Vol.

: 349
17 JULY ,2017

Index

Market View 1
INDIA IS ONE OF THE HIGHEST RATED INVESTMENT DESTINATION
Company Update 2
The Chief Executive Officer of Ernst & Young Mr. Mark Weinberger said in an
Around the interview that today India is one of the highest rated investment destination in the
Economy 3 world. It has got 7% growth rate, stable Government, good macroeconomic indicators

Knowledge Corner 3 like low inflation and deficit under control. The most important is massive reforms
aimed at the right direction. In other emerging markets the factors like swing in com-
Mutual Fund 4
modity prices affect the fundamentals. Countries like Venezuela, Brazil and Russia are
Commodity Corner 5 running through difficulties. There are difficult decisions to be made in the world but
when you look at where to put money, India constantly comes out as a safe bets right
Forex Corner 6
now. These are the words and opinion of Ernst & Young. India has really improved in
Report Card 7 opening more sectors to foreign investors. Inviting foreign investors to invest in Insur-

Short Term Call Status 8 ance, Defense, Rail, Roads and retail is a big positive.

Special Contributors
Kunal Shah
Dhaval Ghodasara
Last week the inflation data has really boosted the market sentiment in expecta-
tion of a rate cut by RBI in the month of August. The business sentiment of top execu-
tives is also rising in view of the GST implementation. Under the circumstances the
market is buying on dip market and any meaningful correction will throw an invest-
ment opportunity. Here it is very important to note that the retail investors are shifting
their financial assets to equity from the instruments like Bank FDs, Gold and Real Es-
tate. The number of Demat Accounts is close to 3 Crores which has tremendous po-
tential for growth. Technically sustainable rise beyond 9800 will take the Nifty to 10240
with sound support at 9780-9650-9580-9480.

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 Consumer Price Index (CPI) slowed to 1.54% in June from 2.18% in May. The Index of Industrial Production (IIP) rose
1.7% in May compared with 3.1% in April. he Sensex and the Nifty, both, hit record high on intraday as well as closing basis.
Broader market, however, witnessed selling pressure. State bank's executive committee gave final approval for divestment
of 8 crore shares in SBI Life through an initial public offering (IPO).

Global stock markets also provided some tailwind after US Federal Reserve chair Janet Yellen, in a House testimony, sig-
nalled that the approach to higher rates will be steady, prompting investors to buy more in risky emerging markets.

Market Eye Week ahead :

Among prominent companies, ACC and Jubilant FoodWorks will announce April-June 2017 results on Monday, 17 July 2017.
CRISIL and Ultratech Cement will announce April-June 2017 results on Tuesday, 18 July 2017. Wipro, Bajaj Auto, Kotak
Mahindra Bank and RBL Bank will announce April-June 2017 results on Thursday, 20 July 2017.

Overseas, China will unveil GDP data for second quarter on Sunday, 16 July 2017. Eurozone Consumer Price Index (CPI)
data for June will be declared on Monday, 17 July 2017.

Key Events / Factors to Watch

1. Mon : Bonus : ACC, Jubilant food, Linde
2. Tue : Result: HUL, UltratecH Cement, Crisil
3. Wed : Result: Bajaj Fin, Bajaj Finserv, Can Bank, Havells
4. Thu: Result: ABB, Bajaj Auto, RBL Bank, wipro Ltd.
5. Fri : Result : Can Fin Homes, DHFL, Ashok Leyland.

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 ICICI Prudential Top 100 Fund
Sector Weights Fund (%)
Financial 22.05
AMC ICICIPru Asset Management Company Ltd
Energy 14.86
Type Open Ended & Equity Multi Cap Automobile 6.82
Healthcare 6.08
Category Open-ended
FMCG 7.69
Launch Date July 1998 Services 5.57
Technology 8.92
Fund Manager Sankaren Naren & Ihab Dalwani
Communication 7.03
Net Assets (` Metals 6.59
Rs. 2251.3 cr as on May 31, 2017
In crore )
Chemicals 4.35
History 2014 2015 2016 2017 Risk Analysis
Volatility Measures
NAV (Rs) 235.69 234.18 258.22 300.93
Standard Deviation 12.88
Total Return (%) 38.29 -0.64 10.27 16.54 Sharpe Ratio 0.54
Beta 0.92
Rank (Fund/Category) 50/147 132/173 17/143 113/127
R-Squared 0.87
Alpha 3.54
52 Week High (Rs) 243.90 254.27 272.67 304.69

52 Week Low (Rs) 162.69 211.23 204.22 259.51 Composition (%)

Equity 95.33
Net Assets (Rs.Cr) 1372.05 1338.88 1487.73 2258.11 Debt 5.59

Expense Ratio (%) 2.52 2.32 2.50 - Cash -0.92

Fund Performance v/s Nifty 50 Fund Style

Investment Style
Growth Blend Value
Large
Capitalization

Medium

Small

Fund
Nifty 50
(Rebased to 10,000) Source : - www.valueresearchonline.com

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Commodity Corner

BULLION
FUNDAMENTAL: Last week, bullion prices ended with losses where Silver prices dropped by 6.58 percent and gold dropped
by 2.30 percent after stronger than expected United States jobs data increased the likelihood of another U.S. interest rate
increase and the dollar rose. The latest batch of mostly upbeat jobs data, fuelled expectations that the Fed would continue
with its plan to hike rates later this year, spurring an uptick in both the dollar and bond yields while decreasing demand for
the precious metal.Minutes of the Federal Reserves June meeting showed a lack of consensus among policymakers over
the outlook for inflation and how it could impact the future pace of interest rate increases. The Bureau of Labor Statistics re-
ported, nonfarm payrolls grew by 222,000 in June, well above expectations of a 179000 increase, but the unemployment
rate fell to 4.4%, a notch above forecasts of 4.3%.

RECOMMENDATION : SELL GOLD @ 27950 SL 28250 TGT 27400 SELL SILVER @36500 SL 36950 TGT 35000

BASE METALS

FUNDAMENTAL : Base metals prices ended with mixed node as prices seen some pressure on Friday as the dollar gained
after a report showed the U.S. economy created far more jobs than expected in June and the previous months. The mood in
Chinese markets has been cautious ahead of a raft of data expected to show steady growth, although government meas-
ures to rein in the housing market and debt risks are likely to drag on activity in the next few quarters. Copper prices
dropped as the dollar gained, keeping the Federal Reserve on track to raise interest rates at least once this year. Chiles
Antofagasta Minerals said it was facing potential strikes at two mines.

RECOMMENDATION : SELL ALUMINIUM @ 125 SL 127 TGT 122 SELL COPPER @ 382 SL 388 TGT 370 SELL ZINC @ 183 SL 189 TGT
176-172 SELL NICKEL @ 590 SL 600 TGT 570.

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 @ 2900 SL 2980 TGT 2780-2700 SELL NAT.GAS @ 190 SL 196 TGT 180.

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Commodity Corner
Forex Corner
Market Recap :

The Indian rupee on Monday strengthened

against the US dollar, tracking gains in the local
equity and Asian currencies markets. .

The 10-year bond yield was at 6.457%, compared

to its previous close of 6.456%. Bond yields and
prices move in opposite directions.

The dollar index, which measures the US cur-

rencys strength against major currencies, was
trading at 95.21, up 0.06% from its previous close
of 95.153.

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 65-64.80 with SL of 65.60 for target of
64.28-64.20.

USD/INR
Level S2 S1 CP R1 R2 High Low Close
USD/INR 64.28 64.42 64.58 64.72 64.88 64.75 64.45 64.55

EUR/INR
Level S2 S1 CP R1 R2 High Low Close
EUR/INR 72.96 73.33 73.84 74.21 74.72 74.34 73.46 73.71

GBP/INR
Level S2 S1 CP R1 R2 High Low Close
GBP/INR 82.18 82.57 83.51 84.12 84.45 83.84 82.90 83.79

JPY/INR
Level S2 S1 CP R1 R2 High Low Close
JPY/INR 57.36 57.64 56.95 57.36 57.64 57.23 56.54 57.08

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J Street Recommendations Report Card

NIFTY last week opened at 9719.30, attained a low at 9646.45 and moved up to 9913.30. Nifty finally closed the
week at 9886.35 thereby showed a net rise of 2.28%. Weaker opening and correction first to 9815-9717 can be used
for buying with a stop loss of 9600.Expect higher range for the week can be 9984-10082-10251. Higher levels of
can be used to take profits.
Top Fundamental Stocks
Absolute
Stocks Rec. Date CMP on Rec. CMP Target Return @ Status
CMP
DHFL Ltd 27/06/2017 430 446 530 4% Buy

Manappuram Finance 30/05/2017 87 102 130 17% Accumulate

Godrej Properties 12/05/2017 508 517 630 3% Buy

Tvs Motor 24/04/2017 485 575 630 19% Buy

DCB Bank 17/04/2017 175 201 310 15% Accumulate

REC Ltd 27/03/2017 175 187 240 7% Buy

Petronet 20/02/2017 200 208 490 4% Buy

Escorts 06/02/2017 383 674 790 64% Buy

Edelweiss financial 16/01/2017 117 197 235 68% Accumulate
IOC Ltd 27/02/2017 376 374 490 -1% Buy

Marico 20/02/2017 255 325 370 27% Buy

Voltamp transformer 13/02/2017 980 1280 1360 31% Buy

Mothersumi 03/04/2017 300 319 495 -15% Accumulate

Lic hsg Finc 27/03/2017 608 738 830 21% Buy

Asian Paints 10/03/2017 1030 1200 1260 17% Buy

Nbcc india 20/03/2017 175 212 225 21% Buy

Alembic Pharmaceuti-
30/08/2016 630 541 732 -14% Buy
cals
Wonderla 25/04/2016 387 357 498 -8% Buy
Sadbhav Engineering
04/05/2015 298 290 430 -3% Buy
Ltd.
M&M 12/01/2015 1238 1400 1450 13% Profit Book

On Investment, Never test the depth of the river with both the feet.

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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 1-Jun-17 IBULHSGFIN BUY 1140 1160 1150.00 1205.00 1108 SL -3.8

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

3 5-Jun-17 ULTRACEMCO BUY 4200 4250 4225.00 4460.00 4070 SL -3.9

4 6-Jun-17 MINDTREE BUY 550 558 554.00 580.00 534 SL -3.8

5 7-Jun-17 KSCL BUY 644 653 648.50 678.00 624 TA 4.4

6 8-Jun-17 HAVELLS BUY 502 512 507.00 534.00 488 SL -3.8

7 9-Jun-17 SIEMENS BUY 1330 1344 1337.00 1396.00 1294 TA 4.2

8 12-Jun-17 LICHSGFIN BUY 756 764 760.00 792.00 738 TA 4.4

9 13-Jun-17 PEL BUY 3040 3080 3060.00 3200.00 2950 SL -3.7

10 14-Jun-17 DHFL BUY 435 442 438.50 459.00 422 TA 4.2

11 15-Jun-17 GODREJIND BUY 640 648 644.00 676.00 620 TA 4.4
12 16-Jun-17 BAJFINANCE BUY 1395 1415 1405.00 1472.00 1358 TA 4.4

13 19-Jun-17 INDIACEM BUY 217 222 219.50 232.00 211 EXPIRE .

14 20-Jun-17 J&KBANK BUY 92 95 93.50 103.00 88 SL -3.8

15 21-Jun-17 DHFL BUY 454 462 458.00 480.00 441 TA 4.2
16 22-Jun-17 ICIL BUY 183 186 184.50 194.00 178 SL -3.6

17 23-Jun-17 SIEMENS BUY 1346 1365 1355.50 1421.00 1307 EXPIRE .

18 27-Jun-17 PIDILITIND BUY 825 836 830.50 868.00 803 SL -3.6

19 28-Jun-17 GRASIM BUY 1210 1222 1216.00 1280.00 1176 TA 4.8

20 29-Jun-17 AMBUJACEM BUY 243 248 245.50 258.00 237 TA 4.4
21 3-Jul-17 TVSMOTOTRS BUY 542 550 546.00 571.00 529 TA 4.6

22 4-Jul-17 SRTRANSFIN BUY 1020 1035 1027.50 1080.00 990 TA 4.8

23 5-Jul-17 DABUR BUY 292 296 294.00 309.00 284 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 6-Jul-17 BHARATFIN BUY 738 749 743.50 781.00 718 TA 4.6

25 7-Jul-17 CENTURYTEX BUY 1120 1135 1127.50 1178.00 1090 TA 4.4

26 10-Jul-17 ASHOKLEY BUY 103 105 104.00 110.00 100 OPEN

27 11-Jul-17 GODREJIND BUY 662 674 668.00 700.00 646 OPEN

28 12-Jul-17 POWERGRID BUY 210 214 212.00 223.00 205 OPEN

29 13-Jul-17 IOC BUY 388 393 390.50 408.00 377 OPEN

30 14-Jul-17 VOLTAS BUY 480 490 485.00 512.00 468 OPEN

STATUS CALLS RATIO

TA+PB 14 63.63

SL+EXIT 08 36.36

TOTAL 21 100.00

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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