Vol.

: 229
03 Sep ,2019

Index

Market View 1
MARKET VIEW
Company Update 2
GOVERNMENT HAS ANNOUNCED ANOTHER SET OF REFORMS
Around the
Economy 3
3 SEP 2019

Knowledge Corner 3
The market cheered the recommendations of Jalan committee, which was accepted by RBI
Mutual Fund 4 and consequent transfer of Rs. 1.78 Lakhs Crore to the Government by RBI. Government has
also announced big mergers of PSU banks today which is a historic one. It will go a long way
in transforming Indian Banking Sector and will make it more healthy.
Commodity Corner 5
Today Q1 GDP data is also announced which has slowed down to 5%, suggesting significant
Forex Corner 6 slow down in the Economy. International factors are behaving in sea saw manner, affecting
the market sentiment and increasing the volatility. The hopes of revival in US China Trade talk
Report Card 7 boost the sentiment on one day and any adverse statement on the same mars the sentiment
on another day.
Short Term Call Status 8
Under the circumstances, it is of utmost importance to remain selective and highly cautious in
the market as local and Global factors can spoil the sentiment any time. Any short term view is
not advisable, invest with long term view only. Technically, Any rise above 11200 / 11260 may
take it to higher levels with strong support at 10600.
Special Contributors
Sachin Valand Kamal Jhaveri
Dhaval Ghodasara MD- Jhaveri Securities

For suggestions, feedback

and queries
jstreet@jhaveritrade.com

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03 Sep ,2019

Company Update : JUBILANT FOODWORKS LTD.

Company Basics Financial Basics Share Holding Pattern

BSE Code 533155 FV (`) 10.00 Holder's Name % Holding
EPS (`) (TTM) 24.47 Promoter 42
NSE Symbol JUBLFOOD Public 58
P/E (x) (TTM) 47.80
EQUITY (` in Cr.) 13.20 CR CMP : 1180
P/BV (x) (TTM) 11.66
MKT.CAP (` in Cr.) 15434.44

Outlook and valuation : We recommend BUY on the stock and value Jubilant foodworks ltd at 4 6 x F Y 2 1 E
E P S with a t a rg e t p ri ce of R s 1 5 7 0 .

Company Overview :
Jubilant FoodWorks is a food service company. The Company operates through Food and Beverages segment. The
Company and its subsidiary have rights to develop and operate Domino's Pizza brand in India, Sri Lanka, Bangla-
desh and Nepal.

Investment Rationale for JUBILANT FOOD WORKS LTD.

 Revenue miss was on account of slower SSG of 4.1% (26% in 1QFY19)

 Higher A&P spends to drive growth in digital assets led to margin pressure in 1QFY20.

 Price hike of 3.5% should support margin expansion in the near term.

 Domino’s 22 stores were added (net) during the quarter, JFL entered in 3 new cities during the quarter, Dunkin Donuts’
closed one store (net) to 30 stores.

 There is a significant bump up in online ordering (OLO) particularly from mobile handsets.

 Dominos relaunched their app in 1QFY19 with added features like advanced ordering (upto 1 month) and 1 click re-
order.

 We model ~6-8% SSG over FY20/FY21. Underlying SSG will be healthier by 1-1.5%.

 GM expansion, splitting stores, investment in tech (labor efficiencies and higher marketing ROI) drives our adj. EBITDAM
expansion by 140bps over FY19-21E.

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Around The World

Weekly Market Recap :
On Monday, 26 August 2019, the key equity barometers posted robust gains in a highly volatile session. Buying was broad
based with financial stocks making the biggest moves. The 30-share Sensex rose 792.96 points or 2.16% to 37,494.12. The
Nifty 50 index jumped 228.50 points or 2.11% to 11,057.85.

On the macro front, India's Q2 gross domestic product (GDP) growth data will be released after market hours on Friday, 30
August 2019. The Indian economy advanced 5.8% year-on-year in the first quarter of 2019, slowing from a 6.6% expansion in
the previous period.

Market Eye Week ahead :

Domestic and global macroeconomic data will be closely watched in the truncated trading week ahead. Besides, global cues,
progress of monsoon, movement of rupee against the dollar, Brent crude oil price movement and investments by foreign port-
folio investors (FPI) and domestic institutional investor…

India's infrastructure output data for July will be unveiled after market hours on Friday, 30 August 2019. India's infrastructure
output grew 0.2% from a year earlier in June 2019.

Key Events / Factors to Watch :

1. Mon : -
2. Tue : Dividends : Swan Energy Ltd ,TVS Srichakra Ltd
3. Wed : Dividends: Caplin Point Laboratories Ltd ,Centrum Capital Ltd ,India Cements Ltd ,T.V. Today Network Ltd
4. Thu: Dividends : India Tourism Development Corporation Ltd ,Finolex Cables Ltd
5. Fri: AGM : MOIL Ltd ,NCC Ltd

Knowledge Corner :
.RSI

The Relative Strength Index (RSI), developed by J. Welles Wilder, is a momentum oscillator that measures the speed and change of
price movements. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold
when below 30.

Why it is important?
Traditionally the RSIis considered overbought when above 70 and oversold when below 30. The RSI is often used in conjunction with
trend lines, as trend line support or resistance often coincides with support or resistance levels in the RSI reading.

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Mutual Fund Corner

Top 10 Sector Break-Ups
Fund Name
Scheme Name Axis long term equity fund
Sector Weights Fund (%)
Financial 39.52
AMC Axis mutual fund
Construction 2.28
Type Tax saver fund Automobile 15.36
Energy 3.52
Category ELSS
IT 7.88
Launch Date Dec 29, 2009 Services 7.23
Con.Durable 5.88
Fund Manager Mr Jinesh Gopani (CIO axis mutual fund )
FMCG 1.79
Net Assets Chemicals 7.84
17852 cr
( In crore )

History 2016 2017 2018 2019 Risk Analysis

Volatility Measures
NAV (Rs) 30.40 41.78 42.90 41.24
Standard Deviation 14.62
Total Return (%) -0.69 37.44 2.65 -3.86 Sharpe Ratio 0.41
Beta 0.91
Rank (Fund/Category) 72/77 20/36 - 35/35
R-Squared 0.89
Alpha 0.16
52 Week High (Rs) 33.86 41.78 46.51 -

52 Week Low (Rs) 27.01 30.35 38.56 - Composition (%)

Equity 95.12
Net Assets (Rs.Cr) 10509.09 15324.53 16973.29 - Debt 5.14

Expense Ratio (%) 2.50 2.50 2.17 - Cash -0.15

Fund Performance v/s Nifty 50 Fund Style

Investment Style
Growth Blend Value
Large
Capitalization

Medium

Small

—– Fund
—– Nifty 500
(Rebased to 10,000) Source : - www.valueresearchonline.com

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Commodity Corner

BULLION
FUNDAMENTAL:

Bullion gained buoyed by safe-haven demand, as the United States and China launching tit-for-tat tariffs on each other’s goods
escalated a prolonged trade war and added to fears of a global economic slowdown. Washington began imposing 15% tariffs on a vari-
ety of Chinese goods, as Beijing began imposing new duties on U.S. crude.
RECOMMENDATION : BUY GOLD @ 38750 SL 38500 TGT 39100-39400. BUY SILVER @ 47600 SL 47000 TGT 48400-49000.

FUNDAMENTAL : BASE METALS

Nickel prices rallied due to worries about shortages as top producer Indonesia said it would stop ore exports from January
2020, two years earlier than initially flagged. Prices were also remained supported as a waste spill at a nickel plant in
Papua New Guinea sparked supply shortage fears.

RECOMMENDATION :BUY COPPER @ 438 SL 434 TGT 444-448 ,BUY ZINC @ 181 SL 179 TGT 184-186 ,BUY NICKEL @ 1240 SL
1200 TGT 1300-1340 ,BUY ALUMINUM @ 138 SL 136 TGT 140-143 ,BUY LEAD @ 153 SL 151 TGT 156-158 .

ENERGY
FUNDAMENTAL :

Crude oil settled flat on worries about a slowdown in economic growth and the impact on oil demand due to the trade war between the
world's two biggest oil consumers. Natural gas prices gained on short covering after prices dropped after forecasts pointing to
lower demand amid near-record production
RECOMMENDATION :SELL CRUDEOIL @ 4040 SL 4120 TGT 3820 ,BUY NAT GAS @ 164 SL 160 TGT 170-175 .

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03 Sep ,2019

J Street Recommendations Report Card

NIFTY last week opened at 11000 and fell to a low of 10756. Recovery was witnessed to 11141 and closed the week at 11023 thereby showed a net
gain of 1.79% on week to week basis. Cover short position at 11023 to 10637 range as the opportunity arises. Traders can maintain the
stop loss at 11182 to hold short position but first objective is to cover short position. A rise and close above 11182 with bullish candle can mark a
reversal for rise towards 11517-11725.Sell if sustains below Weekly Open and below 10637 with high of the week as the stop loss or 11182
whichever is higher.

Top Fundamental Stocks

Absolute
Stocks Rec. Date CMP on Rec. CMP Target Return @ Status
CMP

Reliance Nippon asset 5/2/2018 270 280.10 320 0% Accumulate

KEC International 11/9/2017 310 242.55 384 3% Accumulate

Maruti Suzuki 30/06/2017 7220 6049.70 10200 -15% Buy

Everest industries ltd 04/02/2019 440 292.40 520 14% Buy

Quess corp ltd 17/06/2019 580-540 470 800 37% Accumulate

Jubilant life sciences 17/06/2019 460 437.50 559 19.60% Buy

TVS Motor 24/04/2017 485 360.70 790 39% Buy

DCB Bank 17/04/2017 175 203 230 7% Buy

REC Ltd 27/03/2017 175 139.80 220 5% Accumulate

Petronet 20/02/2017 200 264.25 290 17% Buy

Escorts 6/2/2017 410 491.10 950 113% Buy

Edelweiss Financial 16/11/2016 117 108.20 350 132% Buy

IOC Ltd 27/02/2017 132 117.40 245 1% Accumulate

Dabur india ltd 15/1/2019 420 442.15 520 20% Buy

Mother Sumi 3/4/2017 160 95 250 3% Buy

Lic Hsg Finc 27/03/2017 608 410.90 700 -16% Buy

Asian Paints 10/3/2017 1030 1578.50 1460 17% Buy

NBCC India 20/03/2017 175 33.55 270 -48% Buy

M&M 12/1/2015 619 515.50 870 18% Buy
“Go for a business that any idiot can run-because sooner or later, any idiot probably is going to run it.”

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Forex Corner

Market Recap :
 The dollar rose to its highest level in nearly a month in early
trading on Friday, enjoying continued support from tenta-
tive signs of rapprochement in the trade war with China
ahead of the long Labor Day weekend.

 The U.K. Prime Minister Boris Johnson’s move to suspend

Parliament increased the risk of a no-deal Brexit and sent
the pound plunging, but strategists see a silver lining for ster-
ling

 The Japanese yen edged higher on Thursday, heading for its

biggest monthly rise since May as risk appetite remained on
the back foot with investors skeptical on the prospect of a
trade-war break- through any time soon

Market Eye Week ahead :

The USDINR On the daily chart, USDINR pair has been falling down from last two trading sessions after taking a resis-
tance of upper Bollinger band formation; which indicate bearish sentiments for near term. Price has shifted below 21
DEMA on daily chart, which confirms downward trend for near term. momentum indicator RSI (14) and MACD has
turned down with negative crossover on daily chart. based on the above analysis, we expect bearish movement in US-
DINR towards 71.30 levels.

USD/INR
Level S2 S1 CP R1 R2
USD/INR 70.82 71.28 71.74 71.91 72.20

EUR/INR
Level S2 S1 CP R1 R2
EUR/INR 78.15 78.77 79.39 79.62 80.63

GBP/INR
Level S2 S1 CP R1 R2
GBP/INR 86.35 86.95 87.55 87.90 88.15

JPY/INR
Level S2 S1 CP R1 R2
JPY/INR 66.75 67.15 67.55 67.95 68.35

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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-Jul-19 COLPAL BUY 1152 1180 1166.00 1221.00 1118 TA 3.6

2 9-Jul-19 SUPREMIND BUY 1126 1151 1138.50 1210.00 1082 SL -3.8

3 10-Jul-19 ABB BUY 1500 1531 1515.50 1612.00 1454 SL -3.8

4 11-Jul-19 BANDHANBK BUY 526 537 531.50 563.00 504 TA 4.1

5 12-Jul-19 MGL BUY 806 809 807.50 845.00 788 SL -3.8

6 15-Jul-19 UBL BUY 1362 1390 1376.00 1440.00 1326 TA 4.4

KALPAT-
7 16-Jul-19 BUY 490 510 500.00 551.00 472 TA 4.2
POWER
8 17-Jul-19 KAJARIACER BUY 556 574 565.00 1612.00 1454 SL -3.6

9 18-Jul-19 CENTURYTEX BUY 938 963 950.50 1002.00 908 EXIT .

10 19-Jul-19 NMDC BUY 113 116 114.50 123.00 107 SL -3.7

11 22-Jul-19 PVR BUY 1718 1737 1727.50 1806.00 1677 SL -3.8

12 23-Jul-19 ACC BUY 1542 1584 1563.00 1642.00 1468 TA 4.3

13 24-Jul-19 BPCL BUY 352 360 356.00 388.00 340 SL -3.6

14 25-Jul-19 BERGEPAINT BUY 315 324 319.50 346.00 303 TA 4.4

15 29-Jul-19 DABUR BUY 418 430 424.00 440.00 398 TA 4.4

16 31-Jul-19 COLPAL BUY 1150 1174 1162.00 1212.00 1122 TA 3.6

17 6-Aug-19 BAJAJAUTO BUY 2578 2602 2590.00 2686.00 2553 TA 4.2

18 7-Aug-19 GUJALKALI BUY 418 430 424.00 446.00 403 TA 3.8

19 8-Aug-19 GODREJCP BUY 615 636 625.50 658.00 584 TA 3.4

20 9-Aug-19 BAJAJAUTO BUY 2678 2712 2695.00 2812.00 2598 TA 3.6

21 13-Aug-19 COLPAL BUY 1206 1237 1221.50 1278.00 1167 TA 4.2

22 14-Aug-19 HEXAWARE BUY 371 376 373.50 397.00 358 TA 3.8

23 16-Aug-19 LTI BUY 1596 1628 1612.00 1678.00 1558 TA 3.8

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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 19-Aug-19 IGL BUY 320 328 324.00 351.00 306 OPEN

25 20-Aug-19 GODREJCP BUY 618 633 625.50 686.00 586 OPEN

26 22-Aug-19 DIVISLAB BUY 1510 1540 1525.00 1596.00 1468 TA 4.2

27 26-Aug-19 INFY BUY 784 803 793.50 837.00 756 OPEN

28 27-Aug-19 HCLTECH BUY 1068 1096 1082.00 1152.00 1036 OPEN

29 28-Aug-19 BATAINDIA BUY 1483 1512 1497.50 1574.00 1434 OPEN

30 29-Aug-19 ICICIGI BUY 1222 1260 1241.00 1260.00 1168 OPEN

STATUS CALLS RATIO

TA+PB 16 70.00

SL+EXIT 07 30.00

TOTAL 23 100.00

 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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