Vol.

: 353
28 AUG ,2017

Index

Market View 1
G LO B AL INT ER EST R AT ES WILL D ET ERM IN E F UT U R E OF TH E M AR K ET

Company Update 2
The global rally has started with abundant liquidity backed by many
Around the quantitative easing and stimulus packages declared by developed coun-
Economy 3
tries lead by USA and China. This stimulus programs have flooded the
Knowledge Corner 3 market with liquidity and the interest rates have fallen to historically low
levels, either at zero or negative category. This scenario has resulted
Mutual Fund 4 into very low financial cost which has improved corporate margin signifi-

Commodity Corner 5 cantly world over. Very significant chunk of this easy money have found
its way to equity market and fueled the rally. Now the central banks
Forex Corner 6 world over have started to think to raise the interest rates gradually.
They are in dilemma weather the economy can sustain the rise in rates
Report Card 7
or not. USA has started to raise the rates from December 2016 onwards.
Short Term Call Status 8 The market is expecting another round of rise by Fed in this calendar
year. Any steep rise either in September or December may affect the
market sentiment negatively.

Special Contributors
Kunal Shah
Dhaval Ghodasara
At local level, good monsoon is impacting the market positively but
the development at GST level is much more important at present. The
initial statements by Government officers are encouraging and positive.
The collection for the month of July is above their expectation and the
number of filing of returns are also encouraging. Any good collection of
GST will give a much required Phillip to the economy. The only concern
is of effect on working capital due to GST. The picture will be clear
within three months or so but the initial reports are encouraging. Techni-

For suggestions, feedback cally any rise above 9880-9950 and 10050 will take the Nifty to new
and queries heights. Any fall below 9750-9665 may trigger the fall.
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 National Anti-profiteering Authority will step in and ask businesses that have not passed on full benefits of a reduced tax bur-
den to consumers to make up for it with interest. On the political front, the Janata Dal (United) led by Bihar Chief Minister Nitish
Kumar, passed a resolution on Saturday, 19 August 2017 to join the National Democratic Alliance (NDA), mere weeks after the
party broke away from the grand alliance in Bihar.

US President Donald Trump warned on Tuesday, 22 August 2017, he might terminate the NAFTA trade treaty with Mexico and
Canada after three-way talks failed to bridge deep differences. The annual Jackson Hole Economic Policy Symposium is sched-
uled on 25 August 2017, in Wyoming. Representatives from the central banks of more than 40 countries will attend the annual
gathering, hosted by the Federal Reserve Bank of Kansas City.

Market Eye Week ahead :

On the macro front, the government will announce data on Q1 June 2017 gross domestic product after market hours on Thursday,
31 August 2017. On the macro front, the government will announce data on Q1 June 2017 gross domestic product after market
hours on Thursday, 31 August 2017. Markit Economics will unveil the result of a monthly survey on the performance of India's
manufacturing sector in August on Friday, 1 Sept.

US ADP Nonfarm Employment Change data for August 2017 will be unveiled on Wednesday, 30 August 2017. US Q2 Gross Do-
mestic Product (GDP) data will be unveiled on Wednesday, 30 August 2017. US Nonfarm Payrolls data for August 2017 will be un-
veiled on Friday, 1 September 2017. ISM Manufacturing purchasing managers index (PMI) for August 2017 will be unveiled on Fri-
day, 1 September 2017.

Key Events / Factors to Watch

1. Mon : AGM: Indigo, JuBbl Food,Voltas.
2. Tue : AGM: IOC, Minda Ind, FLFL
3. Wed : Dividend: J Klakshmi , P I iNdustries.
4. Thu: Dividend: GAIL, GSFC, GACL.
5. Fri : Dividend: Dilip Buildcon.

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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Mutual Fund Corner

Top 10 Sector Break-Ups
Fund Name
Scheme Name Birla Sun Life Balanced Advantage Fund
Sector Weights Fund (%)
Financial 23.73
AMC Birla Sun Life Asset Management Company Ltd
Energy 10.04
Type Open Ended & Hybrid Asset Allocation Automobile 7.59
Healthcare 1.32
Category Open-ended
FMCG 11.60
Launch Date April 2000 Engineering 0.97
Technology 5.88
Fund Manager Vineet Maloo & Mohit Sharma
Construction 3.00
Net Assets (` Metals 4.95
1745.4 Cr as on July 31, 2017
In crore )
Chemicals 1.23
History 2014 2015 2016 2017 Risk Analysis
Volatility Measures
NAV (Rs) 36.80 38.13 44.35 49.64
Standard Deviation 10.21
Total Return (%) 27.73 3.61 16.31 11.93 Sharpe Ratio 0.78
Beta 0.83
Rank (Fund/Category) - 13/18 2/18 12/18
R-Squared 0.77
Alpha 4.12
52 Week High (Rs) 37.51 39.01 45.35 49.91

52 Week Low (Rs) 27.64 35.68 34.01 44.43 Composition (%)

Equity 73.97
Net Assets (Rs.Cr) 4.69 4.89 58.22 1028.22 Debt 25.78

Expense Ratio (%) Cash 0.24

2.85 2.94 2.94 -

Fund Performance v/s Nifty 50 Fund Style

Investment Style
Growth Blend Value
Large
Capitalization

Medium

Small

Fund
VR Balanced
(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 rupee on Monday strengthened past 63 mark

to hit near three-week high against the US dollar,
tracking gains in its Asian peers and local equity
markets.

The 10-year bond yield was at 6.574% compared

to its previous close of 6.538%. Bond yields and
prices move in opposite directions.

The dollar index, which measures the US cur-

rencys strength against major currencies, was
trading at 92.501, down 0.26% from its previous
close of 92.74.

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 64.30-64.40 with SL of 64.80 for target of
63.90-63.70.

USD/INR
Level S2 S1 CP R1 R2 High Low Close
USD/INR 63.90 63.96 64.09 64.15 64.28 64.21 64.02 64.03

EUR/INR
Level S2 S1 CP R1 R2 High Low Close
EUR/INR 74.94 75.23 75.50 75.79 76.06 75.78 75.22 75.51

GBP/INR
Level S2 S1 CP R1 R2 High Low Close
GBP/INR 81.33 81.73 82.30 82.70 83.27 82.87 81.90 82.13

JPY/INR
Level S2 S1 CP R1 R2 High Low Close
JPY/INR 58.27 58.42 58.66 58.81 59.05 58.90 58.51 58.57

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J Street Recommendations Report Card

Nifty last week opened at 9857.05, attained a low at 9740.10 and moved up to 9884.34. Nifty finally closed the week at
9857.05 thereby showed a net rise of 0.20%. Traders by chance still long and holding the same can maintain the stop loss at
9685.Resistance will be at 9884-9948-9988. Higher level of 9988 or above can be used to exit long and take profits.

Top Fundamental Stocks

Absolute
Stocks Rec. Date CMP on Rec. CMP Target Return @ Status
CMP
DHFL Ltd 27/06/2017 430 480 530 12% Buy

Manappuram Finance 30/05/2017 87 96 130 10% Accumulate

Godrej Properties 12/05/2017 508 540 630 3% Buy

Tvs Motor 24/04/2017 485 599 630 24% Buy

DCB Bank 17/04/2017 175 184 310 5% Accumulate

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

Petronet 20/02/2017 200 225 490 13% Buy

Escorts 06/02/2017 383 619 790 51% Buy

Edelweiss financial 16/01/2017 117 238 235 103% Accumulate
IOC Ltd 27/02/2017 376 436 490 16% Buy

Marico 20/02/2017 255 319 370 25% Buy

Voltamp transformer 13/02/2017 980 1105 1360 13% Buy

Mothersumi 03/04/2017 300 312 495 4% Accumulate

Lic hsg Finc 27/03/2017 608 659 830 8% Buy

Asian Paints 10/03/2017 1030 1145 1260 11% Buy

Nbcc india 20/03/2017 175 206 225 18% Buy

Alembic Pharmaceuti-
30/08/2016 630 513 732 -19% Buy
cals
Wonderla 25/04/2016 387 338 498 -13% Buy
Sadbhav Engineering
04/05/2015 298 269 430 -10% Buy
Ltd.
M&M 12/01/2015 1238 1374 1450 11% Profit Book

On Saving, Dont save what is left after saving , but spend what is left after saving.

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

2 13-Jul-17 IOC BUY 388 393 390.50 408.00 377 SL -3.6

3 14-Jul-17 VOLTAS BUY 480 490 485.00 512.00 468 TA 4.4

4 17-Jul-17 INDIANB BUY 312 317 314.50 330.00 303 TA 4.4

5 18-Jul-17 BHARATFORG BUY 1140 1150 1145.00 1195.00 1112 TA 4.2

6 19-Jul-17 ZEEL BUY 525 535 530.00 564.00 509 TA 4

7 20-Jul-17 DHFL BUY 465 472 468.50 492.00 454 SL -3.4

8 21-Jul-17 PFC BUY 125 128 126.50 134.00 122 SL -3.8

9 24-Jul-17 CUMMINSIND BUY 995 1010 1002.50 1052.00 968 TA 4.3

10 25-Jul-17 GODREJCP BUY 985 996 990.50 1038.00 958 TA 4.2

11 26-Jul-17 UPL BUY 882 894 888.00 930.00 861 SL -3.2
12 27-Jul-17 BEL BUY 173 177 175.00 185.00 169 TA 4.4

13 31-Jul-17 HAVELLS BUY 475 482 478.50 502.00 463 SL -3.4

14 1-Aug-17 PCJWELLERS BUY 254 258 256.00 270.00 248 TA 4.6

15 2-Aug-17 ADANIPORT BUY 402 406 404.00 422.00 394 TA 4.4
16 3-Aug-17 VOLTAS BUY 538 545 541.50 570.00 524 TA 4.2

17 4-Aug-17 HINDPETRO BUY 391 396 393.50 412.00 382 TA 4.1

18 7-Aug-17 NTPC BUY 174 178 176.00 187.00 169 SL -3.6

19 8-Aug-17 HINDALCO BUY 225 229 227.00 238.00 220 TA 4.2

20 9-Aug-17 HEXAWARE` BUY 258 263 260.50 273.00 252 TA 4.3
21 10-Aug-17 VEDL BUY 297 301 299.00 313.00 290 OPEN

22 11-Aug-17 STAR SELL 950 938 944.00 902.00 976 TA 4.2

23 14-Aug-17 MCDOWELL SELL 2440 2410 2425.00 2315.00 2790 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 16-Aug-17 M&MFIN BUY 420 424 422.00 445.00 412 OPEN .

25 17-Aug-17 RADICO BUY 158 162 160.00 183.00 148 TA 4.3

26 18-Aug-17 CESC BUY 940 955 947.50 992.00 915 TA 4.6

27 21-Aug-17 HAVELLS BUY 474 482 478.00 499.00 462 OPEN .

28 22-Aug-17 AMBUJACEM BUY 272 276 274.00 287.00 265 OPEN .

29 23-Aug-17 DHFL BUY 455 462 458.50 480.00 443 OPEN .

30 24-Aug-17 BEL BUY 940 955 947.50 992.00 915 OPEN .

STATUS CALLS RATIO

TA+PB 17 73.91

SL+EXIT 06 26.09

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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