Vol.

: 358
09 OCT ,2017

Index

Market View 1
MARKET VIEW
Company Update 2
M ARKET HAS FOUND SUPPORT NE AR 970 0
Around the
Economy 3 As we have discussed last time, certain macro level concerns
have arise in last couple of months. Due to this and high valuations of
Knowledge Corner 3
Indian stocks FIIs have started liquidating Indian stocks and investing in
Mutual Fund 4 cheap peer markets. Only earning recovery and capex in private sector
can resolve many macro issues. The result of second quarter will be re-
Commodity Corner 5
leased shortly and will be of much importance from the view point of the
Forex Corner 6 market. Present Government seems to be responsive and flexible. The
practical problems being faced by the business community are ad-
Report Card 7
dressed by GST council and many suggestions are being incorporated in

Short Term Call Status 8 GST. Some fund houses and analysts are expecting gradual earning re-
Special Contributors
Kunal Shah
Dhaval Ghodasara
covery from this quarter. Under the circumstances it is extremely neces-
sary to remain stock specific in the market. The Government seems to
have taken the cognizance of the growing macro concern and is trying to
resolve the same with necessary steps.
Technically the rise and close above 9950 is a positive signal and
any sustainable rise above 9990 is positive for the market. There is
cluster of supports at 9940-9875-9700. On positive side, the resistances
are at 10100-10200 range. The sustainability of the market largely de-
pend on the economic data.

For suggestions, feedback

and queries
jstreet@jhaveritrade.com

Kamal Jhaveri
MD- Jhaveri Securities

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09 OCT ,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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09 OCT ,2017

Around The World

Weekly Market Recap :
The IMD said in its report that the monsoon was 5% below the normal monsoon. Auto stocks were mixed. Maruti
Suzuki India gained 0.72%. The company said its total sales rose 9.3%.Bajaj Auto rose 0.93% The company said
its total sales rose 14%.Mahindra & Mahindra rose 3.85%. The company said that total auto sales rose 16%.

The Nikkei India Manufacturing Purchasing Managers' Index, or PMI, stood at 51.2 in September, remaining un-
changed from August. The Reserve Bank of India (RBI) kept the policy repo rate under the liquidity adjustment fa-
cility (LAF) unchanged at 6%.Consequently, the reverse repo rate under the LAF remains at 5.75%, and the mar-
ginal standing facility (MSF) rate and the bank rate at 6.25%.

Market Eye Week ahead :

Indian Energy Exchange is coming up with an initial public offer the IPO opens on Monday, 9 October 2017 and
closes on Wednesday, 11 October 2017. On the macro front, on Thursday, 12 October 2017, the government will
announce industrial production data for August The government will also announce after market hours on Thurs-
day, 12 October 2017, inflation data based on consumer price index (CPI) for September 2017.

On the global front, US markets remain closed on Monday, 9 October 2017, on account of holiday for Columbus
Day. The Federal Open Market Committee will issue minutes of its last meet on Wednesday, 11 October 2017. US
retail sales for October will be announced on Friday, 13 October 2017.

Key Events / Factors to Watch

1. Mon : -
2. Tue : Splits:Heritage foods
3. Wed : Result:Lakshmi vilas,Network 18,Tv 18
4. Thu: Result: Bajaj crop, cyient,TCS, Indusind bank
5. Fri : Result: KTK bank, MCX Ltd

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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09 OCT ,2017

Mutual Fund Corner

Top 10 Sector Break-Ups
Fund Name
Scheme Name Motilal Oswal focused Multicap 35 fund
Sector Weights Fund (%)
Financial 45.63
AMC Motilal Oswal Asset Management Company Ltd
Energy 17.97
Type Open Ended & Equity Multicap Automobile 13.02
Healthcare 10.11
Category Open-ended
FMCG 8.66
Launch Date April 2014 Services 3.48
-
Fund Manager Gautam sinha Roy
-
Net Assets (` -
Rs.8677.8cr as on Aug31,2017
In crore )
-
History 2014 2015 2016 2017 Risk Analysis
Volatility Measures
NAV (Rs) 15.34 17.58 19.07 26.41
Standard Deviation 15.07
Total Return (%) - 14.60 8.45 38.52 Sharpe Ratio 1.44
Beta 0.89
Rank (Fund/Category) - 2/173 32/143 8/127
R-Squared 0.62
Alpha 18.36
52 Week High (Rs) 15.43 18.77 20.98 26.70

52 Week Low (Rs) 9.94 15.15 15.14 19.11 Composition (%)

Equity 98.86
Net Assets (Rs.Cr) 659.04 2958.64 4543.33 6643.07 Debt 0.00

Expense Ratio (%) 2.32 2.41 2.44 - Cash 1.14

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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Vol.: 358
09 OCT ,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 : BUY GOLD @ 29600 SL 29300 TGT 30100-400 BUY SILVER @39850 SL 39000 TGT 40600-41200

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 : BUY ALUMINIUM @ 138 SL 134 TGT 143-47 BUY COPPER @ 433 SL 425 TGT 444-454 BUY ZINC @ 212 SL 208
TGT 218 BUY NICKEL @ 690 SL 670 TGT 710-30.

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 @ 3260 SL 3380 TGT 3180-3100 SELL NAT.GAS @ 195 SL 202 TGT 188-182.

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09 OCT ,2017

Commodity Corner
Forex Corner
Market Recap :

Indian rupee on Monday was trading little

changed against the US dollar ahead of key mac-
roeconomic data due on 12 October.

The 10-year bond yield was at 6.758%, compared

to its previous close of 6.757%. Bond yields and
prices move in opposite directions.

The dollar index, which measures the US cur-

rencys strength against major currencies, was
trading at 93.742, down 0.06% from its previous
close of 93.80.

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 66.20-66.00 with SL of 67.03 for target of
65.02-64.68.

USD/INR
Level S2 S1 CP R1 R2 High Low Close
USD/INR 64.64 65.02 65.33 65.70 66.01 65.41 65.27 65.36

EUR/INR
Level S2 S1 CP R1 R2 High Low Close
EUR/INR 75.74 76.24 76.71 77.21 77.68 77.28 77.40 77.30

GBP/INR
Level S2 S1 CP R1 R2 High Low Close
GBP/INR 83.70 84.57 86.06 86.93 88.93 86.80 85.90 86.06

JPY/INR
Level S2 S1 CP R1 R2 High Low Close
JPY/INR 57.32 57.70 57.97 58.35 58.62 58.40 57.90 58.60

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Vol.: 358
09 OCT ,2017

J Street Recommendations Report Card

Nifty last week opened at 9893.29, attained a low at 9831.04 and moved up to 9989.34. Nifty closed the week at 9979 thereby showed a
net rise of 191 points on week to week basis. In this process the stop loss of short 9961 was crossed. Further downside momentum and
major correction phase will resume if fall and close below 9687 is witnessed on weekly closing with bearish candle. Resistance will be
see at higher range of 10066-10178. Further rally is above 10178 closing and till then rise to higher range will have sustainability
issues and uncertainty at higher range psychologically.
Top Fundamental Stocks
Absolute
Stocks Rec. Date CMP on Rec. CMP Target Return @ Status
CMP

KEC International 11/09/2017 310 308 384 -1% Accumulate

Maruti Suzuki 30/06/2017 7220 7895 9000 9% Accumulate

DHFL Ltd 27/06/2017 430 543 590 26% Buy

Manappuram Fi-
30/05/2017 87 102 130 17% Buy
nance
Godrej Properties 12/05/2017 508 650 630 3% Accumulate

Tvs Motor 24/04/2017 485 670 650 38% Buy

DCB Bank 17/04/2017 175 187 310 7% Buy

REC Ltd 27/03/2017 175 152 240 -13% Buy

Petronet 20/02/2017 200 242 290 21% Accumulate

Escorts 06/02/2017 410 698 790 70% Buy

Edelweiss financial 16/11/2016 117 264 275 126% Buy

IOC Ltd 27/02/2017 376 416 490 11% Buy

Marico 20/02/2016 255 315 370 24% Accumulate

Voltamp trans-
13/02/2017 980 1146 1360 17% Buy
former
Mothersumi 03/04/2017 300 342 495 14% Buy

Lic hsg Finc 27/03/2017 608 664 830 9% Buy

Asian Paints 10/03/2017 1030 1164 1260 13% Buy

Nbcc india 20/03/2017 175 221 225 26% Buy

M&M 12/01/2015 1238 1307 1450 6% Buy

A stock market is a place where people know the price of everything , but the value of Nothing.

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09 OCT ,2017

J Street Short Term Call Status

Sr. BUY/ TRIGGER %
No.
DATE STOCK RANGE RANGE TGT SL STATUS
SELL PRICE RETURN
1 22-Aug-17 AMBUJACEM BUY 272 276 274.00 287.00 265 TA 4.4

2 23-Aug-17 DHFL BUY 455 462 458.50 480.00 443 TA 4.6

3 24-Aug-17 BEL BUY 181 184 182.50 194.00 173 TA 4.2

4 28-Aug-17 KAJARIACER BUY 695 707 701.00 742.00 676 TA 4.2

5 29-Aug-17 HINDUNILVR BUY 1190 1210 1200.00 1260.00 1162 TA 4.4

6 30-Aug-17 GSFC BUY 139 142 140.50 151.00 135 TA 4.2

7 31-Aug-17 PEL BUY 2700 2730 2715.00 2848.00 2641 TA 4.6

8 4-Sep-17 ASIANPAINT BUY 1200 1220 1210.00 1276.00 1165 TA 4.1

9 5-Sep-17 ARVIND BUY 387 392 389.50 408.00 379 TA 4.4

10 6-Sep-17 DALMIABHA BUY 2735 2760 2747.50 2870.00 2665 SL -3.2

11 7-Sep-17 TATAGLOBAL BUY 203 208 205.50 220.00 196 TA `4.2
12 8-Sep-17 CADILAHC BUY 508 515 511.50 540.00 493 SL -3.6

13 11-Sep-17 ASHOKLEY BUY 114 117 115.50 125.00 110 TA 4.2

14 12-Sep-17 BERGEPAINT BUY 264 268 266.00 283.00 254 SL -3.6

15 13-Sep-17 CAPF BUY 800 812 806.00 858.00 772 SL -3.4
16 14-Sep-17 SUNPHRMA BUY 500 512 506.00 536.00 481 TA 3.6

17 15-Sep-17 KANSAINER BUY 500 512 506.00 540.00 483 SL -3.8

18 18-Sep-17 L&TFIN BUY 203 207 205.00 216.00 198 EXIT .

19 19-Sep-17 BATAINDIA BUY 728 740 734.00 760.00 707 TA 3.6

20 20-Sep-17 KAJARIACER BUY 728 740 734.00 778.00 706 SL -3.8
21 21-Sep-17 KTKBANK BUY 162 165 163.50 174.00 157 SL -3.8

22 22-Sep-17 TECHM BUY 454 462 458.00 486.00 443 EXIT .

23 25-Sep-17 VAKRANGEE BUY 510 520 515.00 545.00 492 OPEN

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Vol.: 358
09 OCT ,2017

J Street Short Term Call Status

BUY/ TRIGGER %
Sr. No. DATE STOCK RANGE RANGE TGT SL STATUS
SELL PRICE RETURN
24 26-Sep-17 GODREJIND BUY 568 578 573.00 608.00 551 OPEN

25 27-Sep-17 HEXAWARE BUY 267 272 269.50 284.00 260 OPEN

26 28-Sep-17 OIL BUY 346 352 349.00 368.00 338 OPEN

27 3-Oct-17 ASHOKLEY BUY 121 125 123.00 132.00 117 OPEN

28 4-Oct-17 MINDTREE BUY 475 483 479.00 512.00 464 OPEN

29 5-Oct-17 KOTAKBANK BUY 1020 1032 1026.00 1071.00 998 OPEN

30 6-Oct-17 CENTURYTEX BUY 1270 1285 1277.50 1336.00 1234 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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