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J-STREET Volume 349
J-STREET Volume 349
J-STREET Volume 349
: 349
17 JULY ,2017
Index
Market View 1
INDIA IS ONE OF THE HIGHEST RATED INVESTMENT DESTINATION
Company Update 2
The Chief Executive Officer of Ernst & Young Mr. Mark Weinberger said in an
Around the interview that today India is one of the highest rated investment destination in the
Economy 3 world. It has got 7% growth rate, stable Government, good macroeconomic indicators
Knowledge Corner 3 like low inflation and deficit under control. The most important is massive reforms
aimed at the right direction. In other emerging markets the factors like swing in com-
Mutual Fund 4
modity prices affect the fundamentals. Countries like Venezuela, Brazil and Russia are
Commodity Corner 5 running through difficulties. There are difficult decisions to be made in the world but
when you look at where to put money, India constantly comes out as a safe bets right
Forex Corner 6
now. These are the words and opinion of Ernst & Young. India has really improved in
Report Card 7 opening more sectors to foreign investors. Inviting foreign investors to invest in Insur-
Short Term Call Status 8 ance, Defense, Rail, Roads and retail is a big positive.
Last week the inflation data has really boosted the market sentiment in expecta-
tion of a rate cut by RBI in the month of August. The business sentiment of top execu-
Special Contributors tives is also rising in view of the GST implementation. Under the circumstances the
Kunal Shah
Dhaval Ghodasara market is buying on dip market and any meaningful correction will throw an invest-
ment opportunity. Here it is very important to note that the retail investors are shifting
their financial assets to equity from the instruments like Bank FDs, Gold and Real Es-
tate. The number of Demat Accounts is close to 3 Crores which has tremendous po-
tential for growth. Technically sustainable rise beyond 9800 will take the Nifty to 10240
with sound support at 9780-9650-9580-9480.
Kamal Jhaveri
MD- Jhaveri Securities
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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.
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%.
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Global stock markets also provided some tailwind after US Federal Reserve chair Janet Yellen, in a House testimony, sig-
nalled that the approach to higher rates will be steady, prompting investors to buy more in risky emerging markets.
Among prominent companies, ACC and Jubilant FoodWorks will announce April-June 2017 results on Monday, 17 July 2017.
CRISIL and Ultratech Cement will announce April-June 2017 results on Tuesday, 18 July 2017. Wipro, Bajaj Auto, Kotak
Mahindra Bank and RBL Bank will announce April-June 2017 results on Thursday, 20 July 2017.
Overseas, China will unveil GDP data for second quarter on Sunday, 16 July 2017. Eurozone Consumer Price Index (CPI)
data for June will be declared on Monday, 17 July 2017.
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.
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Medium
Small
Fund
Nifty 50
(Rebased to 10,000) Source : - www.valueresearchonline.com
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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.
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Commodity Corner
Forex Corner
Market Recap :
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 65-64.80 with SL of 65.60 for target of
64.28-64.20.
USD/INR
Level S2 S1 CP R1 R2 High Low Close
USD/INR 64.28 64.42 64.58 64.72 64.88 64.75 64.45 64.55
EUR/INR
Level S2 S1 CP R1 R2 High Low Close
EUR/INR 72.96 73.33 73.84 74.21 74.72 74.34 73.46 73.71
GBP/INR
Level S2 S1 CP R1 R2 High Low Close
GBP/INR 82.18 82.57 83.51 84.12 84.45 83.84 82.90 83.79
JPY/INR
Level S2 S1 CP R1 R2 High Low Close
JPY/INR 57.36 57.64 56.95 57.36 57.64 57.23 56.54 57.08
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Alembic Pharmaceuti-
30/08/2016 630 541 732 -14% Buy
cals
Wonderla 25/04/2016 387 357 498 -8% Buy
Sadbhav Engineering
04/05/2015 298 290 430 -3% Buy
Ltd.
M&M 12/01/2015 1238 1400 1450 13% Profit Book
On Investment, Never test the depth of the river with both the feet.
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TA+PB 14 63.63
SL+EXIT 08 36.36
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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