Vol.

: 366
26 MAR ,2018

Index

Market View 1 MARKET VIEW

200 DMA IS DECISI VELY BROKEN
Company Update 2

Around the 26 MAR 2018

Economy 3
I n l a s t ma n y a r t i c l e s , W e h a v e d i s c u s s e d t h a t b e c a u s e o f
Knowledge Corner 3 m a n y N a t i o n a l a n d I n t e r n a t i o n a l i s su e s , t h e ma r k e t i s i n c o n s o l i d a -
t i o n mo d e wi t h n e g a t i v e b i a s a n d a n y f a l l b e l o w 2 0 0 D M A wi l l p r o v e
Mutual Fund 4
quite negative for the market. The Trade W ar started by President
Commodity Corner 5 T r u mp h a s p r o v i d e d t h e r e a s o n f o r p a n i c s e l l i n g i n t h e G l o b a l ma r -
k e t . I n c r e a s i n g p o l i t i c a l t u r mo i l a n d e v e r i n c r e a s i n g f r a u d c a s e s i n
Forex Corner 6
PSU Banks led to fall in risk appetite of investors. Though , the fun-
Report Card 7 d a me n t a l o f e c o n o m y a n d t h e c o r p o r a t e e a r n i n g s s u g g e s t i mp r o v e -

Short Term Call Status 8 m e n t , t h e m a r k e t i s i g n o r i n g t h e d a t a a n d t h e s p o i l e d s e n t i me n t h a s

triggered series of fall.

Special Contributors
Kunal Shah
Dhaval Ghodasara
T e c h n i c a l l y , t h e ma r k e t c a n ma k e n e w l o ws a n d t h e d o o r s f o r
50% retrace men t of rise c an be a c hieved which is placed near to
9 5 0 0 a n d 9 2 0 0 – 9 0 0 0 r a n g e . T h e ma r k e t h a s t e n d e n c y t o o v e r
s h o o t i n b o t h t h e d i r e c t i o n . U n d e r t h e c i r c u ms t a n c e s , i t i s v e r y i m-
p o r t a n t t o p r o t e c t t h e c a p i t a l a n d i n v e s t wi s e l y . T h e s e l e c t i o n o f t h e
s t o c k i s t h e m o s t i m p o r t a n t f a c t o r i n t h e c o mi n g y e a r . A t s o m e p o i n t
o f t i me , t h e m a r k e t wi l l l o o k c h e a p f r o m v a l u a t i o n v i e w p o i n t a n d
t h a t wi l l b e t h e z o n e f r o m w h e r e b u y i n g c a n e me r g e .

For suggestions, feedback

and queries
jstreet@jhaveritrade.com
Kama l Jhaver i
MD- Jha ver i Securities

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Vol.: 366
26 MAR ,2018

Company Update : RELIANCE NIPPON LIFE ASSET MANAGEMENT LTD

Company Basics Financial Basics Share Holding Pattern

BSE Code 540767 FV (`) 10.00 Holder's Name % Holding
EPS (`) (TTM) 7.76 Promoter 85.75
NSE Symbol RNAM Public 14.25
P/E (x) (TTM) 34.00
EQUITY (` in Cr.) 51.42 P/BV (x) (TTM) 35.82
MKT.CAP (` in Cr.) 15710

Outlook and valuation : We recommend BUY on the stock and value RNAM at 9x F Y 1 9 E E P S with
a ta r get pr i c e of Rs. 3 2 0 & P / E of 3 6 .

Company Overview :
Reliance Nippon Life Asset Management Ltd (RNAM) is the second largest profitable and the third largest in AUM
with a market share of 11.4%. It is promoted by the ADAG group and Nippon Life of Japan. It provide various ser-
vices such as Mutual fund, Portfolio Management (PMS), alternative funds and offshore funds.

Investment Rationale for Reliance Nippon Asset management:

 It is one of the largest AMC and second most profitable with a market share of 11.4%.

 Strong growth in AUM led by macro factors like rise in financial savings, growing demand from mutual fund,
foot-print in to the smaller towns.

 RNAM has been having strong return ratios in excess of 20% for the last three years. With revenue growth of
7.8%, 9.6%, 13.1% and 14.4% for the last four years the company is strongly placed.

 The growing trend of mutual fund and its acceptance by public as an investment tool also further pro-
vide the room for the growth of the mutual fund.

 The industry is expected to grow at a 25% CAGR which provides the further growth opportunities. Mu-
tual funds are in a sweet spot.

 The Indian MF AUM is only the 18.3% of bank deposit which is very low in comparison to other devel-
oped countries, provide significant scope for the growth of mutual fund industry in the coming years.

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Vol.: 366
26 MAR ,2018

Around The World

Weekly Market Recap :
Key benchmark indices registered modest losses in the week ended Friday, 16 March 2018, pulled by the sharp
fall in the last trading session amid renewed concerns of global trade war and policy uncertainties of Trump ad-
ministration in US, the world's biggest economy.

Domestic stocks logged sharp gains on the first trading day of the week on Monday, 12 March 2018 with the ba-
rometer index, the S&P BSE Sensex, and the Nifty 50 index, hitting their highest closing levels in 1-1/2 weeks, on
upbeat global stocks. The Sensex jumped 610.80 points or 1.83% to settle at 33,917.94, its highest closing level
since 1 March 2018.
.

Market Eye Week ahead :

The expiry of March futures & options (F&O) contracts, global macroeconomic data, trend in global markets, invest-
ment by foreign portfolio investors (FPIs) and domestic institutional investors (DIIs), the movement of rupee against
the dollar and crude oil price movement will dictate the trend on the bourses next week.

On the global front, US final Q4 gross domestic product (GDP) data will be unveiled on Wednesday, 28 March
2018. The US economy advanced an annualized 2.5% on quarter in the last three months of 2017, below an ad-
vance reading of 2.6% and 3.2% in the previous period.

Key Events / Factors to Watch

1. Mon : Board meet: DISH TV,NMDC LTD.
2. Tue : Dividend: CRISIL LTD, DFL LTD.
3. Wed : EGM: Indian overseas bank.
4. Thu: -
5. Fri : Board meet : just dial ltd , sudarshan chemical industries ltd.

Knowledge Corner :
BONUS ISSUE
Bonus shares are additional shares given to the current shareholders without any additional cost, based upon the number of
shares that a shareholder owns.

Why it is important?

Companies issue bonus share in order to attract more retail investors. It is also done in order to reward the existing share-
holders with the shares. Bonus share increase the liquidity in the market but also reduces the price per share.

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Vol.: 366
26 MAR ,2018

Mutual Fund Corner

Top 10 Sector Break-Ups
Fund Name
Scheme Name Most Focused Multicap 35 Fund
Sector Weights Fund (%)
Financial 43.49
AMC Motilal Oswal Asset management Co Ltd
Energy 14.38
Type Open Ended & Equity– Multicap Automobile 13.16
Healthcare 9.76
Category Open-ended
FMCG 10.46
Launch Date April 2014 Services 4.45
Con.Durable 3.10
Fund Manager Gautam Sinha Roy
Textiles -
Net Assets Chemicals -
Rs.11411.2 cr as on Dec 31, 2017
( In crore )
-
History 2014 2015 2016 2017 Risk Analysis
Volatility Measures
NAV (Rs) 15.46 17.90 19.57 28.27
Standard Deviation 14.09
Total Return (%) - 15.74 9.35 44.42 Sharpe Ratio 1.13
Beta 0.86
Rank (Fund/Category) - 1/173 28/143 21/118
R-Squared 0.65
Alpha 10.27
52 Week High (Rs) 15.54 19.05 21.51 28.28

52 Week Low (Rs) 9.94 15.28 15.43 19.62 Composition (%)

Equity 98.80
Net Assets (Rs.Cr) 659.04 2958.64 4543.33 10287.74 Debt 0.00

Expense Ratio (%) 1.28 1.61 1.62 1.47 Cash 1.20

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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Vol.: 366
26 MAR ,2018

Commodity Corner

BULLION
FUNDAMENTAL: Bullion prices rallied on a faltering dollar and equities as investors scurried to safety after U.S. President Donald Trump
moved towards long-promised anti-China tariffs, prompting a strict response from China amid fears of a global trade war. Trump signed a presiden-
tial memorandum that could impose tariffs on up to $60 billion of imports from China, but only after a 30-day consultation period that starts once a list is
published.China urged the United States to "pull back from the brink", while the Chinese commerce ministry unveiled plans to levy additional duties on
up to $3 billion of U.S. imports in response to the steel and aluminium tariffs. Investor appetite for a safe-haven asset such as gold rises dur-
ing times of geopolitical and financial uncertainties. Meanwhile, EU leaders were awaiting for the final word from Trump on whether the United
States would apply tariffs to European steel and aluminium, said German Chancellor Angela Merkel, and warned of a firm response if he did.

RECOMMENDATION : BUY GOLD @ 30500 SL 30150 TGT 30900-31200 ,BUY SILVER @ 38500 SL 38000 TGT 39100-39600

BASE METALS
FUNDAMENTAL : China's fiscal revenue surged 15.8 percent in the first two months of this year from a year earlier, the finance
ministry said in a statement on its website. Government spending for the Jan-Feb period rose16.7 percent on-year, the min-
istry said. The surge in revenue and spending in January-February was related to the celebration of Chinese Lunar New
Year and did not reflect the wider trend in China's fiscal revenue and expenditure, according to the statement.Zinc dropped
amid given high inventories and a slow recovery of consumption. Despite production cuts from maintenance works at some
smelters, China’s output of zinc is likely to rise 8.5% in the first quarter of 2018 from the same period in 2017

RECOMMENDATION : SELL ALUMINIUM @ 134.00 SL 137.00 TGT 131.00-126.00,SELL NICKEL @ 855.00 SL 875.00 TGT
825.00-810.00. ,SELL ZINC @ 212.00 SL 216.00 TGT 207.00-203.00., SELL COPPER @ 435.00 SL 444.00 TGT 424.00-416.00.

ENERGY

FUNDAMENTAL : Last week, crude oil gained pushed up by Saudi plans for OPEC and Russian led production curbs intro-
duced in 2017 to be extended into 2019 in order to tighten the market. Saudi Arabian Energy Minister Khalid al-Falih, said
that OPEC members will need to continue coordinating with Russia and other non-OPEC oil-producing countries on supply
curbs in 2019 to reduce global oil inventories. The Organization of the Petroleum Exporting Countries (OPEC), of which
Saudi Arabia is the de-facto leader, as well as a group of non-OPEC countries led by Russia, struck an agreement in Janu-
ary 2017 to remove 1.8 million barrels per day (bpd) from markets to end oversupply.

RECOMMENDATION : BUY CRUDEOIL @ 4180 SL 4080 TGT 4340-4400. ,SELL NAT GAS @ 172.00 SL 178.00 TGT 164.00-
158.00.

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Vol.: 366
26 MAR ,2018

J Street Recommendations Report Card

Exit long and sell on rise to 10284-10389 with a stop loss of10500.Expect lower range of 10090-9986-9792 to be tested.
The retracement level of the rise from 7893 to 11171 is placed at 9919 and the same could be tested with volatility.
Further retracement levels are placed at 9532-9145. Exit long and sell on rise to 10059-10166 with a stop loss
of10228.Expect lower range of 9890-9783-9615 to be tested.

Top Fundamental Stocks

Absolute
Stocks Rec. Date CMP on Rec. CMP Target Return @ Status
CMP
Reliance Nippon asset 5/2/2018 270 241 320 12% Accumulate

KEC International 11/9/2017 310 385 384 -19% Accumulate

Maruti Suzuki 30/06/2017 7220 8765 10200 -17% Buy

DHFL Ltd 27/06/2017 430 502 660 14% Buy

Manappuram Finance 30/05/2017 87 108 130 19% Accumulate

Godrej Properties 12/5/2017 508 730 740 30% Buy

Tvs Motor 24/04/2017 485 619 790 21% Buy

DCB Bank 17/04/2017 175 162 230 8% Buy

REC Ltd 27/03/2017 175 125 220 -40% Accumulate

Petronet 20/02/2017 200 225 290 11% Buy

Escorts 6/2/2017 410 806 790 49% Buy

Edelweiss financial 16/11/2016 117 236 300 50% Buy

IOC Ltd 27/02/2017 188 167 490 -12% Accumulate

Marico 20/02/2016 255 329 370 22% Buy

Mothersumi 3/4/2017 300 315 460 4.7% Buy

Lic hsg Finc 27/03/2017 608 544 700 -11% Buy

Asian Paints 10/3/2017 1030 1117 1260 7.7% Buy

Nbcc india 20/03/2017 175 190 270 7.8% Buy

M&M 12/1/2015 619 746 1550 17% Buy

“Go for a business that any idiot can run-because sooner or later, any idiot probably is going to run it.”

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Vol.: 366
26 MAR ,2018

J Street Short Term Call Status

Sr. BUY/ TRIGGER %
No.
DATE STOCK RANGE RANGE TGT SL STATUS
SELL PRICE RETURN
1 7-Feb-18 OIL BUY 364 352 358.00 366.00 321 TA 3.2

2 8-Feb-18 ONGC BUY 188 192 190.00 202.00 181 SL -3.1

3 9-Feb-18 INFRATEL SELL 356 348 352.00 331.00 369 TA 4.4

4 12-Feb-18 RELCAPITAL BUY 494 502 498.00 521.00 476 TA 3.4

5 14-Feb-18 PIDILITIND BUY 886 900 893.00 946.00 852 EXIT

6 15-Feb-18 ASHOKLEY BUY 134 138 136.00 143.00 128 TA 4.1

7 16-Feb-18 GAIL BUY 472 480 476.00 506.00 458 SL -3.1

8 19-Feb-18 INFY BUY 1120 1138 1129.00 1189.00 1088 TA 4.4

9 20-Feb-18 VGUARD BUY 231 235 233.00 251.00 224 EXIT

10 21-Feb-18 APOLLOTYRE BUY 262 268 265.00 279.00 253 TA 4.3

11 22-Feb-18 MINDTREE BUY 720 732 726.00 768.00 693 TA 4.3

12 26-Feb-18 HINDZINC BUY 323 329 326.00 348.00 314 TA 4.2

13 27-Feb-18 VOLTAS BUY 610 618 614.00 645.00 587 TA 4.1

14 28-Feb-18 GODREJCP BUY 1078 1095 1086.50 1142.00 1046 TA 4.2

15 1-Mar-18 BHARATFORG BUY 781 792 786.50 824.00 756 SL -3.6

16 5-Mar-18 COALINDIA BUY 308 314 311.00 328.00 300 SL -3.2

17 6-Mar-18 TECHM BUY 628 640 634.00 651.00 604 TA 3.6

18 7-Mar-18 MCDOWELL SELL 3045 3020 3032.50 2830.00 3171 TA 4.2

19 8-Mar-18 HCLTECH BUY 938 960 949.00 998.00 912 EXIT

20 9-Mar-18 VGUARD BUY 228 233 230.50 246.00 221 SL -3.2
21 12-Mar-18 ASHOKLEY BUY 144 148 146.00 151.00 139 TA 3.2

22 13-Mar-18 INFY BUY 1170 1195 1182.50 1248.00 1134 OPEN

23 14-Mar-18 NCC BUY 122 126 124.00 134.00 118 SL -3.6

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Vol.: 366
26 MAR ,2018

J Street Short Term Call Status

BUY/ TRIGGER %
Sr. No. DATE STOCK RANGE RANGE TGT SL STATUS
SELL PRICE RETURN
24 15-Mar-18 KPIT BUY 225 232 228.50 236.00 215 OPEN 3.4

25 16-Mar-18 JUBLFOOD BUY 2130 2160 2145.00 2280.00 2052 TA 4.4

26 19-Mar-18 M&M BUY 735 746 740.50 782.00 712 OPEN

27 20-Mar-18 MARICO BUY 298 305 301.50 326.00 289 TA 4.2

28 21-Mar-18 HEXAWARE BUY 370 376 373.00 398.00 356 OPEN

29 22-Mar-18 M&MFIN BUY 443 452 447.50 476.00 424 OPEN

30 23-Mar-18 TITAN BUY 860 872 866.00 912.00 836 TA 4.4

STATUS CALLS RATIO

TA+PB 16 69.56

SL+EXIT 07 30.44

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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Vol.: 366
26 MAR ,2018