Vol.

: 332
06 MAR ,2017

Index

Market View 1 MARKET VIEW

Company Update 2
HIGH VOLATILITY IS EXPECTED
Around the
Economy 3 February was a fantastic month for the global capital market, including India. Lot
of events are going to happen in the month of March making it a volatile month for the
Knowledge Corner 3 Indian market. It is a last month of f.y.16-17 and lot of yearly adjustments are made in
the month of March. From 11th March onwards, the results of four states assembly
Mutual Fund 4 election will be announced. On 15th of March last installment of advance tax payment
will squeeze some liquidity. FED meeting for deciding the interest rate is scheduled on
Commodity Corner 5 14th March. All this events are going to create volatility in either direction. The latest fig-
ure of third quarter GDP and other economic data suggest that the Indian economy
Forex Corner 6 has digested the pains of demonetization and it is on the path of strong performance.
Under the circumstances, any remarkable downside triggered by any of the above
Report Card 7 events will be a good buying opportunity for reasonably valued stocks for medium to
long term investors.
Short Term Call Status 8
Technically the market has sustained an important range of 8820-8850 and
Editor & Contributor touched 52 week high of 8992. So there is a strong resistance for the market in that
Darshana Mishra range. Market can cross that range with the help of any event mentioned above. Till
then brace for high volatility.

Special Contributors
Kunal Shah
Dhaval Ghodasara

For suggestions, feedback

and queries
jstreet@jhaveritrade.com

Kamal Jhaveri
MD- Jhaveri Securities

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06 MAR ,2017

Company Update : MARUTI SUZUKI INDIA LTD.

Company Basics Financial Basics Share Holding Pattern
BSE Code 532500 FV (`) 5.00 Holder's Name % Holding
EPS (`) (TTM) 223.86 Promoter 43.79
NSE Symbol MARUTI P/E (x) (TTM) 26.82 Public 56.21

EQUITY (` in Cr.) 151 P/BV (x) (TTM) 6.71

MKT.CAP (` in Cr.) 181338

Outlook and valuation : We introduce FY19 estimatesvolume growth of 11.3% and core EPS at INR 268, up15% YoY. Long
wait list for key products, superior franchise and solid financials (9% FCF to sales, RoE of ~24% in FY19E) improve MSILs visi-
bility and help sustain premium valuations. value the stock at 21x FY19E core EPS and arrive at target price of INR 6,800. At
CMP, the stock trades at FY18/19E PER of 19/17x.

Company Overview :
Maruti Suzuki India Ltd (formerly Maruti Udyog Ltd) is Indias largest passenger car company, accounting for over 50 per
cent of the domestic car market. Maruti Suzuki India Ltd was incorporated on February 24, 1981 with the name Maruti
Udyog Ltd. The company was formed as a government company, with Suzuki as a minor partner, to make a peoples car for
middle class India. Maruti has four plants, three located at Palam Gurgaon Road, Gurgaon, Haryana and one located at
Manesar Industrial Town, Gurgaon, Haryana and one more new started plant at Sanand, Gujarat with Export Facility. During
the year 2007-08, the company signed an agreement with the Adani group for exporting 200,000 units annually through the
Mundra port in Gujarat.
Investment Rational :
Market Leader in Passenger Vehicle Segment

Maruti Suzuki commands 45% in the passenger vehicle (cars, sports utility vehicles (SUV) and vans) segment with Alto, Swift, Dzire and
Wagonr as the top 4 most selling passenger vehicle brand. The Company holds leadership position in passenger vehicle segment due to
its continuous effort to build on its competitive value proposition by constantly upgrading models with latest technologies without a major
increase in cost and penetrating deeper into the country to find new buyers.

New Product Launches

The Company is always focused on launching new vehicles to tap more number of buyers in the passenger vehicles segment. Maruti
has been at the forefront of upgradation and new vehicle launches for over 2 decades. New launch Baleno and Brezza and Highly suc-
cessful and awaiting for its latest Ignis.

Strong distribution network

The Company continues to hold dominant market share on the back of its vast distribution network (~1200dealerships in ~800 cities) and
strong service network (~3000 workshops in ~1400 cities). The Company is also establishing a chain of retail outlets branded Nexa to
exclusively cater to the sale of premium products starting with upcoming cross-over utility vehicle S-Cross.

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Around The World

Weekly Market Recap :

On the economic front, the GDP growth is estimated to be 7% in Q3 December 2016, as per the second advance estimates of national
income from Central Statistics Office (CSO) under Ministry of Statistics and Programme Implementation. The growth in GDP during 2016-
2017 is estimated at 7.1% as compared to the growth rate of 7.9% in 2015-2016.

On the economic front, the GDP growth is estimated to be 7% in Q3 December 2016, as per the second advance estimates of national
income from Central Statistics Office (CSO) under Ministry of Statistics and Programme Implementation. The growth in GDP during 2016-
2017 is estimated at 7.1% as compared to the growth rate of 7.9% in 2015-2016.

Market Eye Week ahead :

Another initial public offer (IPO) of Music Broadcast will open for subscription on 6 March 2017. The price band for the IPO is Rs 324 to Rs
333 per share. The IPO closes on 8 March 2017. Music Broadcast, promoted by Jagran Prakashan, operates radio stations under the
brand Radio City. On the political front, final results of the elections which were recently held in five states including Uttar Pradesh, Goa,
Uttarakhand, Punjab and Manipur are due on Saturday, 11 March 2017.

On the global front, investors await further clues on the timing of the US interest rate hikes from Fed Chair Janet Yellen's speech in Chi-
cago on Friday, 3 March 2017. The US Fed's next policy-setting meeting is set for 14-15 March 2017. The crucial US non-farm payrolls
data for February 2017 is due on Friday, 10 March 2017.

Key Events / Factors to Watch

1. Mon : Results: TVS Motor
2. Tue : Dividend: Castrol India
3. Wed : -
4. Thu: Dividend: Gail Ltd
5. Fri : Bd Meet: Sun Tv

Knowledge Corner :
Systematic Investment Plan (SIP)
SIP, you can invest a fixed amount in mutual funds step-by-step monthly or quarterly over a period of time, thereby averaging out your
cost of investing and benefiting from the power of compounding. The power of compounding works best as you stay invested helping
your money earn money over the years.

How SIP works?

SIP is a method of investing a fixed sum, regularly, in a mutual fund scheme. SIP allows one to buy units on a given date each month,
so that one can implement a saving plan for themselves. The biggest advantage of SIP is that one need not time the market.

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Mutual Fund Corner

Top 10 Sector Break-Ups
Fund Name
Sector Weights Fund (%)
Scheme Name DSP BLACK ROCK OPPOURTUNITIES FUND
Financial 27.60
AMC DSP Blackrock Investment Managers Automobile 6.48
Energy 12.32
Type Open Ended & Equity Multi Cap
Healthcare 6.94
Category Open-ended FMCG 6.90
Launch Date May 2000 Technology 6.64
Metals 7.81
Fund Manager Rohit Singhania June 2015 Construction 6.84
Net Assets (` Diversified 6.19
Rs. 1478.3 crore as on Oct 31,2016
In crore ) Chemicals 3.32
History 2013 2014 2015 2016 Risk Analysis
Volatility Measures
NAV (Rs) 96.43 140.22 148.76 165.37
Standard Deviation 16.31
Total Return (%) 6.46 45.40 6.09 11.16 Sharpe Ratio 1.11
Beta 1.06
Rank (Fund/Category) 32/73 93/145 31/173 10/143
R-Squared 0.85
Alpha 10.02
52 Week High (Rs) 96.43 143.65 157.09 180.85

52 Week Low (Rs) 79.71 92.17 137.98 126.55

Composition (%)
Equity 94.86
Net Assets (Rs.Cr) 489.59 802.82 820.70 1266.32 Debt 0.07
Cash 5.07
Expense Ratio (%) 2.70 2.66 2.65 2.72

Fund Performance v/s S&P BSE 100 Fund Style

Investment Style
Growth Blend Value
Large
Capitalization

Medium

Small

Fund
S&P BSE 200
(Rebased to 10,000) Source : - www.valueresearchonline.com

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Commodity Corner

BULLION
FUNDAMENTAL: Bullion prices dropped as growing expectations for a March rate hike in the U.S. and a stronger U.S. dollar continued to
weigh on the precious metal. The greenback remained broadly supported after a number of Federal Reserve officials this week ex-
pressed their support for a March rate hike. The U.S. Department of Labor said initial jobless claims declined by 19,000 to 223,000 in the
week ending February 25 from the previous weeks total of 242,000. Fed Chair Janet Yellen added her influential voice, saying a hike
this month would be "appropriate" if economic data hold up. Federal Reserve policymakers who have recently signaled a pending U.S.
interest rate rise are correct given the growing confidence and aggregate demand in the economy and stock market since the U.S. elec-
tion, the Fed's vice chairman said. "If there has been a conscious effort (to raise expectations for a rate hike) I'm about to join it," Stanley
Fischer told an economists' forum, when asked about comments by other Fed officials this past week that have boosted market odds of
a March rate hike.

RECOMMENDATION : SELL GOLD @ 29500 SL 29850 TGT 29150 SELL SILVER @43100 SL 43800 TGT 42440-41800.

BASE METALS

FUNDAMENTAL: Base metals prices ended with mixed node where nickel and copper ended with gains followed by losses in zinc and
lead prices as data from China, including manufacturing and service sector activity, cast doubt over the sustained growth of the world's
second-largest economy. Nickel gained as support seen after update that the Philippines could consider banning exports of unprocessed
minerals such as nickel in an effort to promote value addition in the mining sector, a senior environment official said. "It is one of the op-
tions that has to be considered not only by the DENR (Department of Environment and Natural Resources) but by the entire govern-
ment," DENR Undersecretary Maria Paz Luna told reporters. Ms Luna spoke after a meeting with other government officials tasked to
conduct a second review of 28 mines ordered closed or suspended by the environment ministry. Prices remained supported on the po-
tential for supply disruption from the world's top nickel ore exporter, but miners said following in the foosteps of neighbouring Indonesia
wouldn't be viable without big government incentives.

RECOMMENDATION : SELL ALUMINIUM @ 129 SL 132 TGT 126.50-124 SELL COPPER @ 404 SL 412 TGT 395.5-388 SELL ZINC @ 189
SL 193 TGT 186-183 SELL NICKEL @ 745 SL 765 TGT 728-710

ENERGY

FUNDAMENTAL : Crude oil dropped as record-high U.S. crude stockpiles were seen jeopardizing OPECs efforts to drain a global sur-
plus. Also pressure seen as stung by a stronger dollar and as concerns over a record build-up in U.S. stockpiles weighed on the market,
with producers boosting shale oil production. Russia's February oil output was unchanged from January at 11.11 million barrels per day
(bpd), energy ministry data showed, with its cuts from October 2016 levels remaining at 100,000 bpd or a third of what was pledged by
Moscow under its agreement with the Organization of the Petroleum Exporting Countries (OPEC). Official U.S. data also showed that
crude inventories in the world's biggest oil consumer rose for an eighth straight week to a record 520.2 million barrels last week. But
even as U.S. oil production rose and Russian output held steady, OPEC boosted already strong compliance with the group's six-month
deal to 94 percent, cutting output for a second month in February, a survey found. Russian Energy Minister Alexander Novak said it was
too early to say if the deal to reduce oil production would be extended beyond the end of June.

RECOMMENDATION : BUY CRUDE @ 3480 SL 3350 TGT 3620-3720 SELL NAT.GAS @ 191 SL 199 TGT 182-175

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06 MAR ,2017

Commodity Corner
Forex Corner
Market Recap :

The Indian rupee on Monday strengthened mar-

ginally against the US dollar, tracking gains in the
local equity and Asian currencies markets.

The 10-year bond yield was at 6.852% compared

to its Friday s close of 6.784%. Bond yields and
prices move in opposite directions.

On Friday, US Federal Reserve chairwoman

Janet Yellen said an increase in Fed funds rate
will likely be appropriate at Federal Open Market
Committees (FOMC) 14-15 March meeting if poli-
cymakers determine that employment, inflation
continue to evolve in line with expectations,
Reuters reported.

Market Eye Week ahead :

The USDINR On daily chart pair below all short term, medium term, and long term moving average and daily su-
per trend which is 50, 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 67.07-67.00
with SL of 67.10 for target of 67.97-66.93.

USD/INR
Level S2 S1 CP R1 R2 High Low Close
USD/INR 66.94 66.97 67.02 67.05 67.10 67.07 66.99 67.00

EUR/INR
Level S2 S1 CP R1 R2 High Low Close
EUR/INR 70.51 70.63 70.69 70.81 70.87 70.76 70.58 70.69

GBP/INR
Level S2 S1 CP R1 R2 High Low Close
GBP/INR 81.66 81.83 82.13 82.30 82.60 82.42 81.95 82.01

JPY/INR
Level S2 S1 CP R1 R2 High Low Close
JPY/INR 58.41 58.50 58.68 58.77 58.95 58.85 58.58 58.60

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J Street Recommendations Report Card

Nifty last week opened at 8943.70 and attained a high at 8992.50. Further Nifty fell to a low of 8860.10 and closed the week at
8897.50 thereby showed a net fall of 0.47%. Hold long position with a stop loss of 8800. Resistance will be at 8916-8993.Further rise
above 8993 closing. On sustained rise and close above 8993 expect a rise towards 9119. On further sustained rise and close
above 9120 expect a rally to 10043-10461-11416.

Top Fundamental Stocks

Absolute
Stocks Rec. Date CMP on Rec. CMP Target Return @ Status
CMP
Petronet LNG 20/02/2017 400 394 485 -2% Buy

Escorts 06/02/2017 383 488 540 27% Buy

Edelweiss financial 16/01/2017 117 136 175 16% Acculumate

IOC Ltd 27/02/2017 376 380 450 1% Acculumate

Alembic Pharma-
30/08/2016 630 593 732 -6% Buy
ceuticals
Coromandel
25/07/2016 235 321 308 37% Profit book
International
Capital First 06/06/2016 552 639 660 16% Profit book
Wonderla Holidays 25/04/2016 387 380 498 -2% Accumulate
Mold-Tek Packaging 04/04/2016 138 49 179 0% Buy
Garware-Wall Ropes 28/12/2015 425 677 550 59% Profit book
AYM Syntax 23/11/2015 121 81 223 -33% Buy
Natco Parma 02/11/2015 509 771 636 51% Buy

SRF 21/09/2015 1140 1582 1374 39% Profit book

Ahluwalia contracts 24/08/2015 235 314 368 34% Profit book

Infinite Computer
20/07/2015 190 233 255 23% Buy
Sol.
Sadbhav
04/05/2015 298 275 430 -8% Buy
Engineering Ltd.
Omkar speciality
16/03/2015 152 158 251 4% Buy
Chemicals
DHFL 16/02/2015 252 328 368 30% Accumulate
M&M 12/01/2015 1238 1326 1452 7% Buy
Havells India 27/10/2014 274 422 346 54% Profit book
PTC India Fin. Ser. 07/07/2014 39 40 45 3% Profit book
The stock market is a device for transferring money from the impatient to the patient.

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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 16-Jan-17 TATAELAXSI BUY 1414 1416 1415.00 1488.00 1370 TA 4.8
2 18-Jan-17 SPARC BUY 325 330 327.50 344.00 313 SL -3.8
3 19-Jan-17 ULTRACMCO BUY 3470 3520 3495.00 3660.00 3390 TA 4.1
4 20-Jan-17 AMRAJABAT BUY 915 928 921.50 965.00 888 SL -3.5
5 23-Jan-17 HAVELLS BUY 398 403 400.50 419.00 388 TA 4.1
6 24-Jan-17 BEML BUY 1235 1245 1240.00 1305.00 1190 TA 4.1
7 25-Jan-17 GRASIM BUY 900 916 908.00 952.00 875 TA 4.2
8 30-Jan-17 PETRONET BUY 391 395 393.00 412.00 378 SL -3.5
9 31-Jan-17 GODREJCP BUY 1580 1610 1595.00 1650.00 1530 TA 3.2
10 1-Feb-17 NBCC BUY 268 272 270.00 283.00 260 EXPIRE .

11 2-Feb-17 M&M BUY 1285 1296 1290.50 1350.00 1250 TA 4

12 3-Feb-17 UPL BUY 730 738 734.00 766.00 712 EXPIRE .

13 6-Feb-17 COALINDIA BUY 324 328 326.00 341.00 315 TA 3.6

14 7-Feb-17 SIEMENS BUY 1220 1234 1227.00 1282.00 1184 SL -3.8

15 8-Feb-17 CESC BUY 800 808 804.00 840.00 776 TA 4.2
16 9-Feb-17 GAIL BUY 483 488 485.50 505.00 471 TA 4.22
17 10-Feb-17 MOTHERSUMI BUY 345 352 348.50 366.00 337 TA 3.8
18 13-Feb-17 EMAMILTD BUY 1135 1145 1140.00 1190.00 1100 SL -3.8

19 14-Feb-17 INFY BUY 976 988 982.00 1024.00 949 TA 4.2

20 15-Feb-17 TECHM BUY 502 508 505.00 528.00 487 OPEN .
21 16-Feb-17 IGL BUY 1040 1052 1046.00 1094.00 1011 OPEN .
22 17-Feb-17 BAJFINANCE BUY 1090 1105 1097.50 1149.00 1060 SL -3.8
23 20-Feb-17 L&TFIN BUY 115 117 116.00 122.00 112 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 21-Feb-17 HEXAWARE BUY 212 216 214.00 225.00 206 TA 4.2
25 22-Feb-17 DISHTV BUY 92 94 93.00 98.50 88 TA 4

26 23-Feb-17 KTKBANK BUY 125 128 126.50 134.00 121 TA 4.2

27 28-Feb-17 BEML BUY 1330 1345 1337.50 1397.00 1296 OPEN .

28 1-Mar-17 ARVIND BUY 376 381 378.50 396.00 366 TA 4.2

29 2-Mar-17 M&M BUY 1340 1356 1348.00 1410.00 1298 OPEN .

30 3-Mar-17 ULTRACEMCO BUY 3800 3840 3820.00 3990.00 3710 OPEN .

STATUS CALLS RATIO

TA+PB 16 72.72

SL+EXIT 06 27.27

TOTAL 22 100.00

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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