Escolar Documentos
Profissional Documentos
Cultura Documentos
: 358
09 OCT ,2017
Index
Market View 1
MARKET VIEW
Company Update 2
M ARKET HAS FOUND SUPPORT NE AR 970 0
Around the
Economy 3 As we have discussed last time, certain macro level concerns
have arise in last couple of months. Due to this and high valuations of
Knowledge Corner 3
Indian stocks FIIs have started liquidating Indian stocks and investing in
Mutual Fund 4 cheap peer markets. Only earning recovery and capex in private sector
can resolve many macro issues. The result of second quarter will be re-
Commodity Corner 5
leased shortly and will be of much importance from the view point of the
Forex Corner 6 market. Present Government seems to be responsive and flexible. The
practical problems being faced by the business community are ad-
Report Card 7
dressed by GST council and many suggestions are being incorporated in
Short Term Call Status 8 GST. Some fund houses and analysts are expecting gradual earning re-
covery from this quarter. Under the circumstances it is extremely neces-
sary to remain stock specific in the market. The Government seems to
have taken the cognizance of the growing macro concern and is trying to
Special Contributors resolve the same with necessary steps.
Kunal Shah
Dhaval Ghodasara
Technically the rise and close above 9950 is a positive signal and
any sustainable rise above 9990 is positive for the market. There is
cluster of supports at 9940-9875-9700. On positive side, the resistances
are at 10100-10200 range. The sustainability of the market largely de-
pend on the economic data.
Kamal Jhaveri
MD- Jhaveri Securities
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Outlook and valuation : We recommend BUY on the stock and value KEC at 1 8 x F Y 1 9 E E P S with a
target price of Rs.384 with P/E of 21.
Company Overview :
KEC was incorporated in 1945 as Kamani Engineering Corporation by the RPG Group. It designs and manu-
factures power transmission towers and telecom infrastructure. Nearly 55-60% revenue comes from the interna-
tional market. The company's order backlog at FY17 end was ~INR126bn, with ~80% contributed by transmis-
sion projects (including SAE Tower ON and substations) and ~20% in new businesses like railways, cables &
water.
Investment rationale for KEC INTERNATIONAL LTD
Strong 20% EPS growth over the next 2 years with stable margins of 9.5% .
With strong impetus on T&D spend by select states and PGCIL, the bid pipeline for KEC remains healthy at
INR120bnn over the next 2-3 quarters.
Moving up the scale, the company is targeting higher ticket projects in the railways EPC, Solar and civil infra
space, which could help company achieve higher growth rate.
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09 OCT ,2017
The Nikkei India Manufacturing Purchasing Managers' Index, or PMI, stood at 51.2 in September, remaining un-
changed from August. The Reserve Bank of India (RBI) kept the policy repo rate under the liquidity adjustment fa-
cility (LAF) unchanged at 6%.Consequently, the reverse repo rate under the LAF remains at 5.75%, and the mar-
ginal standing facility (MSF) rate and the bank rate at 6.25%.
Indian Energy Exchange is coming up with an initial public offer the IPO opens on Monday, 9 October 2017 and
closes on Wednesday, 11 October 2017. On the macro front, on Thursday, 12 October 2017, the government will
announce industrial production data for August The government will also announce after market hours on Thurs-
day, 12 October 2017, inflation data based on consumer price index (CPI) for September 2017.
On the global front, US markets remain closed on Monday, 9 October 2017, on account of holiday for Columbus
Day. The Federal Open Market Committee will issue minutes of its last meet on Wednesday, 11 October 2017. US
retail sales for October will be announced on Friday, 13 October 2017.
Knowledge Corner :
BUY BACK
A buyback is repurchase of shares, means company purchase their own shares from market which in turn reduces
the open share in market.
Why it is important?
By reducing the number of shares outstanding on the market, buybacks increase the proportion of shares owned by enduring inves-
tors. A buyback also boosts the proportional share of earnings a share is allocated.A company may feel its shares are undervalued
and buy them back to provide investors with a return.
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09 OCT ,2017
Medium
Small
Fund
Nifty 500
(Rebased to 10,000) Source : - www.valueresearchonline.com
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09 OCT ,2017
Commodity Corner
BULLION
FUNDAMENTAL: Bullion prices ended with around one and half percent gains as the U.S. dollar dropped and weak eco-
nomic data lowered expectations of a December interest rate rise in the United States. The U.S. dollar hit a more than
2-1/2-year low on reduced expectations for another Federal Reserve rate increase this year, while the euro hit multi-
year highs after European Central Bank President Mario Draghi suggested that the ECB might begin tapering its mas-
sive stimulus program this fall. Also supporting the prices were fears that geopolitical uncertainty is poised to in-
crease over the weekend as North Korea may launch another missile on Saturday to celebrate its 69th anniversary of
the founding of the Democratic Peoples Republic of Korea.
RECOMMENDATION : BUY GOLD @ 29600 SL 29300 TGT 30100-400 BUY SILVER @39850 SL 39000 TGT 40600-41200
BASE METALS
FUNDAMENTAL : In the week, base metals prices dropped after data out of China revealed that exports showed
signs of softening in August. Chinas dollar-denominated trade surplus with the rest of the world weakened unex-
pectedly last month, as imports grew at more than double the rate of exports. Copper prices dropped 2.46 percent
on weekly basis after customs data from China, showed import volumes remained flat for the fourth month in a
row. Chinese imports of refined copper totaled 390,000 tonnes in August, levels unchanged since May. While
imports were up 11% from August last year, cargoes remain down nearly 13% over the first eight months of 2017
to just over 3m tonnes compared to the same period in 2016.
RECOMMENDATION : BUY ALUMINIUM @ 138 SL 134 TGT 143-47 BUY COPPER @ 433 SL 425 TGT 444-454 BUY ZINC @ 212 SL 208
TGT 218 BUY NICKEL @ 690 SL 670 TGT 710-30.
ENERGY
FUNDAMENTAL Last week, crude oil prices ended with gains as U.S. crude production was hit harder by Hurricane
:
Harvey than expected, with even bigger storm Irma heading for Florida and threatening to cause more disruption
to the petroleum industry. . U.S. oil output fell by almost 8 percent, from 9.5 million barrels per day (bpd) to 8.8
million bpd, according to the Energy Information Administration (EIA). Port and refinery closures along the Gulf
coast and harsh sea conditions in the Caribbean have also impacted shipping. Traders said it would take weeks
for the U.S. petroleum industry to return to full capacity, and that under the current conditions it was difficult to
identify fundamental market trends.
RECOMMENDATION : SELL CRUDE @ 3260 SL 3380 TGT 3180-3100 SELL NAT.GAS @ 195 SL 202 TGT 188-182.
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Commodity Corner
Forex Corner
Market Recap :
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 66.20-66.00 with SL of 67.03 for target of
65.02-64.68.
USD/INR
Level S2 S1 CP R1 R2 High Low Close
USD/INR 64.64 65.02 65.33 65.70 66.01 65.41 65.27 65.36
EUR/INR
Level S2 S1 CP R1 R2 High Low Close
EUR/INR 75.74 76.24 76.71 77.21 77.68 77.28 77.40 77.30
GBP/INR
Level S2 S1 CP R1 R2 High Low Close
GBP/INR 83.70 84.57 86.06 86.93 88.93 86.80 85.90 86.06
JPY/INR
Level S2 S1 CP R1 R2 High Low Close
JPY/INR 57.32 57.70 57.97 58.35 58.62 58.40 57.90 58.60
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A stock market is a place where people know the price of everything , but the value of Nothing.
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TA+PB 13 65.00
SL+EXIT 07 35.00
TOTAL 20 100.00
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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