Sample of NdJson data: 
{"type":"data","id":"xyz"}
{"type":"value","id":"xcf"}
....
....
Here is my Retrofit and RxJava code which is working fine for fetching data with the limit=1 i.e. {"type":"data","id":"xyz"}.
 adapter.create(API.class).getData()
        .subscribeOn(Schedulers.newThread())
        .observeOn(AndroidSchedulers.mainThread())
        .subscribe(new Observer<APIData>() {
         @Override
         public void onCompleted() {}
         @Override
         public void onError(Throwable e) {}
         @Override
         public void onNext(APIData apidata) {}
         });
My model class
Model class have only two parameter:
public class APIData(){
  private String type;
  private String id;
  ..// Getter and setter for above two fields
}
Api class
public interface WarehouseAPI {
  @GET("/search?limit=1")
  public Observable<APIData> getdata ();
}
The error I am getting while replacing @GET("/search?limit=1") with @GET("/search") is Malformed JSON: Syntax error.
Question
How to proper parse the NdJson ?
Is there any way to store the response in List<APIData>
Edit-1
Now I am trying to accept the generic Response in observer:
adapter.create(APIData.class).getdata()
       .subscribeOn(Schedulers.newThread())
       .observeOn(AndroidSchedulers.mainThread())
       .subscribe(new Observer<Response>() {
        @Override
        public void onCompleted() {}
        @Override
        public void onNext(Response response) {}
 });
But getting no suitable method found for subscribe(<anonymous Observer<Response>>) 
Edit-2
However, I was doing some silly mistake and the error what I am getting in "Edit-1" section is fixed now. Now I am getting
Error:retrofit.RetrofitError: com.google.gson.JsonSyntaxException: com.google.gson.stream.MalformedJsonException: Use JsonReader.setLenient(true) to accept malformed JSON at line 2 column 2 path $