Vol.

: 352
21 AUG ,2017

Index

Market View 1
MARKET VIEW

Company Update 2
MARKET AT CROSSROADS
Around the The geopolitical tension is getting eased with some statements by world leaders to
Economy 3
ease the pressure. India is also trying to negotiate with China and to find out some so-
Knowledge Corner 3 lution acceptable to both the countries. In view of this situation the world market is try-
ing to discount the geopolitical tension. But the question regarding President Trumps
Mutual Fund 4
ability to manage the promised agenda is in lime light in USA at present. The US mar-
Commodity Corner 5 ket has lost more than 200 points in single session on back of this uncertainty. More

Forex Corner 6 uncertainty about President Trumps ability can create high volatility in the world mar-
ket including India. The crisis at Infosys is also making the market nervous. The Gov-
Report Card 7
ernment has announced some measures to boost the confidence of lenders to default-
Short Term Call Status 8 ing companies as well as the prospective buyers of such defaulting companies. The
Government is also recognizing the practical problems and issues in GSTN and is try-
ing to give solutions on periodical basis.

Special Contributors
The market is really at crossroads from where it can correct meaningfully or can
Kunal Shah
Dhaval Ghodasara scale new heights depending on the news flows. But one thing is sure that the constant
inflow by the retail investors through mutual funds is keeping the liquidity pipe live in
the market. Under the circumstances it is of utmost importance that one should stick to
the high quality stocks with medium to long term view. Technically, the market is find-
ing support at 9780-9685 and resistance at 9900-9950-10000.

For suggestions, feedback

and queries
[email protected]

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 all-India general Consumer Price Index (CPI)-based inflation rebounded 2.36% in July 2017, compared with 1.46% in June 2017.
India's industrial production in June 2017 contracted 0.1%, the lowest reading since June 2013, driven primarily by a 6.8% contraction in
capital goods.IT major Infosys announced buy back of 13000 cr Rs and the hdfc files for IPO of its arm HDFC Life insurance and Reli-
ance capital of Reliance Asset management co.

On the global front, Japanese exports rose 13.4% in July from a year ago, helped by exports of cars and automotive components. It was
the eighth straight monthly gain in exports. US retail sales recorded their biggest increase in seven months in July as consumers boosted
purchases of motor vehicles as well as discretionary spending, suggesting the economy continued to gain momentum early in the third
quarter.

Market Eye Week ahead :

Domestic stock markets remain closed on Friday, 25 August 2017 on account of Ganesh Chaturthi. The IMD said that for the country as a
whole, cumulative rainfall during this year's monsoon upto 16 August has been 4% below the Long Period Average (LPA). he June-
September southwest monsoon is critical for the country's agriculture because a considerable part of the country's farmland is dependent
on the rains for irrigation.

On the global macro front, Markit Economics will announce Nikkei Manufacturing PMI Flash for August. Markit Economics will announce
Markit Services PMI Flash for August. The IHS Markit US Services PMI rose to 54.7 in July of 2017 from a preliminary of 54.2 and 54.2 in
June.

Key Events / Factors to Watch

1. Mon : Dividend: Minda Ind, Sun tv.
2. Tue : Dividend: Manappuram, ENIL Ltd, Pfizer.
3. Wed : Result: Castrol india, P&G
4. Thu: Dividend: Chambal Ferti, India cements
5. Fri : Dividend: Maruti Suzuki

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 Birla sun life Top 100 Fund
Sector Weights Fund (%)
Financial 29.43
AMC Birla Sun Life Asset Management Company Ltd
Energy 10.41
Type Open Ended & Equity Large Cap Automobile 8.24
Healthcare 6.08
Category Open-ended
FMCG 9.58
Launch Date January 2013 Services 5.57
Technology 8.92
Fund Manager Mahesh Patil
Communication 7.03
Net Assets (` Metals 6.59
2984.8 Cr as on June 30, 2017
In crore )
Chemicals 4.35
History 2014 2015 2016 2017 Risk Analysis
Volatility Measures
NAV (Rs) 42.83 43.19 46.61 57.42
Standard Deviation 12.79
Total Return (%) 50.21 0.84 7.92 23.19 Sharpe Ratio 0.73
Beta 0.94
Rank (Fund/Category) 59/145 107/173 18/155 49/172
R-Squared 0.92
Alpha 5.82
52 Week High (Rs) 43.72 46.13 50.34 57.51

52 Week Low (Rs) 27.12 40.80 37.85 46.69 Composition (%)

Equity 94.44
Net Assets (Rs.Cr) 989.20 1808.18 2227.19 2835.39 Debt 5.80

Expense Ratio (%) - - - - Cash -0.24

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 small losses but downside seen limited as the dollar retreated
on political uncertainty in the United States and a series of terrorist attacks in Spain continued to support demand
for the safe-haven metal. Gold prices strengthened after a van rammed into pedestrians in a crowded tourist area
of Barcelona on Thursday evening, killing at least 14 people and injuring 100 others. Shortly after, a second at-
tack was perpetrated in Cambrils, a coastal town south of Barcelona, where police said they killed five attackers.
Markets were also uncertain about U.S. President Donald Trump's ability to push ahead with policies after the dis-
bandment of two high-profile business advisory councils over his remarks on violence in Virginia.The precious
metal was also supported by a weaker U.S. dollar amid concerns U.S. President Donald Trump will not be
able to implement his agenda, as he faces mounting opposition even from within his own political party.

RECOMMENDATION : SELL GOLD @ 29150 SL 29560 TGT 28850-28540 SELL SILVER @39000 SL 39850 TGT 38250

BASE METALS

FUNDAMENTAL : Last week, base metals prices ended with gains as Chinese infrastructure demand that has fed a
rally in steel prices for months spills into markets for steelmaking raw materials. Strong growth in the world's larg-
est consumer of metals showed signs of fading in July but a construction spree kept activity solid, while the Inter-
national Monetary Fund raised its 2018-2020 average growth forecast. U.S. homebuilding unexpectedly fell in
July as the construction of multi-family houses tumbled to a 10-month low, but strong job growth is expected to
continue to support the housing market recovery. Zinc prices rallied by more than 8.28 percent amid expectations
of strong global demand and tight supplies. Prices also seen supported as a sharp fall in stocks held the metal
near its highest in a decade. Prices could rise further as Chinese demand will likely remain solid until at least the
end of the year.

RECOMMENDATION : SELL ALUMINIUM @ 134 SL 138 TGT 128 SELL COPPER @ 420 SL 426 TGT 412-404 BUY ZINC @ 195 SL 191
TGT 208 BUY NICKEL @ 700 SL 685 TGT 724-45.

ENERGY

FUNDAMENTAL : Crude oil dropped by 0.74 percent a selloff across markets, including U.S. and Asian stocks, where in-
vestors voted with their feet amid growing scepticism that U.S. President Donald Trump, embroiled in controversy,
would achieve his economic agenda. The overall softness in financial markets added to the perception that oil supply
remains higher than demand despite producer efforts to reduce output. The Organization of the Petroleum Exporting
Countries (OPEC), together with non-OPEC producers like Russia, has pledged to restrict output by 1.8 million barrels
per day (bpd) between January this year and March 2018. U.S. energy firms cut oil rigs for a second week in three,
the Baker Hughes energy services firm reported, with drillers cutting spending plans in reaction to declining crude
prices. Drillers cut five oil rigs in the week to Aug. 18, bringing the total count down to 763, Baker Hughes said. Earlier
in the week, government data had suggested that crude output in the United States was still rising.

RECOMMENDATION : BUY CRUDE @ 3050 SL 2980 TGT 3140-3250 SELL NAT.GAS @ 189 SL 194 TGT 180

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Commodity Corner
Forex Corner
Market Recap :

The rupee on Monday strengthened marginally

against the US dollar tracking gains in the Asian
currencies markets.

The 10-year bond yield was at 6.506% against

6.513% from its previous close. Bond yields and
prices move in opposite directions.

The dollar index, which measures the US cur-

rencys strength against major currencies, was
trading at 93.478, up 0.04% from its previous
close of 93.434.

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 64.40-64.20 with SL of 64.90 for target of
63.90-63.70.

USD/INR
Level S2 S1 CP R1 R2 High Low Close
USD/INR 63.84 64.02 64.22 64.40 64.60 64.41 64.03 64.21

EUR/INR
Level S2 S1 CP R1 R2 High Low Close
EUR/INR 74.80 75.13 75.52 75.85 76.24 75.91 75.19 75.46

GBP/INR
Level S2 S1 CP R1 R2 High Low Close
GBP/INR 82.10 82.44 82.99 83.33 83.88 83.54 82.65 82.78

JPY/INR
Level S2 S1 CP R1 R2 High Low Close
JPY/INR 57.65 58.28 58.60 59.23 59.55 58.93 57.98 58.90

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J Street Recommendations Report Card

Nifty last week opened at 9755.75, attained a low at 9752.10 and moved up to 9947.80. Nifty closed the week at 9837.40 thereby showed a net rise
of 1.30% on week to week basis. Traders can sell on fall and close below 9685 with high of the week as the stop loss or 9948 whichever is higher.
Resistance will be at 9939-10041-10137.Trader can sell on rise to 9988 or above with a stop loss of 10137. Upside momentum can resume on
breakout and close above10137.On fall and close below 9685 expect a slide to 9450 or below.

Top Fundamental Stocks

Absolute
Stocks Rec. Date CMP on Rec. CMP Target Return @ Status
CMP
DHFL Ltd 27/06/2017 430 460 530 7% Buy

Manappuram Finance 30/05/2017 87 86 130 -1% Accumulate

Godrej Properties 12/05/2017 508 510 630 3% Buy

Tvs Motor 24/04/2017 485 580 630 20% Buy

DCB Bank 17/04/2017 175 180 310 3% Accumulate

REC Ltd 27/03/2017 175 167 240 -5% Buy

Petronet 20/02/2017 200 228 490 14% Buy

Escorts 06/02/2017 383 620 790 51% Buy

Edelweiss financial 16/01/2017 117 250 235 114% Accumulate
IOC Ltd 27/02/2017 376 428 490 14% Buy

Marico 20/02/2017 255 318 370 25% Buy

Voltamp transformer 13/02/2017 980 1120 1360 14% Buy

Mothersumi 03/04/2017 300 324 495 8% Accumulate

Lic hsg Finc 27/03/2017 608 658 830 8% Buy

Asian Paints 10/03/2017 1030 1131 1260 10% Buy

Nbcc india 20/03/2017 175 209 225 19% Buy

Alembic Pharmaceuti-
30/08/2016 630 522 732 -17% Buy
cals
Wonderla 25/04/2016 387 340 498 -12% Buy
Sadbhav Engineering
04/05/2015 298 271 430 -9% Buy
Ltd.
M&M 12/01/2015 1238 1378 1450 11% 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 6-Jul-17 BHARATFIN BUY 738 749 743.50 781.00 718 TA 4.6

2 7-Jul-17 CENTURYTEX BUY 1120 1135 1127.50 1178.00 1090 TA 4.4

3 10-Jul-17 ASHOKLEY BUY 103 105 104.00 109.00 100 TA 4.2

4 11-Jul-17 GODREJIND BUY 662 674 668.00 700.00 646 TA 4.4

5 12-Jul-17 POWERGRID BUY 210 214 212.00 223.00 205 TA 4.4

6 13-Jul-17 IOC BUY 388 393 390.50 408.00 377 SL -3.6

7 14-Jul-17 VOLTAS BUY 480 490 485.00 512.00 468 TA 4.4

8 17-Jul-17 INDIANB BUY 312 317 314.50 330.00 303 TA 4.4

9 18-Jul-17 BHARATFORG BUY 1140 1150 1145.00 1195.00 1112 TA 4.2

10 19-Jul-17 ZEEL BUY 525 535 530.00 564.00 509 TA 4

11 20-Jul-17 DHFL BUY 465 472 468.50 492.00 454 SL -3.4
12 21-Jul-17 PFC BUY 125 128 126.50 134.00 122 SL -3.8

13 24-Jul-17 CUMMINSIND BUY 995 1010 1002.50 1052.00 968 TA 4.3

14 25-Jul-17 GODREJCP BUY 985 996 990.50 1038.00 958 TA 4.2

15 26-Jul-17 UPL BUY 882 894 888.00 930.00 861 SL -3.2
16 27-Jul-17 BEL BUY 173 177 175.00 185.00 169 TA 4.4

17 31-Jul-17 HAVELLS BUY 475 482 478.50 502.00 463 SL -3.4

18 1-Aug-17 PCJWELLERS BUY 254 258 256.00 270.00 248 TA 4.6

19 2-Aug-17 ADANIPORT BUY 402 406 404.00 422.00 394 TA 4.4

20 3-Aug-17 VOLTAS BUY 538 545 541.50 570.00 524 TA 4.2
21 4-Aug-17 HINDPETRO BUY 391 396 393.50 412.00 382 TA 4.1

22 7-Aug-17 NTPC BUY 174 178 176.00 187.00 169 SL -3.6

23 8-Aug-17 HINDALCO BUY 225 229 227.00 238.00 220 TA 4.2

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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 9-Aug-17 HEXAWARE` BUY 258 263 260.50 273.00 252 TA 4.3

25 10-Aug-17 VEDL BUY 297 301 299.00 313.00 290 OPEN .

.26 11-Aug-17 STAR SELL 950 938 944.00 902.00 976 TA 4.2

27 14-Aug-17 MCDOWELL SELL 2440 2410 2425.00 2315.00 2790 OPEN .

28 16-Aug-17 M&MFIN BUY 420 424 422.00 445.00 412 OPEN .

29 17-Aug-17 RADICO BUY 158 162 160.00 183.00 148 TA 4.3

30 18-Aug-17 CESC BUY 940 955 947.50 992.00 915 OPEN .

STATUS CALLS RATIO

TA+PB 19 76.00

SL+EXIT 06 24.00

TOTAL 25 100.00

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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