Vol.

: 351
31 JULY ,2017

Index

Market View 1
STICK TO VALUE BUYING AT NIFTY 10000
Company Update 2
First of all it is an event to celebrate and be proud of when the NIFTY has crossed
Around the 10000 mark in current week. But at the same time, it is very important to stick to the
Economy 3
value buying concept while making fresh investments in the market. Domestic and For-
Knowledge Corner 3 eign Investors are pumping in huge amount on back of international rally, political sta-
bility, low inflation, expectation of fall in interest rate, expectation of Capex recovery,
Mutual Fund 4
expectation of earning recovery and on back of rolling out of GST and good monsoon.
Commodity Corner 5 In addition to that, lower bank FD interest rate, low or negative return in real estate and

Forex Corner 6 the fact that precious metal is no longer an investment avenue for the masses has lead
to the situation where equity and equity linked asset class is the favor of investors.
Report Card 7

Short Term Call Status 8 The investors need to study the valuations of the script before investing at current
level. The abundant liquidity in international and national market is the major driver of
current boom. Any reversal in policy by European Union and other developed countries
including US can reverse the liquidity flow and cause short term wealth destruction.
Special Contributors
Technically if the market sustains the level of 10000 it can go up to 10200-10500 with
Kunal Shah
Dhaval Ghodasara strong support at 9950 and 9790.

For suggestions, feedback

and queries
jstreet@jhaveritrade.com

Kamal Jhaveri
MD- Jhaveri Securities

-1-
Vol.: 351
31 JULY ,2017

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%.

- 2-
Vol.: 351
31 JULY ,2017

Around The World

Weekly Market Recap :
Market registered modest gains on positive global cues. The Nifty breached the psychologically important 10,000-mark for the first
time. Both the Sensex, and the Nifty, attained record high levels. A bout of volatility was witnessed as traders rolled over positions
in the futures & options (F&O) segment from July 2017 series to August 2017 series. NITI Aayog Vice Chairman Arvind Pana-
gariya was quoted as saying said that India is likely to clock a 7.5% economic growth in FY 2018.

Overseas, US Federal Reserve kept its benchmark interest rate unchanged after the conclusion of a two-day policy meeting on
Wednesday, 26 July 2017. The IMF in its latest World Economic Outlook WEO report on Monday, 24 July 2017, said that growth in
India is expected to pick up further in 2017 and 2018 with global economic recovery remaining on track on the back of better per-
forming emerging economies.

Market Eye Week ahead :

Markit Economics will unveil the result of a monthly survey on the performance of India's services sector in July 2017 at 10:30 IST on 3
August 2017. Markit Economics will unveil the result of a monthly survey on the performance of India's manufacturing sector in July 2017
at 10:30 IST on 1 August 2017. The major domestic event next week is RBI's monetary policy meeting scheduled at 14:30 IST on
Wednesday, 2 August 2017.

Eurozone consumer price index (CPI) data for July will be unveiled on Monday, 31 July 2017. US pending home sales data
for June will be unveiled on Monday, 31 July 2017.US ADP non-farm employment change data for July will be unveiled on
Wednesday, 2 August 2017.

Key Events / Factors to Watch

1. Mon : Result: Siemens, Concor,BEL, Indigo
2. Tue : Result: Marico, PEL, R.Defence Tech mahindra
3. Wed : Result:Voltas, KEC, Godrej prop, Edelweiss finc
4. Thu: Result: Ceat, BBTC, PNB Housing, IOC
5. Fri : Result : MRF, Sobha, Hind petro, Apollo tyre.

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.

- 3-
Vol.: 351
31 JULY ,2017

Mutual Fund Corner

Top 10 Sector Break-Ups
Fund Name
Scheme Name Birla sun life Top 100 Fund
Sector Weights Fund (%)
Financial 29.43
AMC Birla Sun Life Asset Management Company Ltd
Energy 10.41
Type Open Ended & Equity Large Cap Automobile 8.24
Healthcare 6.08
Category Open-ended
FMCG 9.58
Launch Date January 2013 Services 5.57
Technology 8.92
Fund Manager Mahesh Patil
Communication 7.03
Net Assets (` Metals 6.59
2984.8 Cr as on June 30, 2017
In crore )
Chemicals 4.35
History 2014 2015 2016 2017 Risk Analysis
Volatility Measures
NAV (Rs) 42.83 43.19 46.61 57.42
Standard Deviation 12.79
Total Return (%) 50.21 0.84 7.92 23.19 Sharpe Ratio 0.73
Beta 0.94
Rank (Fund/Category) 59/145 107/173 18/155 49/172
R-Squared 0.92
Alpha 5.82
52 Week High (Rs) 43.72 46.13 50.34 57.51

52 Week Low (Rs) 27.12 40.80 37.85 46.69 Composition (%)

Equity 94.44
Net Assets (Rs.Cr) 989.20 1808.18 2227.19 2835.39 Debt 5.80

Expense Ratio (%) - - - - Cash -0.24

Fund Performance v/s Nifty 50 Fund Style

Investment Style
Growth Blend Value
Large
Capitalization

Medium

Small

Fund
Nifty 50
(Rebased to 10,000) Source : - www.valueresearchonline.com

- 4-
Vol.: 351
31 JULY ,2017

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.

- 5-
Vol.: 351
31 JULY ,2017

Commodity Corner
Forex Corner
Market Recap :

The Indian rupee on Monday erased all the gains

and closed marginally lower against the US dollar
ahead of the Reserve Bank of India's bi-monthly
policy on 2 August.

The 10-year bond yield closed at 6.469%, com-

pared to its previous close of 6.463%. Bond yields
and prices move in opposite directions. .

The dollar index, which measures the US cur-

rencys strength against major currencies, was
trading at 93.414, down 0.17% from its previous
close of 93.259.

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 64.60-64.30 with SL of 65.00 for target of
64.00-63.80.

USD/INR
Level S2 S1 CP R1 R2 High Low Close
USD/INR 63.81 64.13 64.32 64.58 64.77 64.50 64.05 64.40

EUR/INR
Level S2 S1 CP R1 R2 High Low Close
EUR/INR 74.57 75.04 75.29 75.76 76.01 75.54 74.82 75.51

GBP/INR
Level S2 S1 CP R1 R2 High Low Close
GBP/INR 83.45 83.91 84.21 84.67 84.97 84.52 83.76 84.21

JPY/INR
Level S2 S1 CP R1 R2 High Low Close
JPY/INR 57.25 57.60 57.91 58.26 58.57 58.21 57.55 57.96

-- 46--
Vol.: 351
31 JULY ,2017

J Street Recommendations Report Card

Nifty last week opened at 9936.80, attained a low at 9919.60 and moved to high of 10114.85. Nifty finally closed the week
at 10014.50 thereby showed a net rise of 1.0% on week to week basis. Traders long and holding the same can maintain the stop loss
at 9792.Support will be at 9936-9886. Resistance will be at 10114.Furtherrise is above 10114. Traders can buy above 10114 with low
of the week as the stop loss or 10014 whichever is lower. Dip to support of 9936-9886 can be used for buying with a stop loss of 9792.
On sustained rise and close above 10131 then expect a rally to 10461 and 10707.

Top Fundamental Stocks

Absolute
Stocks Rec. Date CMP on Rec. CMP Target Return @ Status
CMP
DHFL Ltd 27/06/2017 430 460 530 7% Buy

Manappuram Finance 30/05/2017 87 105 130 21% Accumulate

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

Tvs Motor 24/04/2017 485 583 630 20% Buy

DCB Bank 17/04/2017 175 194 310 11% Accumulate

REC Ltd 27/03/2017 175 175 240 0% Buy

Petronet 20/02/2017 200 202 490 1% Buy

Escorts 06/02/2017 383 669 790 63% Buy

Edelweiss financial 16/01/2017 117 207 235 77% Accumulate
IOC Ltd 27/02/2017 376 373 490 -1% Buy

Marico 20/02/2017 255 333 370 31% Buy

Voltamp transformer 13/02/2017 980 1190 1360 21% Buy

Mothersumi 03/04/2017 300 324 495 8% Accumulate

Lic hsg Finc 27/03/2017 608 710 830 17% Buy

Asian Paints 10/03/2017 1030 1156 1260 12% Buy

Nbcc india 20/03/2017 175 211 225 21% Buy

Alembic Pharmaceuti-
30/08/2016 630 530 732 -16% Buy
cals
Wonderla 25/04/2016 387 354 498 -9% Buy
Sadbhav Engineering
04/05/2015 298 291 430 -2% Buy
Ltd.
M&M 12/01/2015 1238 1394 1450 13% Profit Book

On Investment, Never test the depth of the river with both the feet.

- 7-
Vol.: 351
31 JULY ,2017

J Street Short Term Call Status

Sr. BUY/ TRIGGER %
No.
DATE STOCK RANGE RANGE TGT SL STATUS
SELL PRICE RETURN
1 14-Jun-17 DHFL BUY 435 442 438.50 459.00 422 TA 4.2

2 15-Jun-17 GODREJIND BUY 640 648 644.00 676.00 620 TA 4.4

3 16-Jun-17 BAJFINANCE BUY 1395 1415 1405.00 1472.00 1358 TA 4.4

4 19-Jun-17 INDIACEM BUY 217 222 219.50 232.00 211 EXPIRE .

5 20-Jun-17 J&KBANK BUY 92 95 93.50 103.00 88 SL -3.8

6 21-Jun-17 DHFL BUY 454 462 458.00 480.00 441 TA 4.2

7 22-Jun-17 ICIL BUY 183 186 184.50 194.00 178 SL -3.6

8 23-Jun-17 SIEMENS BUY 1346 1365 1355.50 1421.00 1307 EXPIRE .

9 27-Jun-17 PIDILITIND BUY 825 836 830.50 868.00 803 SL -3.6

10 28-Jun-17 GRASIM BUY 1210 1222 1216.00 1280.00 1176 TA 4.8

11 29-Jun-17 AMBUJACEM BUY 243 248 245.50 258.00 237 TA 4.4
12 3-Jul-17 TVSMOTOTRS BUY 542 550 546.00 571.00 529 TA 4.6

13 4-Jul-17 SRTRANSFIN BUY 1020 1035 1027.50 1080.00 990 TA 4.8

14 5-Jul-17 DABUR BUY 292 296 294.00 309.00 284 TA 4.4

15 6-Jul-17 BHARATFIN BUY 738 749 743.50 781.00 718 TA 4.6
16 7-Jul-17 CENTURYTEX BUY 1120 1135 1127.50 1178.00 1090 TA 4.4

17 10-Jul-17 ASHOKLEY BUY 103 105 104.00 109.00 100 TA 4.2

18 11-Jul-17 GODREJIND BUY 662 674 668.00 700.00 646 TA 4.4

19 12-Jul-17 POWERGRID BUY 210 214 212.00 223.00 205 EXPIRE .

20 13-Jul-17 IOC BUY 388 393 390.50 408.00 377 SL -3.6
21 14-Jul-17 VOLTAS BUY 480 490 485.00 512.00 468 TA 4.4

22 17-Jul-17 INDIANB BUY 312 317 314.50 330.00 303 TA 4.4

23 18-Jul-17 BHARATFORG BUY 1140 1150 1145.00 1195.00 1112 OPEN

- 7-
Vol.: 351
31 JULY ,2017

J Street Short Term Call Status

BUY/ TRIGGER %
Sr. No. DATE STOCK RANGE RANGE TGT SL STATUS
SELL PRICE RETURN
24 19-Jul-17 ZEEL BUY 525 535 530.00 564.00 509 OPEN .

25 20-Jul-17 DHFL BUY 465 472 468.50 492.00 454 OPEN .

.26 21-Jul-17 PFC BUY 125 128 126.50 134.00 122 SL -3.8

27 24-Jul-17 CUMMINSIND BUY 995 1010 1002.50 1052.00 968 OPEN .

28 25-Jul-17 GODREJCP BUY 985 996 990.50 1038.00 958 OPEN .

29 26-Jul-17 UPL BUY 882 894 888.00 930.00 861 OPEN .

30 27-Jul-17 BEL BUY 173 177 175.00 185.00 169 OPEN .

STATUS CALLS RATIO

TA+PB 15 75.00

SL+EXIT 05 25.00

TOTAL 21 100.00

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)

- 7-
Vol.: 351
31 JULY ,2017