Vol.

: 344
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Index

Market View 1
M AR K E T V I E W
Company Update 2
GOOD MONSOON PROSPECTS & EARNINGS OUTLOOK IS HOLDING THE MARKET
Around the
Economy 3 Due to weakening of El Neno effect the outlook of monsoon is normal to above normal

Knowledge Corner 3 and the timely entry of monsoon is huge positive for the Indian market. Everyone is expecting
correction in the market but slew of positive factors coupled with liquidity is holding the market
Mutual Fund 4 high. Every correction is being bought either by domestic institutes, retail participants or FIIs.
Even though the GST rollout from 1st July is revenue accretive, the initial problems can be-
Commodity Corner 5
come a reason for significant correction. But as we know that the Indian economy is largely
Forex Corner 6 dependent on good monsoon, the arrival of the same can negate any bad news in near to me-
dium term. The RBI has paused in recent policy meeting but hinted at softening of inflation go-
Report Card 7
ing forward. The chances of rate cut have also increased in the next meeting fueling the rate
Short Term Call Status 8 sensitive stocks. Continuous rollout of reforms has also increased the hope for rating upgrade
and revival in corporate earnings. Stable Dollar and stable oil and gas prices are helping the
Indian economy to gain strength. In this scenario, if the GST implementation is executed with
minimum of problems the market will continue its dream run.
Special Contributors
Kunal Shah
Technically, there is strong resistance at 9710-9760 range with strong support at 9600-9550-
Dhaval Ghodasara
9500.

Kamal Jhaveri
For suggestions, feedback MD- Jhaveri Securities
and queries
jstreet@jhaveritrade.com

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Company Update : MANAPPURAM FINANCE LTD

Company Basics Financial Basics Share Holding Pattern
BSE Code 531213 FV (`) 2.00 Holder's Name % Holding
EPS (`) (TTM) 7.64 Promoter 34.45
NSE Symbol Manappuram P/E (x) (TTM) 11.66 Public 65.55

EQUITY (` in Cr.) 84 P/BV (x) (TTM) 2.74

MKT.CAP (` in Cr.) 7497

Outlook and valuation : We recommend BUY on the stock BUY rating for the stock and value MGFL at
SoTP valuations, with gold business at 3.0x P/BV, micro-finance at 4.2x P/B FY18E. Subse-
quently, our target price stands at INR 130.

Company Overview :
Manappuram Finance Ltd (Formerly known as Manappuram General Finance and Leasing Ltd) is a non-banking
finance company. The company provides a range of services, including gold loans, vehicle finance, insurance, for-
eign exchange services, distribution of mutual funds and other financial products. The company currently operates
through more than 1000 branches spread across the country. During the year 1994-95, the company opened new
branches in Calicut, Guruvayur, Ernakulam and Thriprayar. In the year 2002, they started Forex business as a
part of its diversification.

Investment rationale for Manappuram Finance Ltd

Despite the impact of demonetization, Manappuram Finance (MGFL) recorded an all-round performance for Q3FY17 with PAT at
INR 2.036 bn (increased 101.5% on Y-o-Y basis and 52% on Q-o-Q basis) largely led by robust increase in Net interest in-
come (increased 53% on Y-o-Y basis and 6.8% on Q-o-Q basis) and controlled operating expenses (increased merely 9.6% on Y- o-
Y basis).

Product diversification strategy and rising gold loan volumes (gold holdings up 11% Y-o-Y; with large focus on-line gold loan product)
coupled with improved gold loan quality and greater thrust on collections emerging from rapidly improving microfinance segment
boosted the earnings for the quarter.

The share of new businesses (microfinance, mortgage and housing and commercial vehicle financing) increased to 15% in
Q3FY17 of overall AUMs.

Asset quality largely stable: With stressed legacy gold portfolio behind and MGFL focusing on shorter tenure products, laying
greater emphasis upon regular interest collections and tightened recognition norms, the asset quality stands as one of the best in
the industry.

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Around The World

Weekly Market Recap :
The RBI's Monetary Policy Committee (MPC) in its meeting held on Wednesday, 7 June 2017, decided to keep the policy
repo rate under the liquidity adjustment facility (LAF) unchanged at 6.25%. Consequently, the reverse repo rate under the
LAF remains at 6%, and the marginal standing facility (MSF) rate and the Bank Rate at 6.5%.

British Prime Minister Theresa May's Conservative party has fallen short of an outright majority in the UK's general election.
China's May exports rose 8.7% from a year earlier, while imports expanded 14.8%, both beating expectations, official data
showed. US nonfarm payrolls increased 138,000 in May, missing the forecast, suggesting the labour market was losing mo-
mentum.

Market Eye Week ahead :

The government will announce industrial production data for the month of April 2017 on 12 June. The data on inflation based
on CPI or retail inflation for May 2017 will also be announced on that day. The data on inflation based on WPI for May 2017 is
slated to release on 14 June 2017. IMD in its weekly weather report published on 8 June said that from 8th June to 14th June
2017 rain very likely at most places over west coast and northeastern states.

On the global front, US Federal Reserve's monetary policy statement is due on Wednesday, 14 June 2017. China's industrial
production data for the month of May 2017 is scheduled to release on Wednesday, 14 June 2017. On the same day, Japan's
and Eurozone's industrial production data for April is also due.

Key Events / Factors to Watch

1. Mon : Dividend: JSW Steel
2. Tue : Dividend: Nerolac, TCS
3. Wed : Dividdend: Can fin homes
4. Thu: Dividends:Asian paints,Vijaya Bank
5. Fri : Dividends: Tata comm, Navin fluro

Knowledge Corner :
DEBENTURES

A type of debt instrument that is not secured by physical assets or collateral.

Why Debenture?

Debentures are backed only by the general creditworthiness and reputation of the issuer. A debenture is an un-
secured form of investment. They are a useful to raise money for short period of time.

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Mutual Fund Corner

Top 10 Sector Break-Ups
Fund Name
Sector Weights Fund (%)
Scheme Name Reliance Midcap and Small Cap Funad
Financial 18.15
AMC Reliance Nippon Life Asset Management Co Ltd Energy 5.43
Automobile 5.85
Type Open Ended & Equity Mid Cap
Healthcare 8.49
Category Open-ended FMCG 8.54
Launch Date December 2006 Services 12.36
Technology 3.05
Fund Manager Sunil Singhania & Samir Rachh Construction 11.59
Net Assets (` Engineering 5.25
Rs. 2947.3 cr as on May 31, 2017
In crore ) Chemicals 12.57
History 2014 2015 2016 2017 Risk Analysis
Volatility Measures
NAV (Rs) 37.17 45.07 51.19 62.63
Standard Deviation 17.31
Total Return (%) 103.13 21.24 13.58 22.35 Sharpe Ratio 1.00
Beta 1.06
Rank (Fund/Category) 4/50 2/36 1/34 19/24
R-Squared 0.66
Alpha 11.16
52 Week High (Rs) 37.17 45.07 56.10 -

52 Week Low (Rs) 17.49 36.80 36.69 -

Composition (%)
Equity 95.94
Net Assets (Rs.Cr) 1623.67 2233.01 4115.12 4966.78 Debt 4.33
Cash -0.27
Expense Ratio (%) 1.91 1.71 1.79 -

Fund Performance v/s Bse 200 Fund Style

Investment Style
Growth Blend Value
Large
Capitalization

Medium

Small

Fund
S&p bse Mid small cap
(Rebased to 10,000) Source : - www.valueresearchonline.com

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Commodity Corner

BULLION
FUNDAMENTAL: Bullion prices dropped as the dollar strengthened despite a market fraught with the type of political drama
that would ordinarily have offered a boost to precious metals. Pressure also seen after British elections failed to deliver a
clear majority for Prime Minister Theresa May, knocking the pound sharply lower and helping lift the dollar index to its high-
est since late May. Prices failed to capitalize on renewed geopolitical uncertainty, as the UK general election resulted in a
hung parliament, sparking uncertainty as to whether Brexit talks would be delayed. With the start of Brexit talks less than
two weeks away, investors fear that Theresa Mays faces a difficult start to Brexit negotiations in the wake of the general
election result, as her Conservative party lost the majority in parliament it held prior to the election.

RECOMMENDATION : SELL GOLD @ 29200 SL 29500 TGT 28850-28700 SELL SILVER @40000 SL 40850 TGT 39450-39100

BASE METALS
FUNDAMENTAL: On weekly basis, base metals ended with mixed node recovering from lows, where copper prices gained
by 2.75 percent helped by concerns over supply from Chile, recent data pointing to robust import demand in China and
falling stocks of the metal. Copper inventories in LME warehouses fell 9475 tonnes on Friday to 276,875 tonnes and are
down almost 20 percent from a seven-month high May. Copper mines in global major copper producing regions Chile and
Indonesia have suffered continuous strikes since the beginning of 2017, raising market concerns on copper supply. How-
ever, according to China Customs, imported copper concentrate supply is ample in Chinas market for now as the strikes
make limited impact on copper supply actually. Workers at Freeport-McMoRan Incs Grasberg copper mine in Indonesia an-
nounced to launch strike in May, following a 43-day strike at Chilean Escondida copper mine.

RECOMMENDATION : SELL ALUMINIUM @ 125 SL 127 TGT 122.5-120.5 BUY COPPER @ 370 SL 364 TGT 378-385 BUY ZINC @ 160 SL
156 TGT 164.5-166 BUY NICKEL @ 570 SL 558 TGT 585-595

ENERGY

FUNDAMENTAL Crude oil prices dropped by over 3% as pressure after investors braced for a rise in Libyan output while the
:

number of active U.S. drilling rigs rose. An unexpected rise in US crude stocks last week intensified concerns that the con-
tinuing production cuts by the OPEC and Russia arent effectively reducing the glut of oil that has suppressed oil prices for
over two years. The report showed a surprise rise of 3.3mbls in crude inventoriesthe first weekly rise in nine weeks, as
well as increases in gasoline and distillate stockpiles and weak demand for petroleum products. The Organization of the Pe-
troleum Exporting Countries and other big producers have agreed to pump almost 1.8 million barrels per day (bpd) less than
they supplied at the end of last year, and hold output there until the first quarter of 2018.

RECOMMENDATION : SELL CRUDE @ 3040 SL 3140 TGT 2940 BUY NAT.GAS @ 193 SL 188 TGT 198-206

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Commodity Corner
Forex Corner
Market Recap :

The Indian rupee weakened against the US dollar

tracking losses in the local equity markets. Trad-
ers are cautious ahead of the key macro eco-
nomic data due later on Monday.

The 10-year bond yield was trading at 6.515%

compared to its previous close of 6.503%. Bond
yields and prices move in opposite directions. .

The dollar index, which measures the US cur-

rencys strength against major currencies, was
trading at 97.167, down 0.11% from its previous
close of 97.274.

Market Eye Week ahead :

The USDINR On daily chart pair below all short term, medium term, and long term moving average which is 50,
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 64.60-66.30 with SL of 64.85 for target of
64.10-63.90.

USD/INR
Level S2 S1 CP R1 R2 High Low Close
USD/INR 64.08 64.28 64.46 64.62 64.84 64.68 64.30 64.40

EUR/INR
Level S2 S1 CP R1 R2 High Low Close
EUR/INR 71.48 71.78 72.36 72.66 73.24 72.93 72.05 72.09

GBP/INR
Level S2 S1 CP R1 R2 High Low Close
GBP/INR 80.25 81.26 82.50 83.51 84.75 83.75 81.50 82.26

JPY/INR
Level S2 S1 CP R1 R2 High Low Close
JPY/INR 57.73 58.06 58.63 58.96 59.53 59.19 58.29 58.40

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J Street Recommendations Report Card

Nifty last week opened at 9656.30, attained a high at9709.30 and fell to a low of 9608.15. Nifty closed the week
at 9668.25 thereby showed a net flat rise of 0.15%.Traders long and holding the same can revise the stop loss to
9547.Traders can buy above 9710 with low of the week as the stop loss or 9608 whichever is lower.

Top Fundamental Stocks

Absolute
Stocks Rec. Date CMP on Rec. CMP Target Return @ Status
CMP
Manappuram Finance 30/05/2017 87 92 130 6% Buy

Godrej Properties 12/05/2017 508 519 630 3% Accumulate

Tvs Motor 24/04/2017 485 556 630 15% Buy

DCB Bank 17/04/2017 175 203 310 16% Buy

REC Ltd 27/03/2017 175 188 240 7% Accumulate

Petronet 20/02/2017 400 434 490 9% Buy

Escorts 06/02/2017 383 750 790 96% Profit Book

Edelweiss financial 16/01/2015 117 203 235 74% Profit Book

IOC Ltd 27/02/2017 376 423 490 13% Accumulate
Marico 20/02/2016 255 315 370 24% Buy

Voltamp transformer 13/02/2017 980 1300 1360 33% Buy

Mothersumi 03/04/2017 376 475 495 26% Accumulate

Lic hsg Finc 27/03/2017 608 756 830 24% Accumulate

Asian Paints 10/03/2017 1030 1144 1260 11% Buy

Nbcc india 20/03/2017 175 200 225 14% Buy

Alembic Pharmaceuti-
30/08/2016 630 555 732 -12% Buy
cals

Wonderla 25/04/2016 387 369 498 -5% Buy

Infinite Computer Sol. 20/07/2015 190 208 255 9% Buy

Sadbhav Engineering
04/05/2015 298 313 430 5% Buy
Ltd.
M&M 12/01/2015 1238 1440 1450 16% Profit Book

If you buy the things you dont need, soon you need to sell the things you need.

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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 26-Apr-17 GODREJIND BUY 532 541 536.50 563.00 516 TA 4.6

2 27-Apr-17 ITC BUY 289 292 290.50 304.00 281 SL -3.6

3 2-May-17 GAIL BUY 420 425 422.50 441.00 408 EXPIRE .

4 3-May-17 ARVIND BUY 406 414 410.00 426.00 395 TA 4

5 4-May-17 ONGC BUY 188 192 190.00 202.00 181 SL -3.8

6 5-May-17 EXIDEIND BUY 235 240 237.50 251.00 228 TA 4.2

7 8-May-17 CADILAHC BUY 462 466 464.00 484.00 452 TA 4.2

8 9-May-17 INFY BUY 938 946 942.00 982.00 914 TA 4.2

9 10-May-17 GODREJIND BUY 562 572 567.00 594.00 546 TA 4.3

10 11-May-17 NIITECH BUY 523 532 527.50 554.00 507 TA 4.4

11 12-May-17 AMARAJABAT BUY 917 928 922.50 964.00 894 EXPIRE .
12 15-May-17 TVSMOTORS BUY 510 520 515.00 543.00 497 TA 4.3

13 16-May-17 GRASIM BUY 1166 1180 1173.00 1226.00 1134 SL -3.8

14 17-May-17 RAYMOND BUY 785 795 790.00 828.00 763 SL -3.6

15 18-May-17 PIDILITIND BUY 770 780 775.00 812.00 749 TA 4.2
16 19-May-17 WIPRO BUY 520 530 525.00 551.00 503 TA 4.4

17 22-May-17 MOTHERSUMI BUY 425 435 430.00 452.00 411 TA 4.1

18 23-May-17 ZEEL BUY 512 522 517.00 545.00 498 EXPIRE .

19 24-May-17 M&M BUY 1320 1335 1327.50 1387.00 1282 TA 4.2

20 25-May-17 MINDTREE BUY 508 514 511.00 536.00 492 TA 4.3
21 29-May-17 TATASTEEL BUY 507 514 510.50 535.00 491 OPEN .
HEROMO-
22 30-May-17 BUY 3650 3685 3667.50 3830.00 3544 TA 4.3
TOCO
23 31-May-17 GODREJIND BUY 608 614 611.00 638.00 589 TA 4.4
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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 1-Jun-17 IBULHSGFIN BUY 1140 1160 1150.00 1205.00 1108 OPEN .

25 2-Jun-17 M&M BUY 1420 1440 1430.00 1498.00 1378 OPEN .

26 5-Jun-17 ULTRACEMCO BUY 4200 4250 4225.00 4460.00 4070 OPEN .

27 6-Jun-17 MINDTREE BUY 550 558 554.00 580.00 534 OPEN .

28 7-Jun-17 KSCL BUY 644 653 648.50 678.00 624 OPEN .

29 8-Jun-17 HAVELLS BUY 502 512 507.00 534.00 488 OPEN .

30 9-Jun-17 SIEMENS BUY 1330 1344 1337.00 1396.00 1294 OPEN .

STATUS CALLS RATIO

TA+PB 15 78.95

SL+EXIT 04 21.05

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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