Vol.

: 338
24 APR ,2017

Index

Market View 1
MARKET VIEW
Company Update 2 AMIDST THE GEOPOLITICAL TENSION INDIA IS SET TO BE RERATED

Around the
The Indian growth story started from 1991 onwards gets a real boost by the present Government in
Economy 3
form of some fundamental and far reaching reforms. Some reforms like demonetization and digitization
Knowledge Corner 3 of monetary system are unprecedented and the world has never seen such mammoth exercise in the
history of mankind. Taking into account the improving economic fundamentals, IMF and rating agencies
Mutual Fund 4 like S&P, Moodys and FITCH are in all probabilities set to upgrade the sovereign rating of India. Mean-
while It also said that growth will be also driven by increase in both domestic and international trade be-
Commodity Corner 5
cause GST is expected to increase the international competitiveness of Indian firms, helping expand

Forex Corner 6 external trade by 32%. It also points out that as a first order effect, the GST lowers internal trade barri-
ers, which improves internal trade by 29%. The research paper is authored by Eva Van Leemput and
Report Card 7 Allen A. Wiencek and published on March 27th in US. The rise in internal and external trade is expected
to be carried by a surge in manufacturing production of 14%. The process of conversion from unofficial
Short Term Call Status 8
to official economy will broaden the tax base and increase the tax revenues of The Government.

Editor & Contributor

Darshana Mishra
Considering the above development, the market will get a real kick if the sovereign rating of India is
improved. The FIIs, sensing the geopolitical tension are in risk off mode and booking profits in Indian
Special Contributors market since last one week. One should remain cautious considering the development in Syria and Ko-
Kunal Shah rean Peninsula.
Dhaval Ghodasara

Technically there is a strong support at 9100-9000 and strong resistance at 9160 and 9220.

For suggestions, feedback

and queries Kamal Jhaveri
jstreet@jhaveritrade.com
MD- Jhaveri Securities

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24 APR ,2017

Company Update : GAIL LTD

Company Basics Financial Basics Share Holding Pattern
BSE Code 532155 FV (`) 10.00 Holder's Name % Holding
EPS (`) (TTM) 23.73 Promoter 54.97
NSE Symbol GAIL P/E (x) (TTM) 17.23 Public 45.03

EQUITY (` in Cr.) 169 P/BV (x) (TTM) 2.26

MKT.CAP (` in Cr.) 69165.64

Outlook and valuation : We recommend BUY on the stock on account of petrochemical business showing
improvement due to lower raw material cost. Increased margins by renewal of RasGas contract will be an
added benefit. We target stock to trade at EV/EBITDA of 7.9x in FY17E. ( Target Price: Rs. 452)

Company Overview :
GAIL (India) Ltd is Indias flagship Natural Gas Company, integrating all aspects of the Natural Gas value chain
(including Exploration & Production, Processing, Transmission, Distribution and Marketing) and its related ser-
vices. The company is an integrated energy company along the Natural Gas value chain with global footprints.
They have interest in the business of natural gas, LPG, Liquid Hydrocarbons and Petrochemicals. They have
also diversified into Exploration & Production, City Gas Distribution and are steadily developing their overseas
presence.

Investment rationale for GAIL Ltd

Leading integrated natural gas company.

Strong presence in city gas distribution business through Subsidiary MGL & IGL.

Extension of its various Pipelines routes will be added trigger point.

Govt. Planning of providing gas to all the rural areas in the coming 1-2 years.

Lower prices of domestic natural gas for LPG, LHC business augur well for segments profitability.

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Around The World

Weekly Market Recap :

India Meteorological Department (IMD) in its first stage forecast of southwest monsoon for 2017, on 18 April 2017, said that quantita-
tively, the monsoon seasonal rainfall is likely to be 96% of the long period average (LPA) with an error of 5%. Forecast assessment sug-
gests 38% of probability for near normal monsoon rainfall, it added.

Investors maintained caution ahead of elections in France over the weekend and as geopolitical tensions notably those between the US
and North Korea weighed on sentiment.

Market Eye Week ahead :

The market may remain volatile as traders roll over positions in the futures & options (F&O) segment from the near month
April 2017 series to May 2017 series. The near month April 2017 derivatives contract expire on Thursday, 27. State-run oil
marketing companies (PSU OMCs) and auto stocks will be in focus as PSU oil marketing companies will undertake fuel price
revision during the next weekend.

On the global front, the world is currently focused on France where voters are heading to the polls Sunday, 23 April 2017, to
choose their next president. France is the second-largest economy in the euro zone and one of the seven biggest across the
world. For the first time in 15 years, the far right has realistic chances of getting into power.

Key Events / Factors to Watch

1. Mon : Result: Reliance Ind, IBull Hsg Finc, Rallis India, Ultratech Cement.
2. Tue : Result: Axis bank, Can fin, Wipro, LIC Hsg finc
3. Wed : Result: Tata sponge, Sterlite tech,
4. Thu: Result: Maruti, Rel.Capital, TVS Motor, Tata Elxsi
5. Fri : Result: Ambuja Cements, Ceat, Federal Bank, Raymond Ltd.

Knowledge Corner :
EARNING PER SHARE (EPS)

The basic measurement of earnings is earnings per share or EPS. This measurement divides the earnings by the num-
ber of outstanding shares. Earnings (or growth towards positive earnings) tell you how healthy a company is.

Why EPS?
The reason you reduce earnings to a per share basis is to compare it with another company. Its important to note here
that the EPS is helpful in comparing one company to another, assuming they are competing companies of the same cate-
gory.

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24 APR ,2017

Mutual Fund Corner

Top 10 Sector Break-Ups
Fund Name
Sector Weights Fund (%)
Scheme Name MIREA ASSET EMERGINF BLUE CHIP
Financial 30.91
AMC Mirea Asset Global Investment India Ltd Automobile 4.37
Energy 10.82
Type Open Ended & Equity Mid Cap
Healthcare 6.61
Category Open-ended FMCG 6.50
Launch Date May 2000 Technology 7.39
Metals 6.71
Fund Manager Neelesh Surana, Since May 2010 Construction 7.01
Net Assets (` Diversified 5.83
Rs. 3531.8 crore as on Mar 31, 2017
In crore ) Chemicals 3.51
History 2014 2015 2016 2017 Risk Analysis
Volatility Measures
NAV (Rs) 27.87 31.80 35.66 43.65
Standard Deviation 15.87
Total Return (%) 84.62 14.08 12.17 22.39 Sharpe Ratio 1.71
Beta 0.97
Rank (Fund/Category) 7/78 10/71 10/79 21/81 0.72
R-Squared
Alpha 20.60
52 Week High (Rs) 27.87 32.46 39.62 -

52 Week Low (Rs) 14.60 27.37 27.04 - Composition (%)

Equity 95.51
Net Assets (Rs.Cr) 579.62 1054.32 2906.88 3204.87 Debt 2.69
Cash 1.80
Expense Ratio (%) 2.60 2.55 2.39 -

Fund Performance v/s Nifty 500 Fund Style

Investment Style
Growth Blend Value
Large
Capitalization

Medium

Small

Fund
Nifty Mid cap100
(Rebased to 10,000) Source : - www.valueresearchonline.com

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24 APR ,2017

Commodity Corner

BULLION
FUNDAMENTAL: Bullion gained as concerns over North Korea and the Middle East sent investors scurrying for the safety of bullion and
the dollar wilted. Fears of a new weapons test by North Korea as a U.S. carrier group sailed towards the region, as well as worries about
the forthcoming French presidential election, also kept investors on edge. In an interview in the Wall Street Journal Trump said the U.S.
dollar is getting too strong and would eventually hurt the economy. Trump also said he would prefer the Federal Reserve keep interest
rates low. Consumer sentiment in the U.S. has unexpectedly improved in the month of April, according to a report released by the Uni-
versity of Michigan. The report said the consumer sentiment index rose to 98.0 in April from 96.9 in March. First-time claims for U.S. un-
employment benefits unexpectedly edged lower in the week ended April 8th, according to a report released by the Labor Department.
The report said initial jobless claims dipped to 234,000, a decrease of 1,000 from the previous week's revised level of 235,000. The La-
bor Department said the less volatile four-week moving average also slipped to 247,250, a decrease of 3,000 from the previous week's
revised average of 250,250. Separate reports showed that U.S. producer prices fell in March for the first time in seven months, but re-
corded the largest year-on-year increase in five years.

RECOMMENDATION : BUY GOLD @ 29300 SL 29000 TGT 29650-29000 BUY SILVER @42300 SL 41400 TGT 43100-43800

BASE METALS
FUNDAMENTAL: Base metals prices last week ended with losses where nickel prices dropped the most by more than 4.5% shrugging off
a tentative recovery in the broader financial markets as geopolitical tensions and fading hopes for a boost to U.S. demand pressured
prices. Zinc prices dropped by around 1.95% as data showed Chinese mine supply surged by nearly a fifth last year. The global zinc
market moved into a surplus of 19,800 tonnes in February from a deficit of 22,300 tonnes in January, data from ILZSG showed. In the
first two months of the year, the zinc market was in a deficit of 2,000 tonnes versus a surplus of 44,000 tonnes in the same period last
year. Zinc continues to see plenty of sellers lined up on every rally amid increasingly aggressive CTA selling and ongoing long liquida-
tion. Copper has faltered after BHP Billiton restarted production in Chile last week and Freeport McMoRan said it was waiting for final
details on a temporary export permit in Indonesia. Copper has faltered after BHP Billiton restarted production in Chile last week and
Freeport McMoRan said it was waiting for final details on a temporary export permit in Indonesia.

RECOMMENDATION : BUY ALUMINIUM @ 125.5 SL 122.5 TGT 127.5-129 SELL COPPER @ 372 SL 378 TGT 364-358 SELL ZINC @ 171 SL
175 TGT 167-162 BUY NICKEL @ 618 SL 600 TGT 635-660

ENERGY

FUNDAMENTAL : Crude oil ended with around 2% gains on weekly basis after the IEA said the market was nearing balance, while data
showing higher U.S. production kept gains in check. The IEA, said supply and demand in the global oil market was close to matching
after a fall in stockpiles in developed countries in March. "It can be argued confidently that the market is already very close to balance,"
the agency said in its monthly report. The market has been oversupplied for three years, prompting members of the Organization of the
Petroleum Exporting Countries and some non-OPEC producers to agree to cut output in the first six months of 2017 to rein in the glut.
OPEC data showed members of the group had cut March output beyond the level they had promised. The IEA said oil stocks in the Or-
ganisation for Economic Cooperation and Development (OECD) industrialized countries fell by 17.2 million barrels in March, although
inventories were still 300 million barrels above the five-year average. OPEC meets on May 25 to consider extending the cuts beyond
June. Saudi Arabia, Kuwait and most other OPEC members are leaning towards this if agreement is reached with other producers,
OPEC sources told Reuters last month.

RECOMMENDATION : BUY CRUDE @ 3350 SL 3260 TGT 3450-3520 SELL NAT.GAS @ 212 SL 220 TGT 202-192

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Commodity Corner
Forex Corner
Market Recap :

The Indian rupee on Monday strengthened

against the US dollar following gains in the Asian
currencies markets after the outcome of the first
round of the French Presidential election.

The 10-year bond yield was trading at 6.943%

compared to its previous close of 6.924%. Bond
yields and prices move in opposite directions. .

The dollar index, which measures the US cur-

rencys strength against major currencies, was
trading at 99.027, down 0.95% from its previous
close of 99.977.

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 64.78-64.71 with SL of 65.15 for target of
64.43-64.21.

USD/INR
Level S2 S1 CP R1 R2 High Low Close
USD/INR 64.21 64.43 64.59 64.81 64.97 64.76 64.38 64.64

EUR/INR
Level S2 S1 CP R1 R2 High Low Close
EUR/INR 67.83 68.49 69.15 69.75 70.35 69.69 68.43 69.15
GBP/INR
Level S2 S1 CP R1 R2 High Low Close
GBP/INR 79.81 81.23 82.18 83.60 84.55 83.13 80.76 82.65

JPY/INR
Level S2 S1 CP R1 R2 High Low Close
JPY/INR 58.71 58.98 59.31 59.58 59.91 59.65 59.05 59.24

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J Street Recommendations Report Card

Nifty last week opened at 9144.75, attained a high at 9217.90 and fell to a low of 9075.15. Nifty finally closed the week at
9119.40 thereby showed a net fall of 31 point on week to week basis. We had suggested taking profits at higher range. The high
range mentioned was 9180-9216-9274. The high registered last week was 9217 and closed at 9119.40.Accumulation was indi-
cated at 9069-8977 range. The low registered last week was 9075.15.

Top Fundamental Stocks

Absolute
Stocks Rec. Date CMP on Rec. CMP Target Return @ Status
CMP
Petronet 20/02/2017 400 434 490 9% Buy

Escorts 06/02/2017 383 554 590 45% Buy

Edelweiss financial 16/01/2015 117 180 175 54% Accumulate

IOC Ltd 27/02/2017 376 421 470 12% Accumulate

Marico 20/02/2016 255 302 340 18% Buy

Voltamp transformer 13/02/2017 925 1237 1120 26% Buy

Mothersumi 03/04/2017 376 383 440 2% Buy

Lic hsg Finc 27/03/2017 608 648 720 7% Accumulate

Asian Paints 10/03/2017 1030 1068 1180 4% Accumulate
Nbcc india 20/03/2017 175 192 210 10% Buy
Alembic Pharmaceuti-
30/08/2016 630 609 732 -3% Buy
cals
Wonderla 25/04/2016 387 386 498 0% Buy

Mold Tek Pack 04/04/2016 49 53 179 7% Buy

Welspun syntex/AYM 23/11/2015 121 80 223 -34% Buy

Ahluwalia contracts 24/08/2015 235 359 368 53% Profit Book

Infinite Computer Sol. 20/07/2015 190 222 255 17% Profit Book
Sadbhav Engineering
04/05/2015 298 330 430 11% Buy
Ltd.
M&M 12/01/2015 1238 1264 1450 2% Buy
PTC India Fin. Ser. 07/07/2014 39 46 45 19% Profit book

The stock market is filled with individuals who know the price of everything, but the value of nothing. Phillip
Fisher
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Vol.: 338
24 APR ,2017

J Street Short Term Call Status

Sr. BUY/ TRIGGER %
No.
DATE STOCK RANGE RANGE TGT SL STATUS
SELL PRICE RETURN
1 7-Mar-17 LICHSGFIN BUY 560 570 565.00 594.00 546 TA 5.1
2 8-Mar-17 COLPAL BUY 925 935 930.00 972.00 898 TA 4.6
3 9-Mar-17 ZEEL BUY 507 516 511.50 538.00 491 TA 4.2
4 10-Mar-17 UPL BUY 705 715 710.00 744.00 686 TA 4.1
5 14-Mar-17 JUBLFOOD BUY 1064 1080 1072.00 1127.00 1028 TA 4.4
NA-
6 15-Mar-17
TIONALALUM
BUY 72 73 72.50 81.00 66 EXPIRE .

7 16-Mar-17 JINDALPOLY BUY 348 352 350.00 386.00 315 TA 4.6

8 17-Mar-17 IBULHSGFIN BUY 940 954 947.00 1004.00 912 SL -3.7
9 20-Mar-17 HAVELLS BUY 438 444 441.00 460.00 425 TA 4.4
10 21-Mar-17 CUMMINSIND BUY 900 915 907.50 951.00 874 TA 4.6
11 22-Mar-17 GRASIM BUY 1078 1093 1085.50 1136.00 1044 SL -3.6
12 23-Mar-17 WIPRO BUY 495 523 509.00 523.00 481 SL -3.5

13 24-Mar-17 JETAIERWAYS BUY 476 483 479.50 502.00 461 TA 4.8

14 27-Mar-17 CUMMINSIND BUY 912 922 917.00 958.00 885 TA 4.8

15 28-Mar-17 PETRONET BUY 402 410 406.00 428.00 388 TA 4.7
16 29-Mar-17 ZEEL BUY 525 535 530.00 560.00 507 EXPIRE .

17 30-Mar-17 ASIANPAINT BUY 1060 1075 1067.50 1120.00 1028 SL -3.7

18 3-Apr-17 LT BUY 1565 1580 1572.50 1640.00 1535 TA 4.6

19 5-Apr-17 JISLJALEQS BUY 98 100 99.00 106.00 94 TA 4.7

20 6-Apr-17 MOTHERSUMI BUY 378 382 380.00 398.00 366 OPEN
21 7-Apr-17 CADILAHC BUY 446 453 449.50 472.00 432 OPEN

22 10-Apr-17 INFRATEL BUY 345 350 347.50 364.00 333 TA 4.8

23 11-Apr-17 BATAINDIA BUY 565 575 570.00 600.00 550 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 12-Apr-17 IGL BUY 1025 1038 1031.50 1080.00 998 TA 4.6
INDUSIND-
25 13-Apr-17 BUY 1430 1455 1442.50 1520.00 1392 OPEN
BANK
26 17-Apr-17 PEL BUY 2230 2260 2245.00 2358.00 2162 TA 4.6

27 18-Apr-17 CENTURYTEX BUY 1120 1130 1125.00 1185.00 1084 OPEN

28 19-Apr-17 COALINIA SELL 283 278 280.50 267.00 290 OPEN

29 20-Apr-17 POWERGRID BUY 208 212 210.00 221.00 201 OPEN

30 21-Apr-17 APOLLOTYRE BUY 237 243 240.00 253.00 229 OPEN

STATUS CALLS RATIO

TA+PB 16 80.00

SL+EXIT 04 20.00

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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