Vol.

: 334
27 MAR ,2017

Index
MARKET VIEW
Market View 1

Company Update 2 THE GOVERNMENT IS TAKING IMPORTANT STEPS TO CURE LONG PENDING
ECONOMIC DISEASE
Around the
Economy 3
This Government, from the day one is taking many steps to cure long pending economic
diseases. The problem of nonperforming assets has taken the toll of all economies of the world
Knowledge Corner 3
including India. The capital base of our PSU banks has taken a remarkable hit in last one dec-
ade and particularly last three years. Government is forced to recapitalize public sector banks
Mutual Fund 4
in every budget. Unless and until this problem of NPA is addressed with attack from all sides,
this economic disease cannot be cured. The Government has formed a task force to address
Commodity Corner 5
the NPA issue. They have come out with Willful Defaulters Regulations to deal with them
strictly. Now The Finance Minister has made statements that within couple of days a compre-
Forex Corner 6
hensive policy to deal with NPA problems will be announced. The GST Bill will be placed in
parliament in next week for final approval. All these initiatives / reforms will give another boost
Report Card 7
to the economy.
Short Term Call Status 8

Editor & Contributor
Darshana Mishra
Special Contributors
Kunal Shah
Dhaval Ghodasara
On the basis of many reforms the interest rate has moderated and the full impact of this
lower interest rate will be felt in coming two years. The cost of borrowings will come down,
the consumer spending will increase on back of lower interest rate and the demand im-
provement will lead to more capacity utilization and new capacity build up. Many sectors
in the economy are turning around which will lead to higher earnings growth. It is quite possible
that 15% plus earning growth will be achieved in next couple of years. The another emerging
sector is related to finance where there is a remarkable shift from physical saving to financial
saving. Private sector banks, insurance companies, asset and wealth management companies
are going to gain a lot from this shift in tendency of common Indian.

Technically, the market is having a strong support near 9000 and strong resistance at
9200.

For suggestions, feedback

and queries
jstreet@jhaveritrade.com

Kamal Jhaveri
MD- Jhaveri Securities

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Company Update : PETRONET LNG LTD

Company Basics Financial Basics Share Holding Pattern
BSE Code 532522 FV (`) 10.00 Holder's Name % Holding
EPS (`) (TTM) 19.71 Promoter 50.00
NSE Symbol PETRONET P/E (x) (TTM) 19.48 Public 50.00

EQUITY (` in Cr.) 750 P/BV (x) (TTM) 4.52

MKT.CAP (` in Cr.) 28800.00

Outlook and valuation : We recommend BUY on the stock on account of expansion plans at Dahej plant by
FY17E. Also increased by cut of custom duty and expansion of Kochi-Mangalore pipeline. We target stock to
trade at EV/EBITDA of 8.14x in FY17E. (Target price of Rs.460)

Company Overview :
The Government of India, in July of the year 1997 approved the formation of a Joint Venture Company (JVC) for securing
competitive Liquefied Natural Gas (LNG) supply and for development of facilities for the import and utilization of LNG. The
GAIL (India) Ltd (GAIL), Oil & Natural Gas Corporation Ltd (ONGC), Indian Oil Corporation Ltd (IOCL) and Bharat Petroleum
Corporation Ltd (BPCL) formed Petronet LNG Limited as a Joint Venture company. The Company was incorporated in 2nd
April of the year 1998 to import LNG and set up LNG terminals in the country; it involves India's leading oil and natural gas
industry players. It has (LNG) receiving and regasification terminal at Dahej, Gujarat. Petronet also has a strategic partner-
ship with French-based Gas Company, GAZ De France and a LNG sale and purchase agreement with Ras Laffan Liquefied
Natural Gas Company, Qatar for the supply of LNG in India.

Investment rationale for Petronet LNG

As against expanded capacity of 15mmtpa, Petronet has got firm usage for 16.75mmtpa. It already operated at annualized rate of
12.4mmt in 1HFY17. Hence, we do not have much of a concern about utilization of Dahej facility.

We expect Dahej facility to ramp up to 15mmtpa by FY18. The facility is expected to expand to 17.5mmtpa in the next phase. Addi-
tionally, work has started on the Kochi-Mangalore pipeline. Even if this is not completed, we expect Kochi refinery expansion to
raise utilization of Kochi LNG terminal to 20% in FY18.

Once the Kochi-Mangalore pipeline is completed, utilization would ramp up to 50%. For long-term growth, the company is also con-
templating on LNG terminals overseas.

Petronet completed its 5mmtpa expansion at Dahej at a cost of INR20b. Any green field LNG terminal of 5mmtpa would cost
~INR50b. This makes Dahej the cheapest alternative available to the consumers.

Cut down of LNG Custom duty from 5% to 2.5% by government and government focus on providing gas fuel to all households.

Once Vizag port has been started, Petronet will be able to supply gas to all the major steel producer located in Chhattisgarh, Odisha
& Jharkhand.

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Around The World

Weekly Market Recap :
On the economic front, India's current account deficit (CAD) at $7.9 billion (1.4% of GDP) in Q3 of FY 2017, was higher than $7.1 billion
(1.4% of GDP) in Q3 of FY 2016 and $3.4 billion (0.6% of GDP) in the preceding quarter. The data was released on 23 March 2017. the
Union Cabinet chaired by the Prime Minister Narendra Modi has approved the four Goods and Services Tax (GST) related bills on 20
March.

On macro front, the U.S. President was unable to pass the new health policy in the parliament on account of which stock market loses.
The new bill has been introduced that will prevent companies that have temporary H-1B visa from using them to train workers and then
moving these jobs abroad.

Market Eye Week ahead :

The market may remain volatile as traders roll over positions in the futures & options (F&O) segment from the near month March 2017
series to April 2017 series. State-run oil marketing companies (PSU OMCs) and auto stocks will be in focus as PSU oil marketing compa-
nies will undertake fuel price revision during the next weekend.

On the global front, in the US, Chicago Federal Reserve Bank President Charles Evans will speak at a Global Interdependence Center
event in Madrid, Spain, on Monday. Dallas Federal Reserve Bank President Dennis Kaplan takes part in a Discussion of Economic Con-
ditions and the Role of Monetary Policy at Texas A&M University, in College Station, Texas, on the same day.

Key Events / Factors to Watch

1. Mon : Bd Meet: Col-Pal, Mindtree ltd
2. Tue : Bd Meet: Himachal futuristic
3. Wed : Dividend: BEL Ltd, Hind Zinc
4. Thu: Dividend: PFC Ltd, Sharda Cropchem
5. Fri : Dividend: Infratel

Knowledge Corner :
INITIAL PUBLIC OFFERING (IPO)

Initial public offering is the process by which a private company can go public by sale of its stocks to general public. It
could be a new, young company or an old company which decides to be listed on an exchange and hence goes public.

How it works?
After IPO, the company's shares are traded in an open market. Those shares can be further sold by investors through
secondary market trading.

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Mutual Fund Corner

Top 10 Sector Break-Ups
Fund Name
Sector Weights Fund (%)
Scheme Name BIRLA SUNLIFE ADVANTEGOUS FUND
Financial 32.34
AMC BSL Asset management Company Automobile 10.85
Energy 10.87
Type Open Ended & Equity Multi Cap
Healthcare 7.35
Category Open-ended FMCG 3.66
Launch Date Feb 1995 Technology 4.75
Metals 7.61
Fund Manager Satyabrata Mohanty Oct 2011 Construction 5.97
Net Assets (` Diversified 6.19
Rs. 2693.5 as on Feb 28, 2017
In crore ) Communication 2.60
History 2013 2014 2015 2016 Risk Analysis
Volatility Measures
NAV (Rs) 173.66 278.11 292.67 317.48
Standard Deviation 18.21
Total Return (%) 7.23 60.14 4.77 8.48 Sharpe Ratio 1.17
Beta 1.15
Rank (Fund/Category) 27/73 9/145 59/71 31/143
R-Squared 0.80
Alpha 12.33
52 Week High (Rs) 173.76 280.58 314.86 362.13

52 Week Low (Rs) 136.14 164.16 272.70 252.92

Composition (%)
Equity 97.92
Net Assets (Rs.Cr) 278.89 393.02 580.62 1857.45 Debt 3.31
Cash -1.23
Expense Ratio (%) 2.87 2.85 2.81 2.39

Fund Performance v/s S&P BSE 100 Fund Style

Investment Style
Growth Blend Value
Large
Capitalization

Medium

Small

Fund
S&P BSE 200
(Rebased to 10,000) Source : - www.valueresearchonline.com

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Commodity Corner

BULLION
FUNDAMENTAL: Last week, bullion prices rose as the U.S. Federal Reserve's cautious message on interest rates left the dollar around
five-week lows. The U.S. Federal Reserve delivered an interest rate increase as widely anticipated, but did not alter its earlier forecast
for a total of three rate increases this year, dashing hopes of dollar bulls who had waited for hints of a possible fourth hike in 2017. Rate
rises lead to higher bond yields, which increase the opportunity cost of holding non-yielding bullion and tend to boost the dollar, in which
gold is priced. Investors were also looking ahead to the Group of 20 (G20) finance leaders' meeting in Germany this weekend, where
any attempt by the Trump administration to pursue protectionist policies could fuel demand for gold as a safe-haven Still, some market
strategists see near-term headwinds for precious metals, especially since the bullish sentiment spurred by Trumps proposals to juice the
U.S. economy through fiscal stimulus measures havent entirely vanished.

RECOMMENDATION : BUY GOLD @ 28350 SL 28100 TGT 28650-28880 BUY SILVER @40650 SL 39850 TGT 41250-42000

BASE METALS

FUNDAMENTAL: Base metals prices last week ended with gains where zinc prices rallied the most by more than on expectations the clo-
sure and suspensions of big mines will create shortages. Copper prices ended with over 2 percent posting its biggest weekly gain since
mid-February in response to a weak U.S. dollar and ongoing mine supply concerns. Nickel prices gained as support seen as the Philip-
pines has repeatedly indicated that it will slash output. A Philippine nickel ore producer plans to reopen two mines suspended for envi-
ronmental violations while it awaits the outcome of an appeal, in a test of rules around the government's crackdown on the industry. The
two mines were among 10 suspended last year during a months-long audit led by Environment Secretary Regina Lopez, who later or-
dered the closure of more than half of operating mines in the world's top nickel ore exporter. The move angered the industry, which said
the closure orders were baseless and urged lawmakers this month to reject the ministerial appointment of Lopez, a committed environ-
mentalist, in favor of a more moderate replacement.

RECOMMENDATION : SELL ALUMINIUM @ 125.5 SL 127.5 TGT 123.8-121 SELL COPPER @ 392.00 SL 404 TGT 384-378 SELL ZINC @ 190
SL 194.5 TGT 184.5-180.5 SELL NICKEL @ 675 SL 690 TGT 645-620

ENERGY

FUNDAMENTAL : Last week crude oil prices dropped by one percent as speculators sharply cut long positions during last week's rout, on
concerns that an OPEC production cut was failing to reduce a global supply overhang. The market failed to rebound after Saudi Arabia
Minister Khalid al- Falih said the cuts by the OPEC and non-OPEC producers could be extended beyond June if oil stockpiles stayed
above long-term averages. Saudi Arabia has cut output by more than its share under the November 2016 deal. Investors weighed the
impact of the first oil cut from the Organization of the Petroleum Exporting Countries in eight years against rising U.S. shale oil output
and high inventories. However, oil has not been able to reclaim the range that prevailed through most of 2017 before last week's rout.
Instead of rebounding to $53 a barrel, U.S. crude has remained stuck around $49. The potential for increased U.S. production continues
to build, as Baker Hughes weekly rig count data showed an increase of 14 drilling rigs in the United States. Futures positioning showed
that last week's rout pushed many speculators to bail out of long positions.

RECOMMENDATION : SELL CRUDE @ 3240 SL 3320 TGT 3170-3060 SELL NAT.GAS @ 198 SL 208 TGT 190-184

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Commodity Corner
Forex Corner
Market Recap :

The Indian rupee on Monday strengthened further

against the US dollar on the hopes of more re-
forms by the Narendra Modi-led government.

On Friday, Union finance minister Arun Jaitley

had said that the government is working on a
radical proposal to resolve the issue of bad debts
in the Indian banking systems.

The dollar index, which measures the US cur-

rencys strength against major currencies, was
trading at 99.294down 0.33% from its Mondays
close of 99.627.

Market Eye Week ahead :

The USDINR On daily chart pair below all short term, medium term, and long term moving average which is 20,
100 and 200.Whereas on weekly chart pair has continually taking support at 50WMA. Which suggest short term
trend is bearish. So for trading perspective, one could sell to the level 65.60-65.50 with SL of 66.05 for target of
65.30-65.20.

USD/INR
Level S2 S1 CP R1 R2 High Low Close
USD/INR 65.08 65.24 65.44 65.60 65.80 65.63 65.27 65.41

EUR/INR
Level S2 S1 CP R1 R2 High Low Close
EUR/INR 70.11 7.39 70.64 70.92 71.17 70.85 70.35 70.68

GBP/INR
Level S2 S1 CP R1 R2 High Low Close
GBP/INR 80.15 80.93 81.52 82.30 82.89 82.10 80.73 81.72

JPY/INR
Level S2 S1 CP R1 R2 High Low Close
JPY/INR 57.35 58.12 58.61 59.38 59.87 59.09 57.83 58.90

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J Street Recommendations Report Card

Nifty last week opened at 9166.95 and registered a high at 9167.60. Nifty fell to a low of 9019.30 and closed the
week at 9108 thereby showed a net fall of 0.57% on week to week basis. Correction to 9029-8950 can be used for
accumulation and buying with a stop loss of 8800. Resistance is at 9177-9218. Traders already long can take prof-
its at 9177-9218 as the opportunity arises.

Top Fundamental Stocks

Absolute
Stocks Rec. Date CMP on Rec. CMP Target Return @ Status
CMP
Petronet 20/02/2017 400 404 490 1% Buy

Escorts 06/02/2017 383 521 575 36% Buy

Edelweiss financial 16/01/2015 117 137 175 17% Acculumate

IOC Ltd 27/02/2017 376 372 470 -1% Acculumate

Marico 20/02/2016 255 288 340 13% Buy

Voltamp transformer 13/02/2017 925 982 1080 6% Buy

Alembic Pharmaceuti-
30/08/2016 630 588 732 -7% Profit book
cals
Capital first 06/06/2016 552 709 660 28% Accumulate
Wonderla 25/04/2016 387 383 498 -1% Buy
Mold Tek Pack 04/04/2016 49 229 179 367% Profit book
Gareware wall ropes 28/12/2015 425 690 550 62% Buy
Welspun syntex/AYM 23/11/2015 121 75 223 -38% Buy

Natco pharma 02/11/2015 509 773 650 52% Profit book

Ahluwalia contracts 24/08/2015 235 314 368 34% Profit book

Infinite Computer Sol. 20/07/2015 190 226 255 19% Buy

Sadbhav Engineering
04/05/2015 298 307 430 3% Buy
Ltd.
Omkar speciality
16/03/2015 152 152 251 0% Buy
Chemicals
DHFL 16/02/2015 252 363 368 44% Accumulate
M&M 12/01/2015 1238 1275 1450 3% Buy
Havells India 27/10/2014 274 449 346 64% Profit book
PTC India Fin. Ser. 07/07/2014 39 40 45 3% Profit book
Rule no 1: Never lose money. Rule no 2: Never forget Rule no.1. Warren buffet

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J Street Short Term Call Status

Sr. BUY/ TRIGGER %
No.
DATE STOCK RANGE RANGE TGT SL STATUS
SELL PRICE RETURN
1 8-Feb-17 CESC BUY 800 808 804.00 840.00 776 TA 4.2
2 9-Feb-17 GAIL BUY 483 488 485.50 505.00 471 TA 4.22
3 10-Feb-17 MOTHERSUMI BUY 345 352 348.50 366.00 337 TA 3.8
4 13-Feb-17 EMAMILTD BUY 1135 1145 1140.00 1190.00 1100 SL -3.8
5 14-Feb-17 INFY BUY 976 988 982.00 1024.00 949 TA 4.2
6 15-Feb-17 TECHM BUY 502 508 505.00 528.00 487 EXPIRE .
7 16-Feb-17 IGL BUY 1040 1052 1046.00 1094.00 1011 SL -3.6
8 17-Feb-17 BAJFINANCE BUY 1090 1105 1097.50 1149.00 1060 SL -3.8
9 20-Feb-17 L&TFIN BUY 115 117 116.00 122.00 112 TA 4.2
10 21-Feb-17 HEXAWARE BUY 212 216 214.00 225.00 206 TA 4.2
11 22-Feb-17 DISHTV BUY 92 94 93.00 98.50 88 TA 4
12 23-Feb-17 KTKBANK BUY 125 128 126.50 134.00 121 TA 4.2

13 28-Feb-17 BEML BUY 1330 1345 1337.50 1397.00 1296 EXPIRE .

14 1-Mar-17 ARVIND BUY 376 381 378.50 396.00 366 TA 4.2

15 2-Mar-17 M&M BUY 1340 1356 1348.00 1410.00 1298 EXPIRE .
16 3-Mar-17 ULTRACEMCO BUY 3800 3840 3820.00 3990.00 3710 TA 4.4
17 6-Mar-17 TITAN BUY 434 441 437.50 457.00 423 TA 4.5
18 7-Mar-17 LICHSGFIN BUY 560 570 565.00 594.00 546 TA 5.1

19 8-Mar-17 COLPAL BUY 925 935 930.00 972.00 898 TA 4.6

20 9-Mar-17 ZEEL BUY 507 516 511.50 538.00 491 OPEN .
21 10-Mar-17 UPL BUY 705 715 710.00 744.00 686 OPEN .
22 14-Mar-17 JUBLFOOD BUY 1064 1080 1072.00 1127.00 1028 TA 4.4
NA-
23 15-Mar-17
TIONALALUM
BUY 72 73 72.50 81.00 66 OPEN .
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J Street Short Term Call Status

BUY/ TRIGGER %
Sr. No. DATE STOCK RANGE RANGE TGT SL STATUS
SELL PRICE RETURN
24 16-Mar-17 JINDALPOLY BUY 348 352 350.00 386.00 315 TA 4.6
25 17-Mar-17 IBULHSGFIN BUY 940 954 947.00 1004.00 912 OPEN .

26 20-Mar-17 HAVELLS BUY 438 444 441.00 460.00 425 OPEN .

27 21-Mar-17 CUMMINSIND BUY 900 915 907.50 951.00 874 OPEN .

28 22-Mar-17 GRASIM BUY 1078 1093 1085.50 1136.00 1044 OPEN .

29 23-Mar-17 WIPRO BUY 495 523 509.00 523.00 481 OPEN .

30 24-Mar-17 JETAIERWAYS BUY 476 483 479.50 502.00 461 TA 4.8

STATUS CALLS RATIO

TA+PB 16 84.21

SL+EXIT 03 15.78

TOTAL 19 100.00

One call on daily basis is given keeping view of short term trading on closing basis.
Time frame and expected % of return is also mentioned with the suggested call.
This call are purely given on technical trading system generated by the Technical Research Desk.
Generally Expected Return on investment is 5-6 % with time horizon of 6-7 days.
Profit Booking update is considered if on an average expected return exceed 3.50-4.00 % against the
Expected return of 5-6%
Risk- Reward ratio percentage wise depends on the volatility of stock Normally it stands ( 3 : 9)

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