Vol.

: 342
29 MAY ,2017

Index

Market View 1 MARKET VIEW

Company Update 2
MARKET BOUNCED BACK FROM SUPPORT LEVELS
Around the
Economy 3 27 MAY 2017
As expected, the market corrected from the high to a strong support
Knowledge Corner 3 level of 9350-9370 range in last week. Any bull market correction lives for
short tim e and bounces back very sharply, which we have witnessed in last
Mutual Fund 4
two trading da ys. But at this level the m arket is punishing bad results and
Commodity Corner 5 weak forecasting while rewarding the good performers. The demonetization
effect is behind us and in fact the formal econom y is getting stronger with
Forex Corner 6 GST on the horizon. T he Government is seriously im plementing the infra pro-
jects in all m ost all the sectors of the econom y, which will have spillover ef-
Report Card 7
f ect on the econom y going forward. The aggressive buying in large cap stocks

Short Term Call Status 8 by the institutes has raised the prospects of the index scaling now heights.

Editor & Contributor W ith technical support of 9500 and 9350, the market can go up to 9700
Darshana Mishra

Special Contributors
Kunal Shah
Dhaval Ghodasara

Kamal Jhaveri
MD- Jhaveri Securities

For suggestions, feedback

and queries
jstreet@jhaveritrade.com

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29 MAY ,2017

Company Update : MANAPPURAM FINANCE LTD

Company Basics Financial Basics Share Holding Pattern
BSE Code 531213 FV (`) 2.00 Holder's Name % Holding
EPS (`) (TTM) 7.64 Promoter 34.45
NSE Symbol Manappuram P/E (x) (TTM) 11.66 Public 65.55

EQUITY (` in Cr.) 84 P/BV (x) (TTM) 2.74

MKT.CAP (` in Cr.) 7497

Outlook and valuation : We recommend BUY on the stock BUY rating for the stock and value MGFL at
SoTP valuations, with gold business at 3.0x P/BV, micro-finance at 4.2x P/B FY18E. Subse-
quently, our target price stands at INR 130.

Company Overview :
Manappuram Finance Ltd (Formerly known as Manappuram General Finance and Leasing Ltd) is a non-banking
finance company. The company provides a range of services, including gold loans, vehicle finance, insurance, for-
eign exchange services, distribution of mutual funds and other financial products. The company currently operates
through more than 1000 branches spread across the country. During the year 1994-95, the company opened new
branches in Calicut, Guruvayur, Ernakulam and Thriprayar. In the year 2002, they started Forex business as a
part of its diversification.

Investment rationale for Manappuram Finance Ltd

Despite the impact of demonetization, Manappuram Finance (MGFL) recorded an all-round performance for Q3FY17 with PAT at
INR 2.036 bn (increased 101.5% on Y-o-Y basis and 52% on Q-o-Q basis) largely led by robust increase in Net interest in-
come (increased 53% on Y-o-Y basis and 6.8% on Q-o-Q basis) and controlled operating expenses (increased merely 9.6% on Y- o-
Y basis).

Product diversification strategy and rising gold loan volumes (gold holdings up 11% Y-o-Y; with large focus on-line gold loan product)
coupled with improved gold loan quality and greater thrust on collections emerging from rapidly improving microfinance segment
boosted the earnings for the quarter.

The share of new businesses (microfinance, mortgage and housing and commercial vehicle financing) increased to 15% in
Q3FY17 of overall AUMs.

Asset quality largely stable: With stressed legacy gold portfolio behind and MGFL focusing on shorter tenure products, laying
greater emphasis upon regular interest collections and tightened recognition norms, the asset quality stands as one of the best in
the industry.

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29 MAY ,2017

Around The World

Weekly Market Recap :

Domestic stocks logged strong gains in the week ended Friday, 26 May 2017 led by steady buying in index heavyweights
ITC, ICICI Bank and Infosys. The barometer index, the S&P BSE Sensex, scaled record high above the psychological 31,000
mark. The Sensex and the Nifty, both, hit record closing high. However, the BSE Mid-Cap and the S&P BSE Small-Cap indi-
ces underperformed the Sensex during the week.

US flash PMI reading for services and manufacturing for May were mixed. Manufacturing PMI dipped to an 8-month low,
while services PMI rose to a 4-month high, data on Wednesday, 24 May 2017 showed.

Market Eye Week ahead :

Domestic and global macroeconomic data, Q4 results of India Inc., trend in global markets, investment by foreign portfolio
investors (FPIs) and domestic institutional investors (DIIs), the movement of rupee against the dollar and crude oil price move-
ment will dictate trend on the bourses in week ahead.

On the global front, China Caixin manufacturing PMI data for May 2017 will be announced on Thursday, 1 June 2017. US
Markit Manufacturing PMI for the month of May 2017 is slated to be released on Thursday, 1 June 2017. US nonfarm payrolls
data for May 2017 is scheduled to be released on Friday, 2 June 2017.

Key Events / Factors to Watch

1. Mon : Result: Aurobindo Pharm, Bajaj, L&T, BHEL, City Union Bank
2. Tue : Result: ApolloHospitals, HCL, Hindalco, HDIL, Jet Airways, Mahindra
3. Wed : Result: Castrol India Ltd
4. Thu: Dividends: Infosys
5. Fri : Dividends: Indian Banks

Knowledge Corner :
MASALA BONDS
.Masala bonds are rupee denominated overseas bonds

Masala bonds will help to internationalise the Indian rupee and also deepen the Indian financial system. By issuing
bonds in rupees, an Indian company is shielded against the risk of currency fluctuation, typically associated with
borrowing in foreign currency. Besides helping diversify funding sources, the cost of borrowing could also turn out
to be lower than domestic markets. In 2013, the first masala bonds were issued by the International Finance Cpo-
ration (IFC), an arm of the World Bank.

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29 MAY ,2017

Mutual Fund Corner

Top 10 Sector Break-Ups
Fund Name
Sector Weights Fund (%)
Scheme Name L&T INDIA VALUE FUND
Financial 23.87
AMC L&T Investment Management Ltd Automobile 4.54
Energy 13.00
Type Open Ended & Equity Mid Cap
Healthcare 3.94
Category Open-ended FMCG 6.73
Launch Date January 2010 Services 5.06
Metals 6.89
Fund Manager Karan desai & V.Manghat Construction 9.03
Net Assets (` Diversified 5.47
Rs. 3898.5 cr as on Apr 30, 2017
In crore ) Chemicals 7.65
History 2014 2015 2016 2017 Risk Analysis
Volatility Measures
NAV (Rs) 22.64 25.56 27.64 33.79
Standard Deviation 18.67
Total Return (%) 74.06 12.88 8.13 22.25 Sharpe Ratio 1.41
Beta 1.15
Rank (Fund/Category) 23/78 12/71 26/79 35/93 0.73
R-Squared
Alpha 17.89
52 Week High (Rs) 22.87 26.67 30.13 -

52 Week Low (Rs) 12.29 22.40 21.39 - Composition (%)

Equity 93.07
Net Assets (Rs.Cr) 101.56 733.68 2050.82 2800.65 Debt 0.01
Cash 6.92
Expense Ratio (%) 3.02 2.94 2.59 -

Fund Performance v/s Bse 200 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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29 MAY ,2017

Commodity Corner

BULLION
FUNDAMENTAL: Bullion prices ended with gains on weekly basis as the dollar softened on political turbulence in the United
States, boosting bullion's safe-haven appeal. New applications for U.S. jobless benefits unexpectedly fell last week and the number of
Americans on unemployment rolls tumbled to a 28-1/2-year low, pointing to rapidly shrinking labour market slack Safe-haven demand
was boosted following reports this week that U.S. President Donald Trump asked former FBI Director James Comey to end the agency's
investigation into ties between former White House national security adviser Michael Flynn and Russia. Former FBI Director Robert
Mueller was appointed by the Justice Department as a special counsel to take over the probe into Russia's interference in the 2016 election
Cleveland Federal Reserve Bank President Loretta Mester repeated her call for further U.S.-interest rate hikes now that the econ-
omy has reached full employment and inflation is nearing the Fed's 2-percent goal European Central Bank policymakers are prepar-
ing to dial back their extraordinary stimulus measures if the economy continues to improve, but that course of action is not yet cer-
tain

RECOMMENDATION : BUY GOLD @ 28550 SL 28300 TGT 28900-29200 BUY SILVER @38900 SL 38200 TGT 39650-40400

BASE METALS

FUNDAMENTAL: Last week, base metals prices ended with gains thanks to dollar weakness and receding worries over China's
economy. Earlier in the Base metals slumped as the political crisis in the U.S. threatened to delay the infrastructure spending plans
and tax cuts that President Trump has promised Zinc prices surged more than 3 percent tracking gains in LME prices amid stock
draws. Premiums for zinc in China jumped by $10 to $155 a tonne, the highest in nearly three years, as the gap between local and
global prices turned favourable for imports. China is likely to step up imports of refined zinc from this month, industry sources said, as
dwindling global supplies of concentrate hit local output of the metal. LME data showed 'on-warrant' or available zinc stocks fell to
170,200 tonnes Nickel prices gained tracking rise in LME nickel closed up 2 percent at $9,360 as dollar weakness cushioned prices,
but the outlook was tainted by investors cutting exposure to metals on concerns over China demand concerns. The global refined
nickel market swung into a small surplus in March after an increase in production outpaced steady global demand, industry data
showed. Global nickel market was in a surplus of 3,300 tonnes during the first three months of 2017, according to the World Bureau
of Metal Statistics (WBMS

RECOMMENDATION : BUY ALUMINIUM @ 123.5 SL 120 TGT 126.5-129 BUY COPPER @ 366 SL 360 TGT 372-78 BUY ZINC @ 165.50 SL
162 TGT 170-173 BUY NICKEL @ 595 SL 570 TGT 615-630

ENERGY

FUNDAMENTAL : Last week, Crude oil prices gained on growing optimism that big producing countries will extend output cuts to
curb a persistent glut in crude. Since the beginning of March, crude prices have swung from over $56 a barrel to under $47 as market
participants were divided over the impact of rising output from the United States versus production cuts by the Organization
of Petroleum Exporting Countries (OPEC) and other oil producers, including Russia But market watchers are growing more confident
that OPEC, Russia and other big producers will extend cuts of almost 1.8 million barrels per day (bpd) until the end of March 2018. U.S.
producers are not party to any agreements capping production. Crude oil exports from Saudi Arabia rose by 275,000 barrels a day
in March from February and stockpiles rose, official data showed U.S. energy companies added oil rigs for an 18th week in a row, the
second-longest such streak on record, as expectations of higher crude prices have motivated drillers to boost monthly shale production
to its highest level since mid-2015. Drillers added eight oil rigs in the week to May 19, bringing the total count to 720, the most since
April 2015, energy services firm Baker Hughes Inc said

RECOMMENDATION : BUY CRUDE @ 3200 SL 3080 TGT 3340-3450 BUY NAT.GAS @ 206 SL 197.5 TGT 215.50-224

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29 MAY ,2017

Commodity Corner
Forex Corner
Market Recap :

The Indian rupee on Monday weakened against the US

dollar tracking losses in the Asian currencies markets.

The 10-year bond yield was trading at 6.667% com-

pared to its previous close of 6.652%. Bond yields and
prices move in opposite directions.

The dollar index, which measures the US currencys

strength against major currencies, was trading at
97.386, down 0.06% from its previous close of
97.442 .

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 64.80-64.40 with SL of 65.20for target of
64.25-66.06.

USD/INR
Level S2 S1 CP R1 R2 High Low Close
USD/INR 64.06 64.25 64.63 64.82 65.20 65.00 64.43 64.45

EUR/INR
Level S2 S1 CP R1 R2 High Low Close
EUR/INR 71.62 71.95 72.52 72.85 73.43 73.09 72.19 72.28

GBP/INR
Level S2 S1 CP R1 R2 High Low Close
GBP/INR 82.32 81.79 83.35 83.88 84.91 84.37 82.81 82.86

JPY/INR
Level S2 S1 CP R1 R2 High Low Close
JPY/INR 57.34 57.72 58.09 58.47 58.84 58.45 57.70 58.11

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29 MAY ,2017

J Street Recommendations Report Card

Nifty last week opened at 9480.25, attained a low at 9341.65 and moved up to 9604.90. Nifty closed
the week at 95959.10 thereby showed a net rise of 167 point on week to week basis. Hold long position
with a stop loss of 9300. Expect higher range of 9686-9949 to be tested. Overall expect Nifty to move to-
wards 10500. Weaker opening and intra-week correction to 9513-9422 can be used for buying with a
stop loss of 9300.

Top Fundamental Stocks

Absolute
Stocks Rec. Date CMP on Rec. CMP Target Return @ Status
CMP
Petronet 20/02/2017 400 438 490 10% Buy
Escorts 06/02/2017 383 681 590 78% Buy
Edelweiss financial 16/01/2015 117 178 175 52% Profit Book

IOC Ltd 27/02/2017 376 416 470 11% Buy

Marico 20/02/2016 255 317 340 24% Buy

Voltamp transformer 13/02/2017 925 1222 1120 25% Buy

Mothersumi 03/04/2017 376 445 440 18% Buy

Lic hsg Finc 27/03/2017 608 704 720 16% Buy

Asian Paints 10/03/2017 1030 1148 1180 11% Buy
Nbcc india 20/03/2017 175 196 210 12% Buy
Alembic Pharmaceuti-
30/08/2016 630 538 732 -15% Buy
cals
Wonderla 25/04/2016 387 375 498 -3% Buy

Mold Tek Pack 04/04/2016 49 48 179 -2% Buy

Welspun syntex/AYM 23/11/2015 121 79 223 -35% Buy

Ahluwalia contracts 24/08/2015 235 375 368 60% Buy

Infinite Computer Sol. 20/07/2015 190 209 255 10% Buy

Sadbhav Engineering
04/05/2015 298 318 430 7% Buy
Ltd.
M&M 12/01/2015 1238 1354 1450 9% Buy
PTC India Fin. Ser. 07/07/2014 39 45 45 15% Profit book

Focus on Quality, Rather than Quantity, of Stocks.

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29 MAY ,2017

J Street Short Term Call Status

Sr. BUY/ TRIGGER %
No.
DATE STOCK RANGE RANGE TGT SL STATUS
SELL PRICE RETURN
1 11-Apr-17 BATAINDIA BUY 565 575 570.00 600.00 550 EXPIRE .

2 12-Apr-17 IGL BUY 1025 1038 1031.50 1080.00 998 TA 4.6

INDUSIND-
3 13-Apr-17 BUY 1430 1455 1442.50 1520.00 1392 EXPIRE .
BANK
4 17-Apr-17 PEL BUY 2230 2260 2245.00 2358.00 2162 TA 4.6

5 18-Apr-17 CENTURYTEX BUY 1120 1130 1125.00 1185.00 1084 TA 4.5

6 19-Apr-17 COALINIA SELL 283 278 280.50 267.00 290 EXPIRE

7 20-Apr-17 POWERGRID BUY 208 212 210.00 221.00 201 SL -3.6

8 21-Apr-17 APOLLOTYRE BUY 237 243 240.00 253.00 229 TA 4.8

9 24-Apr-17 DABUR BUY 287 293 290.00 306.00 279 SL -3.4

10 25-Apr-17 BHARATFORG BUY 1130 1142 1136.00 1186.00 1096 EXPIRE

11 26-Apr-17 GODREJIND BUY 532 541 536.50 563.00 516 TA 4.6
12 27-Apr-17 ITC BUY 289 292 290.50 304.00 281 SL -3.6

13 2-May-17 GAIL BUY 420 425 422.50 441.00 408 EXPIRE

14 3-May-17 ARVIND BUY 406 414 410.00 426.00 395 TA 4

15 4-May-17 ONGC BUY 188 192 190.00 202.00 181 SL -3.8
16 5-May-17 EXIDEIND BUY 235 240 237.50 251.00 228 TA 4.2

17 8-May-17 CADILAHC BUY 462 466 464.00 484.00 452 TA 4.2

18 9-May-17 INFY BUY 938 946 942.00 982.00 914 TA 4.2

19 10-May-17 GODREJIND BUY 562 572 567.00 594.00 546 TA 4.3

20 11-May-17 NIITECH BUY 523 532 527.50 554.00 507 TA 4.4
21 12-May-17 AMARAJABAT BUY 917 928 922.50 964.00 894 OPEN

22 15-May-17 TVSMOTORS BUY 510 520 515.00 543.00 497 TA 4.3

23 16-May-17 GRASIM BUY 1166 1180 1173.00 1226.00 1134 SL -3.8

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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 17-May-17 RAYMOND BUY 785 795 790.00 828.00 763 SL -3.6

25 18-May-17 PIDILITIND BUY 770 780 775.00 812.00 749 TA 4.2

26 19-May-17 WIPRO BUY 520 530 525.00 551.00 503 OPEN .

27 22-May-17 MOTHERSUMI BUY 425 435 430.00 452.00 411 TA 4.1

28 23-May-17 ZEEL BUY 512 522 517.00 545.00 498 OPEN .

29 24-May-17 M&M BUY 1320 1335 1327.50 1387.00 1282 OPEN .

30 25-May-17 MINDTREE BUY 508 514 511.00 536.00 492 TA 4.3

STATUS CALLS RATIO

TA+PB 15 71.42

SL+EXIT 06 28.58

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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