Vol.

: 355
11 SEPT ,2017

Index

Market View 1
MARKET VIEW
Company Update 2
GDP DECLINE SEEMS TEMPORARY
Around the
Economy 3 Between 9000 to 10000, the market seems to have lost its strength and is strug-
gling to go beyond this range. Stock specific rally can be witnessed but the broader
Knowledge Corner 3 market is showing the sign of weakness near this resistance level. The geopolitical ten-
sion does not seem to be reducing and aggressive statements from both the nations
Mutual Fund 4 are keeping the global market on tenterhook. As per the opinion of experts, the market
can scale new heights on the back of resolution of the Korean crisis. Until that, the
Commodity Corner 5
sentiment of the market gets spoiled with each such statements and actions by either
side. Some dovish statements made by The Fed and ECB Chairperson last week has
Forex Corner 6
helped the global market to remain stable in last couple of days.
Report Card 7

Short Term Call Status 8 At local level, the earning concern is still there and any weakness in earnings go-
Special Contributors
Kunal Shah
Dhaval Ghodasara
ing forward will certainly spoil the sentiment as the market is discounting the earning
recovery in this fiscal. We are witnessing that only few sectors and scripts are having
upward trajectory. But the abundant liquidity available to the mutual funds, insurance
companies and other local institutes is keeping the buying interest intact. Under the
circumstances, focus on scripts rather than the market and keep an eye on geopolitical
development with caution. Technically any rise above 9950-9980 can take the market
to higher levels with support at 9880-9850. The consolidation between this range sug-
gests that either side breakout is possible.

For suggestions, feedback

and queries
jstreet@jhaveritrade.com

Kamal Jhaveri
MD- Jhaveri Securities

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11 SEPT ,2017

Company Update : KEC INTERNATIONAL LTD

Company Basics Financial Basics Share Holding Pattern
BSE Code 532714 FV (`) 2.00 Holder's Name % Holding
EPS (`) (TTM) 12.26 Promoter 50.86
NSE Symbol KEC P/E (x) (TTM) 25.61 Public 49.14

EQUITY (` in Cr.) 51.42 P/BV (x) (TTM) 66.86

MKT.CAP (` in Cr.) 8100

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

KEC has a strong healthy order book of 14000 cr.

KEC is only company having 4 tower testing centre in the world.

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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Around The World

Weekly Market Recap :
India Meteorological Department (IMD) said that cumulative area weighted rainfall for the country as a whole till 5
September 2017 was 5% below normal. CICI Bank fell 2.08%. The bank said it has fixed the price band for the
proposed initial public offer (IPO) of its insurance subsidiary viz. ICICI Lombard General Insurance Company at Rs
651 to 661 per share.

On the political front, PM Narendra Modi's expansion and reshuffle of his Council of Ministers took place on Sun-
day, 3 September 2017. Nine new Ministers of State made it to the Union Cabinet, while four existing ministers
Nirmala Sitharaman, Piyush Goyal, Dharmendra Pradhan and Mukhtar Abbas Naqvi were promoted to Cabinet
rank.

Market Eye Week ahead :

On macro front, on Tuesday, 12 September 2017, the government will announce industrial production data for July.
The government will also announce inflation data based on consumer price index (CPI) for August 2017. inflation
data based on wholesale price index (WPI) for August 2017, will be announced during market hours on Thursday,
14 September 2017.

On the global front, Bank of England will announce monetary policy summary and minutes of the monetary policy
committee meeting on Thursday, 14 September 2017. In US, data on the consumer price Index for August will be
announced on Thursday, 14 September 2017. The Federal Reserve's monthly index of industrial production for Au-
gust will be unveiled on Friday, 15 September 2017.

Key Events / Factors to Watch

1. Mon : Dividend:Engineers india,Powergrid,TNPL
2. Tue : Dividend: Concor, Dalmia Bharat
3. Wed : Dividend: BEML, NHPC,Oberoi realty, Repco home
4. Thu: Dividend: MGL, NMDC,Oil India,Reliance infra, REC Ltd
5. Fri : Dividend: Divis lab, Jindal saw.

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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11 SEPT ,2017

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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11 SEPT ,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 : SELL GOLD @ 30250 SL 30450 TGT 30200-29780 SELL SILVER @41500 SL 41900 TGT 40950-40400

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 : SELL ALUMINIUM @ 136 SL 139 TGT 132.5-128 SELL COPPER @ 442 SL 454 TGT 428-416 SELL ZINC @ 199 SL
203 TGT 193.8-188 SELL NICKEL @ 750 SL 770 TGT 728-715.

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 @ 3100 SL 3220 TGT 2960-2850 SELL NAT.GAS @ 190 SL 198 TGT 184-178

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Commodity Corner
Forex Corner
Market Recap :

The rupee on Monday weakened marginally

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

The 10-year bond yield was at 6.55% compared

to its previous close of 6.543%. Bond yields and
prices move in opposite directions.

The dollar index, which measures the US cur-

rencys strength against major currencies, was
trading at 91.5, up 0.16% from its previous close
of 91.352.

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 64.80-64.40 with SL of 65.20 for target of
63.78-63.55.

USD/INR
Level S2 S1 CP R1 R2 High Low Close
USD/INR 63.55 63.74 64.07 64.26 64.59 64.41 63.89 64.41

EUR/INR
Level S2 S1 CP R1 R2 High Low Close
EUR/INR 75.69 76.40 76.90 77.61 78.11 77.39 76.18 77.12

GBP/INR
Level S2 S1 CP R1 R2 High Low Close
GBP/INR 82.53 83.46 83.93 84.86 85.33 84.41 83.01 84.38

JPY/INR
Level S2 S1 CP R1 R2 High Low Close
JPY/INR 57.87 58.70 59.13 59.96 60.39 59.56 58.30 59.53

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J Street Recommendations Report Card

Nifty last week opened at 9984.15 and maintain the same as the high for the week. Nifty fell to the low of 9861 and closed the week at
9934.80. Nifty showed a net fall of 0.40%.The current sideways movement is the result of the fall from10137 to 9685.Resistance and
supply zone is 9988-10066-10137. Weakness is below 9861.Sell on rise to 10066 or above with a stop loss of 10137.In the event of the
rise and weekly close above 10137 with bullish candle expect a rally to 10590-10869.Traders can buy above 10137 with low of the day
week as the stop loss or 9861.

Top Fundamental Stocks

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

KEC International 11/09/2017 310 310 384 0 Accumulate

Maruti Suzuki 30/06/2017 7220 8100 9000 12% Accumulate

DHFL Ltd 27/06/2017 430 552 590 28% Buy

Manappuram Fi-
30/05/2017 87 110 130 26% Buy
nance
Godrej Properties 12/05/2017 508 593 630 3% Accumulate

Tvs Motor 24/04/2017 485 642 650 32% Buy

DCB Bank 17/04/2017 175 190 310 9% Buy

REC Ltd 27/03/2017 175 164 240 -6% Buy

Petronet 20/02/2017 200 235 290 18% Accumulate

Escorts 06/02/2017 410 666 790 62% Buy

Edelweiss financial 16/11/2016 117 259 275 121% Buy

IOC Ltd 27/02/2017 376 434 490 15% Buy

Marico 20/02/2016 255 322 370 26% Accumulate

Voltamp trans-
13/02/2017 980 1123 1360 15% Buy
former
Mothersumi 03/04/2017 300 332 495 11% Buy

Lic hsg Finc 27/03/2017 608 661 830 9% Buy

Asian Paints 10/03/2017 1030 1211 1260 18% Buy

Nbcc india 20/03/2017 175 208 225 19% Buy

M&M 12/01/2015 1238 1304 1450 5% Buy

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

2 26-Jul-17 UPL BUY 882 894 888.00 930.00 861 SL -3.2

3 27-Jul-17 BEL BUY 173 177 175.00 185.00 169 TA 4.4

4 31-Jul-17 HAVELLS BUY 475 482 478.50 502.00 463 SL -3.4

5 1-Aug-17 PCJWELLERS BUY 254 258 256.00 270.00 248 TA 4.6

6 2-Aug-17 ADANIPORT BUY 402 406 404.00 422.00 394 TA 4.4

7 3-Aug-17 VOLTAS BUY 538 545 541.50 570.00 524 TA 4.2

8 4-Aug-17 HINDPETRO BUY 391 396 393.50 412.00 382 TA 4.1

9 7-Aug-17 NTPC BUY 174 178 176.00 187.00 169 SL -3.6

10 8-Aug-17 HINDALCO BUY 225 229 227.00 238.00 220 TA 4.2

11 9-Aug-17 HEXAWARE` BUY 258 263 260.50 273.00 252 TA 4.3
12 10-Aug-17 VEDL BUY 297 301 299.00 313.00 290 TA 4.2

13 11-Aug-17 STAR SELL 950 938 944.00 902.00 976 TA 4.2

14 14-Aug-17 MCDOWELL SELL 2440 2410 2425.00 2315.00 2790 SL 3.4

15 16-Aug-17 M&MFIN BUY 420 424 422.00 445.00 412 TA 4.2
16 17-Aug-17 RADICO BUY 158 162 160.00 183.00 148 TA 4.3

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

18 21-Aug-17 HAVELLS BUY 474 482 478.00 499.00 462 SL -2.8

19 22-Aug-17 AMBUJACEM BUY 272 276 274.00 287.00 265 TA 4.4

20 23-Aug-17 DHFL BUY 455 462 458.50 480.00 443 TA 4.6
21 24-Aug-17 BEL BUY 181 184 182.50 194.00 173 TA 4.2

22 28-Aug-17 KAJARIACER BUY 695 707 701.00 742.00 676 OPEN .

23 29-Aug-17 HINDUNILVR BUY 1190 1210 1200.00 1260.00 1162 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 30-Aug-17 GSFC BUY 139 142 140.50 151.00 135 TA 4.2

25 31-Aug-17 PEL BUY 2700 2730 2715.00 2848.00 2641 OPEN .

26 4-Sep-17 ASIANPAINT BUY 1200 1220 1210.00 1276.00 1165 OPEN .

27 5-Sep-17 ARVIND BUY 387 392 389.50 408.00 379 TA 4.4

28 6-Sep-17 DALMIABHA BUY 2735 2760 2747.50 2870.00 2665 OPEN .

29 7-Sep-17 TATAGLOBAL BUY 203 208 205.50 220.00 196 OPEN .

30 8-Sep-17 CADILAHC BUY 508 515 511.50 540.00 493 OPEN .

STATUS CALLS RATIO

TA+PB 18 78.26

SL+EXIT 05 21.74

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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