Vol.

: 347
03 JULY ,2017

Index

Market View 1
A HISTORIC DAY FOR INDIA
Company Update 2
At the midnight of 30th June, 2017 India adopted a new indirect tax system, called
Around the GST 2017, which paves the way for 1 nation 1 tax system. A long overdue and a
Economy 3 dream of every businessman, GST will definitely ease the doing of business in India. It
is true that there will be initial issues and problems, but the administration is confident
Knowledge Corner 3 to tackle the same. Government said that they are open to address all genuine issues
of business community.
Mutual Fund 4
It is a common opinion of one and all that being and efficient tax collection sys-
Commodity Corner 5
tem, GST will compel the tax evaders to fall within system. This will widen the tax col-
lection and eventually will decrease the GST rates.
Forex Corner 6

Report Card 7 It is important for investors to identify the sectors which are benefitted on account
of GST system. All organized players will see surge in their revenue & profits.
Short Term Call Status 8
Technically, any rise above 9550 / 9650 will be positive for market. Market is try-
ing to judge the initial reaction and impact of GST. Wait &Watch.

Special Contributors
Kunal Shah
Dhaval Ghodasara

For suggestions, feedback

and queries
jstreet@jhaveritrade.com
Kamal Jhaveri
MD- Jhaveri Securities

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Company Update : DEWAN HOUSING FINANCE LTD

Company Basics Financial Basics Share Holding Pattern
BSE Code 511072 FV (`) 10.0 Holder's Name % Holding
EPS (`) (TTM) 92.38 Promoter 39.29
NSE Symbol Dhfl P/E (x) (TTM) 13.84 Public 60.71

EQUITY (` in Cr.) 292 P/BV (x) (TTM) 1.84

MKT.CAP (` in Cr.) 14350

Outlook and valuation : We recommend BUY on the stock BUY rating for the stock and value DHFL at
SoTP valuations, with a t a r g e t p r i c e o f R s . 5 3 0 w i t h P / E o f 1 4 .

Company Overview :
Incorporated in Maharashtra in 1984 as Dewan Housing Finance & Leasing Co, the company was renamed as Dewan
Housing Development Finance in 1984, then after to Dewan Housing Finance Corporation (DHFC) with its registered office
in Bombay.

The company provides housing finance to individuals, co-operative societies, corporate bodies or their nominated employ-
ees, groups of persons, etc, and leases commercial and residential premises to reputed companies.

Investment rationale for Dewan Housing Finance Ltd

DEWH continues to capitalize on its mortgage lending expertize in an Under penetrated market. Its focus on being a core
mortgage finance player is demonstrated by the fact that it is divesting non-core assets such as the life insurance busi-
ness.
The government focus on affordable housing segment and the concept of housing for all.
The decreasing rate of interest on housing loans is also providing a good support to housing companies.
DHFL is bound to be a key beneficiary of governments initiative to promote affordable housing given its presence in tier
II/III cities and lower ticket size.
Its gradual transformation to a core mortgage player with strong growth and healthy return ratios
Asset quality continues to remain robust

Asset quality continues to show strong resilience as Gross non-performing asset (NPA) ratio declined marginally by 1 bp
QoQ to 0.9%. Gross NPA ratio of DHFL have been consistently below ~1% over the last seven years.
Strong growth of AUM of 20% (yoy) and NII at the reate of 22%.

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Around The World

Weekly Market Recap :
The implementation of GST across the country between the night of June 30 and July 1. Meanwhile, the India Meteorological
Department (IMD) in its weekly weather report yesterday, 29 June 2017 said that during the week from 22nd June to 28th
June 2017, the all India actual rainfall stood at 48.6 mm as against normal rainfall of 51.1 mm, with a departure of minus 5%.

In Europe, the European Central Bank (ECB) chief Mario Draghi gave an upbeat view of the euro zone economy on Tues-
day, 27 June 2017, but still urged the need for monetary policy to become accommodative. In Asia, China's manufacturing
PMI rose to 51.7 in June, from 51.2 in May. Levels above 50 indicate expansion, while levels below signal contraction.

Market Eye Week ahead :

Markit Economics will unveil the result of a monthly survey on the performance of India's services sector in June 2017 at
10:30 IST on Wednesday, 5 July 2017. Markit Economics will unveil the result of a monthly survey on the performance of In-
dia's manufacturing sector in June 2017 at 10:30 IST on Monday, 3 July 2017. Aviation stocks will also be in focus as public
sector oil marketing companies (PSU OMCs) will revise jet fuel prices towards the closing of this month.

On the global front, Germany Manufacturing Purchasing Managers Index (PMI) data and UK Manufacturing PMI data for
June 2017 will be unveiled on Monday, 3 July 2017. US ADP nonfarm employment change data for June 2017 will be un-
veiled on Thursday, 6 July 2017. US ISM Manufacturing PMI data for June 2017 will also be unveiled on Monday, 3 July
2017.

Key Events / Factors to Watch

1. Mon : Bonus : Petronet LNG
2. Tue : AGM: Sterlite Techno
3. Wed : Bonus: Motherson,
4. Thu: Dividends: Bajaj auto, Bajaj Finserv, Cyient
5. Fri : Dividend: Ipru, Tata Global

Knowledge Corner :
DIVIDEND
A dividend is a distribution of a portion of a company's earnings, to a class of its shareholders. Dividends can be sued as
cash payments, as shares of stock, or other property.

Why it is important?

Many investors rely on dividend payments as a source of income.Even if share prices of your stocks increase over time, you
will be unable to realize these capital gains until you sell your shares. It is also important whether the promoter share a part of
its profit with the shareholders or not.

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Mutual Fund Corner

Top 10 Sector Break-Ups
Fund Name
Scheme Name Reliance Midcap and Small Cap Fund
Sector Weights Fund (%)
Financial 18.15
AMC Reliance Nippon Life Asset Management Co Ltd
Energy 5.43
Type Open Ended & Equity Mid Cap Automobile 5.85
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 : BUY GOLD @ 28500 SL 28200 TGT 28950-29200 BUY SILVER @38000 SL 37400 TGT 38560-39200

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 : BUY ALUMINIUM @ 120 SL 118 TGT 122.5-124 BUY COPPER @ 370 SL 362 TGT 378-386 BUY ZINC @ 171 SL 166
TGT 178-184 BUY NICKEL @ 575 SL 560 TGT 595-610.

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 @ 32850 SL 2950 TGT 2700 BUY NAT.GAS @ 184 SL 180 TGT 190-198.

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Commodity Corner
Forex Corner
Market Recap :

The Indian rupee on Monday weakened against

the US dollar tracking losses in its Asian peers.

The 10-year bond yield was at 6.586%, compared

to its previous close of 6.511%. Bond yields and
prices move in opposite directions.

The dollar index, which measures the US cur-

rencys strength against major currencies, was
trading at 95.962, up 0.35% from its previous
close of 95.628.

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 64.90-64.70 with SL of 65.21 for target of
63.72-63.28.

USD/INR
Level S2 S1 CP R1 R2 High Low Close
USD/INR 63.71 63.26 64.66 65.21 65.61 65.05 64.10 64.82

EUR/INR
Level S2 S1 CP R1 R2 High Low Close
EUR/INR 71.22 72.62 73.50 74.90 75.78 74.39 72.11 74.01

GBP/INR
Level S2 S1 CP R1 R2 High Low Close
GBP/INR 80.93 82.53 83.60 85.20 86.27 84.67 82.00 84.13

JPY/INR
Level S2 S1 CP R1 R2 High Low Close
JPY/INR 57.09 57.51 57.82 58.24 58.55 58.14 57.41 57.92

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J Street Recommendations Report Card

Nifty last week opened at 9594.05, attained a high at 9615.40 and fell to a low of 9448.75. Nifty finally closed the week at 9520.90
thereby showed a net fall of 0.56% on week to week basis. Correction is being witnessed and further correction will continue on fall and
close below 9448.Resistance will be at 9607-9695-9710.Traders short and holding the same can maintain the stop loss of 9710.Further
rally is above 9710 closing. Traders long and holding the same can use rise to resistance to exit long and take profits. Re-enter long
on rise and close above 9710.Lower range for the week can be 9441-9361-9274.
Top Fundamental Stocks
Absolute
Stocks Rec. Date CMP on Rec. CMP Target Return @ Status
CMP
DHFL Ltd 27/06/2017 430 444 530 3% Buy

Manappuram Finance 30/05/2017 87 98 130 13% Accumulate

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

Tvs Motor 24/04/2017 485 550 630 13% Buy

DCB Bank 17/04/2017 175 195 310 11% Accumulate

REC Ltd 27/03/2017 175 172 240 -2% Buy

Petronet 20/02/2017 200 215 490 8% Buy

Escorts 06/02/2017 383 670 790 63% Buy

Edelweiss financial 16/01/2015 117 190 235 62% Accumulate
IOC Ltd 27/02/2017 376 386 490 3% Buy

Marico 20/02/2016 255 316 370 24% Buy

Voltamp transformer 13/02/2017 980 1274 1360 30% Buy

Mothersumi 03/04/2017 376 462 495 23% Accumulate

Lic hsg Finc 27/03/2017 608 742 830 22% Buy

Asian Paints 10/03/2017 1030 1106 1260 7% Buy

Nbcc india 20/03/2017 175 208 225 19% Buy

Alembic Pharmaceuti-
30/08/2016 630 526 732 -17% Buy
cals
Wonderla 25/04/2016 387 355 498 -8% Buy
Sadbhav Engineering
04/05/2015 298 312 430 5% Buy
Ltd.
M&M 12/01/2015 1238 1372 1450 11% 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 17-May-17 RAYMOND BUY 785 795 790.00 828.00 763 SL -3.6

2 18-May-17 PIDILITIND BUY 770 780 775.00 812.00 749 TA 4.2

3 19-May-17 WIPRO BUY 520 530 525.00 551.00 503 TA 4.4

4 22-May-17 MOTHERSUMI BUY 425 435 430.00 452.00 411 TA 4.1

5 23-May-17 ZEEL BUY 512 522 517.00 545.00 498 EXPIRE .

6 24-May-17 M&M BUY 1320 1335 1327.50 1387.00 1282 TA 4.2

7 25-May-17 MINDTREE BUY 508 514 511.00 536.00 492 TA 4.3

8 29-May-17 TATASTEEL BUY 507 514 510.50 535.00 491 TA 4.2

HEROMO-
9 30-May-17 BUY 3650 3685 3667.50 3830.00 3544 TA 4.3
TOCO
10 31-May-17 GODREJIND BUY 608 614 611.00 638.00 589 TA 4.4
11 1-Jun-17 IBULHSGFIN BUY 1140 1160 1150.00 1205.00 1108 SL -3.8
12 2-Jun-17 M&M BUY 1420 1440 1430.00 1498.00 1378 EXPIRE .

13 5-Jun-17 ULTRACEMCO BUY 4200 4250 4225.00 4460.00 4070 SL -3.9

14 6-Jun-17 MINDTREE BUY 550 558 554.00 580.00 534 SL -3.8

15 7-Jun-17 KSCL BUY 644 653 648.50 678.00 624 TA 4.4
16 8-Jun-17 HAVELLS BUY 502 512 507.00 534.00 488 SL -3.8

17 9-Jun-17 SIEMENS BUY 1330 1344 1337.00 1396.00 1294 TA 4.2

18 12-Jun-17 LICHSGFIN BUY 756 764 760.00 792.00 738 TA 4.4

19 13-Jun-17 PEL BUY 3040 3080 3060.00 3200.00 2950 SL -3.7

20 14-Jun-17 DHFL BUY 435 442 438.50 459.00 422 TA 4.2
21 15-Jun-17 GODREJIND BUY 640 648 644.00 676.00 620 EXPIRE .

22 16-Jun-17 BAJFINANCE BUY 1395 1415 1405.00 1472.00 1358 OPEN

23 19-Jun-17 INDIACEM BUY 217 222 219.50 232.00 211 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 20-Jun-17 J&KBANK BUY 92 95 93.50 103.00 88 OPEN

25 21-Jun-17 DHFL BUY 454 462 458.00 480.00 441 OPEN

26 22-Jun-17 ICIL BUY 183 186 184.50 194.00 178 OPEN

27 23-Jun-17 SIEMENS BUY 1346 1365 1355.50 1421.00 1307 OPEN

28 27-Jun-17 PIDILITIND BUY 825 836 830.50 868.00 803 OPEN

29 28-Jun-17 GRASIM BUY 1210 1222 1216.00 1280.00 1176 OPEN

30 29-Jun-17 AMBUJACEM BUY 243 248 245.50 258.00 237 OPEN

STATUS CALLS RATIO

TA+PB 12 63.15

SL+EXIT 07 36.85

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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