Vol.

: 357
25 SEPT ,2017

Index

Market View 1
MARKET VIEW
Company Update 2
WEATHER THE MUCH AWAITED CORRECTION HAS STARTED??
Around the
Economy 3 Since last two weeks we have discussed categorically that there are many factors
which suggest that a correction in market is overdue. For the first time in the Indian
Knowledge Corner 3 economy, the concerns for macroeconomic issues are being raised. The slowing down
growth, bottoming out of inflation, the serious NPA issue and rise in current account
Mutual Fund 4
deficit are reflection of some structural weakness in the economy. If it is temporary and
manageable within very short time, it will be a buying opportunity on every dips but the
Commodity Corner 5
time will tell that how serious are the structural problems. At international level, the se-
Forex Corner 6 rious situation does not seem to be waning off. Rather some more issues are cropping
up. Today, even after stern warning by West, Iran has tested its missile capacity. North
Report Card 7 Korea is making all sorts of provocative statements. Under the circumstances, the sen-
timent of market is getting affected on regular basis.
Short Term Call Status 8
The sell off on Friday is first indication of a correction in the market. Unless the
market gets support in the range of 9900-9950, it can correct more. Last time market
received support at 9685 which becomes sound support in short to medium term. Be
cautious and do not leverage in this uncertain time.
Special Contributors
Kunal Shah
Dhaval Ghodasara

For suggestions, feedback

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

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Vol.: 357
25 SEPT ,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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25 SEPT ,2017

Around The World

Weekly Market Recap :
The IMD said in its report that the monsoon was 5% below the normal monsoon. Among economic data, India's
merchandise exports increased 10.3% to $23.82 billion in August 2017 over a year ago. Meanwhile, merchandise
imports jumped 21% to $35.46 billion. As per the data released by the RBI Indias services exports increased
3.2% to $13.18 billion in July 2017 over July 2016.

Global investor sentiment was subdued after North Korea said it might test a hydrogen bomb in the Pacific Ocean.
North Korea's foreign minister reportedly warned on Thursday. Market participants also lacked buying conviction after
the outcome of the US Federal Reserve meeting at the conclusion of its two-day monetary policy meet left rates un-
changed.

Market Eye Week ahead :

Capacite Infra projects to make a debut on Monday on the street. The India Meteorological Department in its weekly
weather report said that for the country as a whole, cumulative rainfall during this year's monsoon upto 20 September
has been 5% below the normal rainfall. Trading could be volatile next week as traders roll over positions in the futures &
options segment from the near month September series.

US CB Consumer Confidence data for September will be announced on Tuesday, 26 September .US New Home Sales
data for August 2017 will be announced on Tuesday, 26 September. UK Q2 Gross Domestic Product (GDP) data will be
announced on Wednesday, 27 September. US Q2 Gross Domestic Product (GDP) data will be announced on Thursday,
28 September.

Key Events / Factors to Watch

1. Mon :Dividend:8k Miles
2. Tue : Agm:KRBL, MMTC, SCI Ltd,R.Power
3. Wed : Bonus: Manpasand Beverage,MOIL Ltd.
4. Thu: Bonus: BEL, BHEL.
5. Fri : AGM:GNFC,DLF,IB Real.

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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25 SEPT ,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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25 SEPT ,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 : SELL GOLD @ 29900 SL 30100 TGT 29650-450 SELL SILVER @40900 SL 41500 TGT 40450-40100

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 @ 132 SL 130 TGT 134.8-36 BUY COPPER @ 418 SL 410 TGT 428-434 BUY ZINC @ 192 SL 188
TGT 195-99 BUY NICKEL @ 710 SL 690 TGT 735-60.

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 : BUY CRUDE @ 3150 SL 3050 TGT 3240-3320 SELL NAT.GAS @ 191 SL 185 TGT 196.5-202.

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Vol.: 357
25 SEPT ,2017

Commodity Corner
Forex Corner
Market Recap :

The rupee on Monday weakened past 65-mark

against the US dollar after local equity markets
fell for fifth consecutive sessions.

The 10-year bond yield was at 6.64%, compared

to its previous close of 6.663%. Bond yields and
prices move in opposite directions.

The dollar index, which measures the US cur-

rencys strength against major currencies, was
trading at 92.25, up 0.08% from its previous close
of 92.171.

Market Eye Week ahead :

The USDINR On daily chart pair above all short term and medium term, moving average which is 50, 100
Whereas on weekly chart pair has continually taking support at 50WMA. Which suggest short term trend is bull-
ish . So for trading perspective, one could buy to the level 64.70-64.84 with SL of 67.48 for target of 65.11-65.36.

USD/INR
Level S2 S1 CP R1 R2 High Low Close
USD/INR 64.48 64.66 64.93 65.11 65.38 65.21 64.76 64.76

EUR/INR
Level S2 S1 CP R1 R2 High Low Close
EUR/INR 77.04 77.32 77.80 78.08 78.56 78.29 77.53` 77.59

GBP/INR
Level S2 S1 CP R1 R2 High Low Close
GBP/INR 87.31 87.62 88.07 88.38 88.83 88.51 87.75 87.94

JPY/INR
Level S2 S1 CP R1 R2 High Low Close
JPY/INR 57.57 57.74 58.03 58.20 58.49 58.33 57.87 57.90

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Vol.: 357
25 SEPT ,2017

J Street Recommendations Report Card

Nifty last week opened at 10133.10 attained a high at 10178.95and moved down to 9952.80.Nifty finally closed the week at 9964.40 thereby showed
a net fall of 1.20%.Bearish Engulfing Bear candlestick pattern has been formed . Bearish Engulfing candlestick pattern suggest that near term rally
can continue on breakout and close above 10179 on weekly basis. Exit long and sell on rise to 10032-10111 with a stop loss of 10179. Expect lower
range of 9885-9805-9659.Support will be at 9934-9861.A fall and close below 9861 will extend the slide to 9710-9685.

Top Fundamental Stocks

Absolute
Stocks Rec. Date CMP on Rec. CMP Target Return @ Status
CMP

KEC International 11/09/2017 310 302 384 -3% Accumulate

Maruti Suzuki 30/06/2017 7220 7916 9000 10% Accumulate

DHFL Ltd 27/06/2017 430 530 590 23% Buy

Manappuram Fi-
30/05/2017 87 96 130 10% Buy
nance
Godrej Properties 12/05/2017 508 595 630 3% Accumulate

Tvs Motor 24/04/2017 485 633 650 31% Buy

DCB Bank 17/04/2017 175 181 310 3% Buy

REC Ltd 27/03/2017 175 164 240 -6% Buy

Petronet 20/02/2017 200 225 290 13% Accumulate

Escorts 06/02/2017 410 617 790 50% Buy

Edelweiss financial 16/11/2016 117 256 275 119% Buy

IOC Ltd 27/02/2017 376 400 490 6% Buy

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

Voltamp trans-
13/02/2017 980 1122 1360 14% Buy
former
Mothersumi 03/04/2017 300 338 495 13% Buy

Lic hsg Finc 27/03/2017 608 638 830 5% Buy

Asian Paints 10/03/2017 1030 1203 1260 17% Buy

Nbcc india 20/03/2017 175 209 225 19% Buy

M&M 12/01/2015 1238 1257 1450 2% Buy

The stock market is a device for transfering the money from the impatient to the patient.

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Vol.: 357
25 SEPT ,2017

J Street Short Term Call Status

Sr. BUY/ TRIGGER %
No.
DATE STOCK RANGE RANGE TGT SL STATUS
SELL PRICE RETURN
1 9-Aug-17 HEXAWARE` BUY 258 263 260.50 273.00 252 TA 4.3

2 10-Aug-17 VEDL BUY 297 301 299.00 313.00 290 TA 4.2

3 11-Aug-17 STAR SELL 950 938 944.00 902.00 976 TA 4.2

4 14-Aug-17 MCDOWELL SELL 2440 2410 2425.00 2315.00 2790 SL -3.2

5 16-Aug-17 M&MFIN BUY 420 424 422.00 445.00 412 TA 4.2

6 17-Aug-17 RADICO BUY 158 162 160.00 183.00 148 TA 4.3

7 18-Aug-17 CESC BUY 940 955 947.50 992.00 915 TA 4.6

8 21-Aug-17 HAVELLS BUY 474 482 478.00 499.00 462 SL -2.8

9 22-Aug-17 AMBUJACEM BUY 272 276 274.00 287.00 265 TA 4.4

10 23-Aug-17 DHFL BUY 455 462 458.50 480.00 443 TA 4.6

11 24-Aug-17 BEL BUY 181 184 182.50 194.00 173 TA 4.2
12 28-Aug-17 KAJARIACER BUY 695 707 701.00 742.00 676 EXIT .

13 29-Aug-17 HINDUNILVR BUY 1190 1210 1200.00 1260.00 1162 TA 4.4

14 30-Aug-17 GSFC BUY 139 142 140.50 151.00 135 TA 4.2

15 31-Aug-17 PEL BUY 2700 2730 2715.00 2848.00 2641 TA 4.6
16 4-Sep-17 ASIANPAINT BUY 1200 1220 1210.00 1276.00 1165 EXIT .

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

18 6-Sep-17 DALMIABHA BUY 2735 2760 2747.50 2870.00 2665 SL -3.2

19 7-Sep-17 TATAGLOBAL BUY 203 208 205.50 220.00 196 TA `4.2

20 8-Sep-17 CADILAHC BUY 508 515 511.50 540.00 493 SL -3.6
21 11-Sep-17 ASHOKLEY BUY 114 117 115.50 125.00 110 OPEN .

22 12-Sep-17 BERGEPAINT BUY 264 268 266.00 283.00 254 SL -3.6

23 13-Sep-17 CAPF BUY 800 812 806.00 858.00 772 SL -3.4

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Vol.: 357
25 SEPT ,2017

J Street Short Term Call Status

BUY/ TRIGGER %
Sr. No. DATE STOCK RANGE RANGE TGT SL STATUS
SELL PRICE RETURN
24 14-Sep-17 SUNPHRMA BUY 500 512 506.00 540.00 481 OPEN .

25 15-Sep-17 KANSAINER BUY 500 512 506.00 540.00 483 OPEN .

26 18-Sep-17 L&TFIN BUY 203 207 205.00 216.00 198 OPEN .

27 19-Sep-17 BATAINDIA BUY 728 740 734.00 771.00 707 OPEN .

28 20-Sep-17 KAJARIACER BUY 728 740 734.00 778.00 706 OPEN .

29 21-Sep-17 KTKBANK BUY 162 165 163.50 174.00 157 OPEN .

30 22-Sep-17 TECHM BUY 454 462 458.00 486.00 443 OPEN .

STATUS CALLS RATIO

TA+PB 14 70.00

SL 06 30.00

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)

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