Vol.

: 359
09 OCT ,2017

Index

Market View 1
MARKET VIEW
Company Update 2

Around the Much to the expectations of the market, The Government announced big PSU bank re-
Economy 3 capitalization plan last week. The announcement was expected by the market but the

Knowledge Corner 3 quantum is really surprising. The Government has taken very bold decision and an-
nounced a package of Rs. 2.11 lakh crore to support the PSU banking system marred by
Mutual Fund 4 NPA problem. The effect of bankruptcy and insolvency act is being felt in the corporate
world and remarkable development has taken place to address the problem of default-
Commodity Corner 5
ing companies with maximum speed. Within the span of six months, EOI (Expression Of
Forex Corner 6 Interest) of more than ten companies are received yesterday for Essar Steel. In short
the reforms introduced by The Government have started to make impact in the econ-
Report Card 7 omy. The Government is seriously addressing structural issues in the economy and the
Short Term Call Status 8 recapitalization decision is a glaring example of the same. Because of the recapitaliza-
tion, the PSU banks will become more competitive and will be able to lend with ease.
The economy as a whole will get huge fund which will trigger lending, liquidity and em-
ployment in the system. Under the circumstances the market has given thums up to
Special Contributors this big bang reform and shares of PSU banks have surged meaningfully.
Kunal Shah
Dhaval Ghodasara Technically the market has crossed an important level of 10200 and likely to go to
10600-10700 level with strong support of 10200-10100.

For suggestions, feedback

and queries
jstreet@jhaveritrade.com
K a m a l J h a v e ri
M D- Jha ve ri S e curi ti e s

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09 OCT ,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 Y1 9 E E P S with a
t a r g e t p r ic e o f R s .3 84 & P /E o f 2 1 .

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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09 OCT ,2017

Around The World

Weekly Market Recap :
The government on Tuesday, 24 October 2017, decided to take a massive step to capitalize public sector banks to the
tune of about Rs 2.11 lakh crore over the next two years. In order to further optimize the efficiency of movement of
goods and people across the country the govt also announced BharatMala project worth Rs.7 lakh crore and to con-
struct 83000km of roads in next two years.

The Markit/Nikkei Japan Manufacturing flash Purchasing Managers Index (PMI) fell to a seasonally adjusted 52.5 in
October from a final reading of 52.9 in September. China's Communist Party revealed its new top leadership helmed by
President Xi Jinping, breaking with recent precedent by failing to include a clear successor among the seven-man line-
up.

Market Eye Week ahead :

Mahindra Logistics IPO opens on Tuesday, 31 October 2017, New India Assurance Company IPO opens on Wednes-
day, 1 November 2017 and the IPO of Khadim India opens for subscription on Thursday, 2 November 2017. Markit Eco-
nomics will unveil the result of a monthly survey on the performance of India's services sector in October on 3 rd Novem-
ber and Manufacturing sector on 1 st Nov.

On the global front, Eurozone business climate data for the month of October 2017 is slated to release on Monday, 30
October. On the same day, Japan preliminary industrial production data for the month of September 2017 is due. China
manufacturing PMI data for October 2017 is due on Wednesday, 1 November 2017. On the same day, the crucial US
Federal Reserve interest rate decision is also due.

Key Events / Factors to Watch

1. Mon : Re sults: HDFC, Infratel, Marico,Tata steel
2. Tue : Results: Airtel,Capf,JSW steel, Ajanta pharma
3. Wed : Result: Apollo tyre, FLFL, Hero moto, Godrej CP
4. Thu: Re sult: Vedl, Natco pharma,deepak Ferti, Ccl products
5. Fri : Result: Godrej prop, Hindalco,Titan, Tata power.

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 inve s-
tors. A buyback also boosts the proportional share of earnings a share is allocated.A company may feel its shares are underva lued
and buy them back to provide investors with a return.

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09 OCT ,2017

Mutual Fund Corner

Top 10 Sector Break-Ups
Fund Name
Sector Weights Fund (% )
Scheme Name Motilal Oswal focused Multicap 35 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 W eek Hi gh (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

Expens e Ratio (%) 2.32 2.41 2.44 - Cash 1.14

Fund Performance v/s Nifty 50 Fund Style

Investment Style
Growth Blend Value
Large
Capit alization

Medium

Small

Fund
Nifty 500
(Rebased to 10,000) Source : - www.valueresearchonline.com

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09 OCT ,2017

Commodity Corne r

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 : BUY GOLD @ 29250 SL 29000 TGT 29650-900 BUY SILVER @39250 SL 38500 TGT 40100-40850

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 @ 138 SL 134 TGT 143-47 BUY COPPER @ 433 SL 425 TGT 444-454 BUY ZINC @ 212 SL 208
TGT 218 BUY NICKEL @ 690 SL 670 TGT 710-30.

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 @ 3300 SL 3200 TGT 3420-3480 BUY NAT.GAS @ 187 SL 182 TGT 192-98.

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Vol.: 359
09 OCT ,2017

Commodity Corne r
Forex Corner
Market Recap :

The The Indian rupee on Monday strengthened

against the US dollar, tracking gains in local eq-
uity and Asian currencies markets.

Bond yields hit near six-month high. The 10-year

bond yield was at 6.831% compared to its previ-
ous close of 6.805%. Bond yields and prices
move in opposite directions.

The dollar index, which measures the US cur-

rencys strength against major currencies, was
trading at 94.812.

Market Eye Week ahead :

The USDINR On daily chart pair above all short term, medium term which is 20, 100 and below long term moving
average 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 65.30-65.00 with SL of 66.00 for target of
64.60-64.20.

USD/INR
Level S2 S1 CP R1 R2 High Low Close
USD/INR 64.74 64.89 64.99 65.14 65.24 65.09 64.84 65.04

EUR/INR
Level S2 S1 CP R1 R2 High Low Close
EUR/INR 76.36 76.45 76.53 76.62 76.70 76.60 76.43 76.55

GBP/INR
Level S2 S1 CP R1 R2 High Low Close
GBP/INR 85.45 85.67 86.03 82.25 86.61 86.39 85.81 85.89

JPY/INR
Level S2 S1 CP R1 R2 High Low Close
JPY/INR 57.86 57.94 57.99 58.07 58.12 58.05 57.92 58.01

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Vol.: 359
09 OCT ,2017

J Street Recommendations Report Card

Nifty last week opened at 10176.65, attained a low at 10124.50 and moved up to 10366.15. Nifty attained a high at
1036.15 thereby showed a net rise of 1.74% on week to week basis. On the upside, a sustained rise and close above 10400
with bullish candle can set a rally towards 11399-11898-12456.Weekly support will be at 10271-10176-10100. Weaker
opening and correction first to 1027-10176 can be used for buying with a stop loss of 10100.

Top Fundamental Stocks

Absolute
Stocks Rec. Date CMP on Rec. CMP Target Return @ Status
CMP
KEC International 11/09/2017 310 303 384 -2% Accumulate

Maruti Suzuki 30/06/2017 7220 8250 9000 14% Accumulate

DHFL Ltd 27/06/2017 430 615 590 43% Buy

Manappuram Fi-
30/05/2017 87 99 130 14% Buy
nance
Godrej Properties 12/05/2017 508 668 630 3% Accumulate

Tvs Motor 24/04/2017 485 728 650 50% Buy

DCB Bank 17/04/2017 175 180 310 3% Buy

REC Ltd 27/03/2017 175 178 240 2% Buy

Petronet 20/02/2017 200 259 290 30% Accumulate

Escorts 06/02/2017 410 740 790 80% Buy

Edelweiss financial 16/11/2016 117 271 275 132% Buy

IOC Ltd 27/02/2017 376 415 490 10% Buy

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

Voltamp trans-
13/02/2017 980 1170 1360 19% Buy
former
Mothersumi 03/04/2017 300 365 495 22% Buy

Lic hsg Finc 27/03/2017 608 621 830 2% Buy

Asian Paints 10/03/2017 1030 1188 1260 15% Buy

Nbcc india 20/03/2017 175 262 225 50% Buy

M&M 12/01/2015 1238 1381 1450 12% Buy

A stock market is a place where people know the price of everything , but the value of Nothing.

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Vol.: 359
09 OCT ,2017

J Street Short Term Call Status

Sr. BUY/ TRIGGER %
No.
DATE STOCK RANGE RANGE TGT SL STATUS
SELL PRICE RETURN
1 11-Sep-17 ASHOKLEY BUY 114 117 115.50 125.00 110 TA 4.2

2 12-Sep-17 BERGEPAINT BUY 264 268 266.00 283.00 254 SL -3.6

3 13-Sep-17 CAPF BUY 800 812 806.00 858.00 772 SL -3.4

4 14-Sep-17 SUNPHRMA BUY 500 512 506.00 536.00 481 TA 3.6
5 15-Sep-17 KANSAINER BUY 500 512 506.00 540.00 483 SL -3.8

6 18-Sep-17 L&TFIN BUY 203 207 205.00 216.00 198 EXIT .

7 19-Sep-17 BATAINDIA BUY 728 740 734.00 760.00 707 TA 3.6

8 20-Sep-17 KAJARIACER BUY 728 740 734.00 778.00 706 SL -3.8

9 21-Sep-17 KTKBANK BUY 162 165 163.50 174.00 157 SL -3.8

10 22-Sep-17 TECHM BUY 454 462 458.00 486.00 443 EXIT .

11 25-Sep-17 VAKRANGEE BUY 510 520 515.00 545.00 492 TA 4.2
12 26-Sep-17 GODREJIND BUY 568 578 573.00 608.00 551 TA 4.3

13 27-Sep-17 HEXAWARE BUY 267 272 269.50 284.00 260 TA 4.1

14 28-Sep-17 OIL BUY 346 352 349.00 368.00 338 TA 4.4

15 3-Oct-17 ASHOKLEY BUY 121 125 123.00 132.00 117 TA 4.4
16 4-Oct-17 MINDTREE BUY 475 483 479.00 512.00 464 EXIT .

17 5-Oct-17 KOTAKBANK BUY 1020 1032 1026.00 1071.00 998 TA 4.4

18 6-Oct-17 CENTURYTEX BUY 1270 1285 1277.50 1336.00 1234 TA 4.2

19 9-Oct-17 BAJAJFINACE BUY 1920 1935 1927.50 2022.00 1864 SL -3.6

20 10-Oct-17 BATAINIDA BUY 756 768 762.00 802.00 736 TA 4.2
21 11-Oct-17 MOTHERSUMI BUY 343 351 347.00 365.00 334 TA 4.1

22 12-Oct-17 PETRONET BUY 255 262 258.50 274.00 247 TA 4.2

23 13-Oct-17 BRITANNIA BUY 4555 4590 4572.50 4820.00 4420 OPEN .

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09 OCT ,2017

J Street Short Term Call Status

BUY/ TRIGGER %
Sr. No. DATE STOCK RANGE RANGE TGT SL STATUS
SELL PRICE RETURN
24 16-Oct-17 KOTAKBANK BUY 1070 1096 1083.00 1146.00 1038 SL -3.6

25 17-Oct-17 HINDUNILVR BUY 1270 1291 1280.50 1342.00 1236 SL 3.4

26 18-Oct-17 TATACHEM BUY 716 728 722.00 761.00 696 TA 4.4

27 23-Oct-17 IBULHSGFIN BUY 1350 1374 1362.00 1436.00 1318 SL -3.2

28 24-Oct-17 GRASIM BUY 1172 1190 1181.00 1242.00 1138 OPEN

29 25-Oct-17 GSFC BUY 144 148 146.00 154.00 141 OPEN

30 26-Oct-17 PFC BUY 140 143 141.50 151.00 136 OPEN

STATUS CALLS RATIO

TA+PB 14 60.86

SL+EXIT 09 39.14

TOTAL 23 100.00

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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09 OCT ,2017