Vol.

: 346
27 JUNE ,2017

Index

Market View 1

Company Update 2 M AR K E T V I E W

Around the MANY IMPORTANT EVENTS ARE LINED UP IN NEAR FUTURE WHICH WILL DE-
Economy 3 CIDE THE COURSE OF MARKET
Knowledge Corner 3
As the title suggests, many important events are going to take place in near fu-
4 ture. All this events have potential to decide the future course of action in the market.
Mutual Fund th
The Government has declared that on 30 June midnight, India will have new set of
Commodity Corner 5 indirect taxation called GST. The GST is going to be a game changer for the trade and
business in India and organized sector is going to benefit a lot from its implementation.
Forex Corner 6 Let us study the detail of share of unorganized sector in the total business.

Report Card 7 Another important event will be the first quarter results as the market expects in-
significant impact of demonetization on the results of first quarter. On the expectation
Short Term Call Status 8 of good show by corporate India in the first quarter, the market has run up in advance.
The world is also watching with interest the meeting between Trump and Modi. Any
concrete development at this meeting will also be positive for the market.

Special Contributors
Kunal Shah
Dhaval Ghodasara
The talk of initial problems in implementing GST has made the market cautious
and it will remain ranged bound till the clarity emerges. Technically the market is in cor-
rection mode. Either it may be a time correction or price correction. There is strong
support at 9540-9450-9340 and strong resistance at 9650-9710 range.

For suggestions, feedback

and queries
jstreet@jhaveritrade.com

Kamal Jhaveri
MD- Jhaveri Securities

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Company Update : MANAPPURAM FINANCE LTD

Company Basics Financial Basics Share Holding Pattern
BSE Code 531213 FV (`) 2.00 Holder's Name % Holding
EPS (`) (TTM) 7.64 Promoter 34.45
NSE Symbol Manappuram P/E (x) (TTM) 11.66 Public 65.55

EQUITY (` in Cr.) 84 P/BV (x) (TTM) 2.74

MKT.CAP (` in Cr.) 7497

Outlook and valuation : We recommend BUY on the stock BUY rating for the stock and value MGFL at
SoTP valuations, with gold business at 3.0x P/BV, micro-finance at 4.2x P/B FY18E. Subse-
quently, our target price stands at INR 130.

Company Overview :
Manappuram Finance Ltd (Formerly known as Manappuram General Finance and Leasing Ltd) is a non-banking
finance company. The company provides a range of services, including gold loans, vehicle finance, insurance, for-
eign exchange services, distribution of mutual funds and other financial products. The company currently operates
through more than 1000 branches spread across the country. During the year 1994-95, the company opened new
branches in Calicut, Guruvayur, Ernakulam and Thriprayar. In the year 2002, they started Forex business as a
part of its diversification.

Investment rationale for Manappuram Finance Ltd

Despite the impact of demonetization, Manappuram Finance (MGFL) recorded an all-round performance for Q3FY17 with PAT at
INR 2.036 bn (increased 101.5% on Y-o-Y basis and 52% on Q-o-Q basis) largely led by robust increase in Net interest in-
come (increased 53% on Y-o-Y basis and 6.8% on Q-o-Q basis) and controlled operating expenses (increased merely 9.6% on Y- o-
Y basis).

Product diversification strategy and rising gold loan volumes (gold holdings up 11% Y-o-Y; with large focus on-line gold loan product)
coupled with improved gold loan quality and greater thrust on collections emerging from rapidly improving microfinance segment
boosted the earnings for the quarter.

The share of new businesses (microfinance, mortgage and housing and commercial vehicle financing) increased to 15% in
Q3FY17 of overall AUMs.

Asset quality largely stable: With stressed legacy gold portfolio behind and MGFL focusing on shorter tenure products, laying
greater emphasis upon regular interest collections and tightened recognition norms, the asset quality stands as one of the best in
the industry.

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Around The World

Weekly Market Recap :
A divergent trend was witnessed as the barometer index, the S&P BSE Sensex, settled with marginal gains while the Nifty
50 index registered minor losses on Thirsday, 22 June 2017. The Sensex, rose 7.10 points or 0.02% to settle at 31,290.74,
its highest closing level since 20 June 2017.The market may remain volatile on account of F&O expiry.

On the global front, growth in the eurozone's manufacturing and services sector slowed in June, data showed on Friday, 23
June 2017. Markit's flash eurozone PMI composite output index came in at 55.7 in June, a five-month low. A report on
weekly jobless claims showed that fewer than 250,000 Americans applied for unemployment benefits in mid-June.

Market Eye Week ahead :

The implementation of landmark tax reform Goods and Service Tax (GST) will be closely watched. On the night of 30 June
2017, there will be a special function in the Central Hall of Parliament House to the change in tax structure and implementa-
tion of GST. The infrastructure output data for May 2017 will be declared by government on Friday, 30 June 2017.

On the global front, the US durable goods orders for May 2017 will be released on Monday, 26 June 2017. The US GDP
growth rate will be declared on Thursday, 29 June 2017. The US economy expanded an annualized 1.2% on quarter in the
first three months of 2017, better than the advance estimate of 0.7% growth.

Key Events / Factors to Watch

1. Mon :AGM: Cadila healthcare
2. Tue : Dividend: Apollo tyre, Capital First
3. Wed : Dividdend: Allahabad bk, Can fin Homes, UCO Bk
4. Thu: Dividends: HDFC Bk, Sterlite techno
5. Fri : Dividend: Heromoto, JSW Energy, Tata coffee.

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 Reliance Midcap and Small Cap Fund
Sector Weights Fund (%)
Financial 18.15
AMC Reliance Nippon Life Asset Management Co Ltd
Energy 5.43
Type Open Ended & Equity Mid Cap Automobile 5.85
Healthcare 8.49
Category Open-ended
FMCG 8.54
Launch Date December 2006 Services 12.36
Technology 3.05
Fund Manager Sunil Singhania & Samir Rachh
Construction 11.59
Net Assets (` Engineering 5.25
Rs. 2947.3 cr as on May 31, 2017
In crore )
Chemicals 12.57
History 2014 2015 2016 2017 Risk Analysis
Volatility Measures
NAV (Rs) 37.17 45.07 51.19 62.63
Standard Deviation 17.31
Total Return (%) 103.13 21.24 13.58 22.35 Sharpe Ratio 1.00
Beta 1.06
Rank (Fund/Category) 4/50 2/36 1/34 19/24
R-Squared 0.66
Alpha 11.16
52 Week High (Rs) 37.17 45.07 56.10 -

52 Week Low (Rs) 17.49 36.80 36.69 -

Composition (%)
Equity 95.94
Net Assets (Rs.Cr) 1623.67 2233.01 4115.12 4966.78 Debt 4.33
Cash -0.27
Expense Ratio (%) 1.91 1.71 1.79 -

Fund Performance v/s Bse 200 Fund Style

Investment Style
Growth Blend Value
Large
Capitalization

Medium

Small

Fund
S&p bse Mid small cap
(Rebased to 10,000) Source : - www.valueresearchonline.com

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Commodity Corner

BULLION
FUNDAMENTAL: Bullion prices dropped as the dollar strengthened despite a market fraught with the type of political drama
that would ordinarily have offered a boost to precious metals. Pressure also seen after British elections failed to deliver a
clear majority for Prime Minister Theresa May, knocking the pound sharply lower and helping lift the dollar index to its high-
est since late May. Prices failed to capitalize on renewed geopolitical uncertainty, as the UK general election resulted in a
hung parliament, sparking uncertainty as to whether Brexit talks would be delayed. With the start of Brexit talks less than
two weeks away, investors fear that Theresa Mays faces a difficult start to Brexit negotiations in the wake of the general
election result, as her Conservative party lost the majority in parliament it held prior to the election.

RECOMMENDATION : BUY GOLD @ 28500 SL 28200 TGT 28950-29200 BUY SILVER @38000 SL 37400 TGT 38560-39200

BASE METALS
FUNDAMENTAL: On weekly basis, base metals ended with mixed node recovering from lows, where copper prices gained
by 2.75 percent helped by concerns over supply from Chile, recent data pointing to robust import demand in China and
falling stocks of the metal. Copper inventories in LME warehouses fell 9475 tonnes on Friday to 276,875 tonnes and are
down almost 20 percent from a seven-month high May. Copper mines in global major copper producing regions Chile and
Indonesia have suffered continuous strikes since the beginning of 2017, raising market concerns on copper supply. How-
ever, according to China Customs, imported copper concentrate supply is ample in Chinas market for now as the strikes
make limited impact on copper supply actually. Workers at Freeport-McMoRan Incs Grasberg copper mine in Indonesia an-
nounced to launch strike in May, following a 43-day strike at Chilean Escondida copper mine.

RECOMMENDATION : BUY ALUMINIUM @ 120 SL 118 TGT 122.5-124 BUY COPPER @ 370 SL 362 TGT 378-386 BUY ZINC @ 171 SL 166
TGT 178-184 BUY NICKEL @ 575 SL 560 TGT 595-610.

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 @ 32850 SL 2950 TGT 2700 BUY NAT.GAS @ 184 SL 180 TGT 190-198.

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Commodity Corner
Forex Corner
Market Recap :

The Indian rupee on Tuesday strengthened mar-

ginally against the US dollar in mid day trade.

The 10-year bond yield was at 6.457% compared

to its previous close of 6.460%. Bond yields and
prices move in opposite directions.

The dollar index, which measures the US cur-

rencys strength against major currencies, was
trading at 97.397, down 0.03% from its previous
close of 97.426.

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 64.65-64.50 with SL of 66.10 for target of
64.20-64.00.

USD/INR
Level S2 S1 CP R1 R2 High Low Close
USD/INR 64.20 64.37 64.55 64.72 64.90 64.74 64.39 64.53

EUR/INR
Level S2 S1 CP R1 R2 High Low Close
EUR/INR 71.72 71.90 72.13 72.31 72.54 72.36 71.95 72.08

GBP/INR
Level S2 S1 CP R1 R2 High Low Close
GBP/INR 80.98 81.58 82.11 82.63 81.50 82.19 81.50 82.19

JPY/INR
Level S2 S1 CP R1 R2 High Low Close
JPY/INR 57.56 57.79 58.03 58.26 58.50 58.27 57.80 58.02

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J Street Recommendations Report Card

Nifty last week opened at 9626.40, attained a high at 9698.85 and moved down to a low of 9565.30. Nifty fi-
nally closed the week at 9574.95 thereby showed a net fall on 0.14% on week to week basis.Traders long and hold-
ing the same can revise the stop loss to 9547.Resistance will be at 9613-9660-9710.Support is at 9547. On fall and
close below 9547 expect 9527-9479-9393 to be tested.
Top Fundamental Stocks
Absolute
Stocks Rec. Date CMP on Rec. CMP Target Return @ Status
CMP
DHFL Ltd 27/06/2017 430 430 530 0% Buy

Manappuram Finance 30/05/2017 87 94 130 8% Accumulate

Godrej Properties 12/05/2017 508 524 630 3% Buy

Tvs Motor 24/04/2017 485 529 630 9% Buy

DCB Bank 17/04/2017 175 195 310 11% Accumulate

REC Ltd 27/03/2017 175 170 240 -3% Buy

Petronet 20/02/2017 400 435 490 9% Buy

Escorts 06/02/2017 383 657 790 72% Buy

Edelweiss financial 16/01/2015 117 187 235 60% Accumulate
IOC Ltd 27/02/2017 376 385 490 2% Buy

Marico 20/02/2016 255 311 370 22% Buy

Voltamp transformer 13/02/2017 980 1241 1360 27% Buy

Mothersumi 03/04/2017 376 462 495 23% Accumulate

Lic hsg Finc 27/03/2017 608 750 830 23% Buy

Asian Paints 10/03/2017 1030 1136 1260 10% Buy

Nbcc india 20/03/2017 175 205 225 17% Buy

Alembic Pharmaceuti-
30/08/2016 630 506 732 -20% Buy
cals
Wonderla 25/04/2016 387 369 498 -5% Buy
Sadbhav Engineering
04/05/2015 298 306 430 3% Buy
Ltd.
M&M 12/01/2015 1238 1367 1450 10% Profit Book

If you buy the things you dont need, soon you need to sell the things you need.

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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-May-17 AMARAJABAT BUY 917 928 922.50 941.00 894 TA 4.1

2 15-May-17 TVSMOTORS BUY 510 520 515.00 543.00 497 TA 4.3

3 16-May-17 GRASIM BUY 1166 1180 1173.00 1226.00 1134 SL -3.8

4 17-May-17 RAYMOND BUY 785 795 790.00 828.00 763 SL -3.6

5 18-May-17 PIDILITIND BUY 770 780 775.00 812.00 749 TA 4.2

6 19-May-17 WIPRO BUY 520 530 525.00 551.00 503 TA 4.4

7 22-May-17 MOTHERSUMI BUY 425 435 430.00 452.00 411 TA 4.1

8 23-May-17 ZEEL BUY 512 522 517.00 545.00 498 EXPIRE .

9 24-May-17 M&M BUY 1320 1335 1327.50 1387.00 1282 TA 4.2

10 25-May-17 MINDTREE BUY 508 514 511.00 536.00 492 TA 4.3

11 29-May-17 TATASTEEL BUY 507 514 510.50 535.00 491 EXPIRE .
HEROMO-
12 30-May-17 BUY 3650 3685 3667.50 3830.00 3544 TA 4.3
TOCO
13 31-May-17 GODREJIND BUY 608 614 611.00 638.00 589 TA 4.4

14 1-Jun-17 IBULHSGFIN BUY 1140 1160 1150.00 1205.00 1108 SL -3.8

15 2-Jun-17 M&M BUY 1420 1440 1430.00 1498.00 1378 EXPIRE .
16 5-Jun-17 ULTRACEMCO BUY 4200 4250 4225.00 4460.00 4070 SL -3.9

17 6-Jun-17 MINDTREE BUY 550 558 554.00 580.00 534 SL -3.8

18 7-Jun-17 KSCL BUY 644 653 648.50 678.00 624 TA 4.4

19 8-Jun-17 HAVELLS BUY 502 512 507.00 534.00 488 SL -3.8

20 9-Jun-17 SIEMENS BUY 1330 1344 1337.00 1396.00 1294 TA 4.2
21 12-Jun-17 LICHSGFIN BUY 756 764 760.00 792.00 738 TA 4.4

22 13-Jun-17 PEL BUY 3040 3080 3060.00 3200.00 2950 SL -3.7

23 14-Jun-17 DHFL BUY 435 442 438.50 459.00 422 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 15-Jun-17 GODREJIND BUY 640 648 644.00 676.00 620 OPEN .

25 16-Jun-17 BAJFINANCE BUY 1395 1415 1405.00 1472.00 1358 OPEN .

26 19-Jun-17 INDIACEM BUY 217 222 219.50 232.00 211 OPEN .

27 20-Jun-17 J&KBANK BUY 92 95 93.50 103.00 88 OPEN .

28 21-Jun-17 DHFL BUY 454 462 458.00 480.00 441 OPEN .

29 22-Jun-17 ICIL BUY 183 186 184.50 194.00 178 OPEN .

30 23-Jun-17 SIEMENS BUY 1346 1365 1355.50 1421.00 1307 OPEN .

STATUS CALLS RATIO

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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