoral Indices Performance

Index
Closing
% Change
% MTD
% YTD
CNX Auto
7,639
-1.38%
-3.9%
-7.8%
CNX Bank
16,253
-1.68%
-5.2%
-13.3%
CNX Energy
7,442
-0.93%
-2.7%
-13.9%
CNX Finance
6,653
-1.92%
-4.9%
-10.9%
CNX FMCG
19,856
0.47%
-1.3%
-1.3%
CNX IT
11,605
1.12%
0.0%
3.5%
CNX Media
2,244
-0.76%
-3.6%
-6.0%
CNX Metal
1,746
-1.43%
-4.8%
-34.4%
12,840
-1.28%
-2.8%
17.3%
2,962
-3.16%
-7.5%
-30.6%
157
0.71%
-2.6%
-22.6%
CNX Pharma
CNX PSU Bank
CNX Realty
Stock
Tech Mahindra
Idea Cellular
CMP (INR)
536
TCS
UltraTech Cem.
ACC
154.5
% Chg
4.6%
3.4%
% MTD
4.1%
-0.9%
% YTD
-17.3%
0.5%
2591.8
2.1%
1.1%
1.3%
2886.1
1356.35
1.8%
1.8%
-0.1%
1.6%
10.1%
-3.1%
Top Losers - Nifty

Stock
BHEL
Punjab Natl.Bank
ONGC
M&M
St Bk of India
CMP (INR)
% Chg
% MTD
% YTD
206.5
129.55
225.2
1134.55
230.55
-5.2%
-3.9%
-3.8%
-3.6%
-3.6%
-8.8%
-10.6%
-5.9%
-7.1%
-6.8%
-22.1%
-40.9%
-34.0%
-8.1%
-26.1%
Delivery Spurt stocks
Bulk Deals - NSE

Security Name
Client Name Buy/Sell
Quantity
Price Value (in Cr.)
Stock Name
Day's del. Vol. Del. Vol. spike Price change
Mercator Limited
ALBULLA INVESTMENT FUND LTD
BUY
8293585
22.48
18.64
Mercator
9081192
2801%
-5.7%
Mercator Limited
LOTUS GLOBAL INVESTMENTS LIMITED
SELL
8293585
22.48
18.64
D B Corp
362547.00
1157%
-1.3%
Housing Development and SHAASTRA SECURITIES TRADING PRIVATE SELL
2299657
58.8
13.52
Shrenuj & Co.
89414.00
863%
-4.9%
Housing Development and SHAASTRA SECURITIES TRADING PRIVATE BUY
2299657
58.77
13.52
GE Shipping Co
705307.00
782%
-1.6%
Jagran Prakashan
1183219.00
603%
-1.9%
Mandhana Indus
131188.00
558%
-1.9%
32777.00
473%
-5.2%
Vakrangee
1876856.00
380%
-6.7%
Indiabulls Hous.
2840880.00
346%
-3.6%
Kansai Nerolac
223660.00
340%
-4.8%
Dishman Pharma &Chem N.K. SECURITIES
SELL
460945 251.59
11.60
Dishman Pharma &Chem N.K. SECURITIES
BUY
460945 251.49
11.59
Plastiblends India Limite
KOLSITE CORPORATION LLP
BUY
204500 326.25
6.67
Plastiblends India Limite
KABRA EXTRUSIONTECHNIK LTD
SELL
204500 326.24
6.67
Visagar Polytex

September 3, 2015
Current Portfolio and Performance Summary as on 2nd September15
Sector
Entry Date
Weight
Construction
3/2/2015
9.6%
1,818
1,528
Consumer Goods
4/10/2015
11.2%
849
806
Pharma
6/26/2015
7.6%
719
729
Financial Services
7/21/2015
5.6%
683
702
IT
7/21/2015
5.0%
983
949
PI Industries
Fertilisers & Pesticides
7/23/2015
5.7%
659
713
Dabur India
Consumer Goods
8/5/2015
7.5%
296
280
Auto
8/13/2015
6.9%
2,660
2,329
MCX
Financial Services
8/21/2015
4.7%
1,067
965
Cash
Cash
Stock
Larsen & Toubro
Asian Paints
Aurobindo Pharma
Repco Home Finance LimHCL Technologies
Hero MotoCorp
Total Total
Reco price (`)
CMP (`)
36.1%
100%

September 3, 2015
Historical Performance as on 2nd September15
Performance Matrix
1-Month
3-Month
6-Month
1-Year
Since Inception
Religare Alpha
-5.49%
1.96%
-4.16%
0.00%
14.67%
Nifty
-9.56%
-6.31%
-13.66%
0.00%
-2.12%
Outperformance
4.07%
8.27%
9.50%
0.00%
16.79%

September 3, 2015
Research Product Basket
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.
For 1L margin*
For cash market trading

Call / Product
Call Frequency
No. of calls
Avg open call duration
% funds allocated
Total
Per Call
Intraday Calls
Intraday
2-3
< 1 day
25%
25,000
8,000
Live / RMD Calls

Master Pick
Religare Alpha
Cash
Intraday Calls
Live / RMD Calls
Master Pick
Daily
3-4
3 - 4 days
30%
30,000
4,000
Weekly
1 month
15%
15,000
5,000
Opportunity
NA
2 - 3 months
20%
20,000
As per weightage
NA
10%
10,000
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.
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.
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 1L margin*
For derivative market trading

Call / Product
Derivative Ideas
Live calls
Cash
Derivative Ideas
Live Calls
Cash
Call Frequency
No. of calls
Avg open call duration
% funds allocated
Total
Per Call
Daily
1-2
1 - 3 days
40%
40,000
40,000
Intraday / Daily
1-2
3 - 4 days
50%
50,000
50,000
10%
10,000
NA
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.
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.
It is recommended to hold 10% cash to capitalize on any opportunity that may arise in markets.

September 3, 2015
Team Members
Ajay Kumar Srivastava ajaykumar.s@religare.com
Ajit Mishra
ajit.mishra@religare.com
Ashish Bansal
ashish.bansal@religare.com
Gaurav Sharma
gaurav.sh@religare.com
Swati Saxena
swati.saxena@religare.com
Manoj M Vayalar
manoj.vayalar@religare.com
Munjal Mehta
munjal.mehta@religare.com

September 3, 2015
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]
S. No.
Statement
Answer
Yes
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]
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
No
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?
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?

I/we have been engaged in market making activity for the subject company?
No
No
No
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]
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.
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
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Religare Super Ideas

FII & DII activity (Rs. in Cr.)

*FII & DII data of 1st September 2015