Vol.

: 336
10 APR ,2017

Index
MARKET VIEW
Market View 1

Company Update 2 MARKET EYE ON INDIA INCS RESULT

Around the
Economy 3 The next major trigger for the market is Q4 results of India Inc, which com-
panies will commence announcing from next week. IT major Infosys will announce Q4
Knowledge Corner 3
March 2017 result on Thursday, 13 April 2017. Domestic and global macroeconomic
Mutual Fund 4 data, trend in global markets, investment by foreign portfolio investors (FPIs) and do-

Commodity Corner 5 mestic institutional investors (DIIs), the movement of rupee against the dollar and
crude oil price movement will dictate trend on the bourses in week ahead. Domestic
Forex Corner 6
bourses will remain shut on Friday, 14 April 2017, on account of Dr. Baba Saheb Am-
Report Card 7 bedkar Jayanti and Good Friday. Global triggers or geopolitical events are most impor-
tant indicators for market in the short-term, especially when Indian equity market is
Short Term Call Status 8
trading at all-time highs and so is the US any negative trigger from there could spook
Editor & Contributor the markets into correcting.
Darshana Mishra

On the macro front, the government will announce monthly inflation data
Special Contributors
based on consumer price index (CPI) for March 2017 on Wednesday, 12 April 12
Kunal Shah
Dhaval Ghodasara 2017. The government will announce monthly inflation data based on wholesale price
index (WPI) for March 2017 on Friday, 14 April 2017. On the global front, China will un-
veil Consumer Price Index (CPI) data for March 2017 on Wednesday, 12 April 2017.
US Producer Price Index (PPI) data for March 2017 will be unveiled on Thursday, 13
April 2017. T h e m a r k e t m a y r e m a i n r a n g e d b o u n d t i l l t h e o u t c o m e o f
corporate earning season Till then there is strong support at 8900 -
9000 and strong resistance at 9280 and 9350.
For suggestions, feedback
and queries
[email protected]
Kamal Jhaveri
MD- Jhaveri Securities

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Company Update : MARICO LTD

Company Basics Financial Basics Share Holding Pattern
BSE Code 531642 FV (`) 1.00 Holder's Name % Holding
EPS (`) (TTM) 6.39 Promoter 60.00
NSE Symbol MARICO P/E (x) (TTM) 46.32 Public 40.00

EQUITY (` in Cr.) 129.00 P/BV (x) (TTM) 14.70

MKT.CAP (` in Cr.) 38194.99

Outlook and valuation : We recommend ACCUMULATE on the stock as we see expect revenue to grow at 11%
CAGR over FY16-18E. This will be driven by volume growth in Parachute rigid packs, Saffola oil and VAHO helped by
capacity expansion at new plants. We see limited upside with stock trading at ~37x P/E of FY18E. (Target Price-
Rs.340)
Company Overview :
Marico Limited (ML), a leading Fast Moving Consumer Goods (FMCG) player was incorporated on 13th Octo-
ber 1988 under the name of Marico Foods Limited. Marios Products and Services in Hair Care, Skin Care and
Healthy Foods reach out to more than 20 countries in the Middle East, Asian sub-continent, Australia and
USA. With a extensive distribution network of more than 2.5 Million outlets in India and overseas, the company
markets well-known brands such as Parachute, Saffola, Kaya, Sundari and Fiancee to name few, most of
which enjoy leadership positions (No. 1 or No. 2), with significant market shares in respective categories.

Investment rationale for Marico Ltd

Strong brand presence in the domestic market.

Most of its products are major holder in FMCG products.

Marico has strong availability of Youth Products.

The company is entering into male products segment.

Innovation will be high in Foods, edible oils and premium products.

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Around The World

Weekly Market Recap :

The Reserve Bank of India (RBI) on Thursday, 6 April 2017, kept the policy repo under the liquidity adjustment facility (LAF) unchanged
at 6.25% and the reverse repo rate under the LAF is at 6% per cent, and the marginal standing facility (MSF) rate and the Bank Rate are
at 6.5%.The seasonally adjusted Nikkei India composite PMI output index increased to 52.3 in March, from 50.7

Overseas, geopolitical tensions intensified after the US military struck a Syrian airfield near Homs. US President Donald Trump said he
ordered the missile strikes following the deadly chemical attack that took place earlier in the week.

Market Eye Week ahead :

The next major trigger for the market is Q4 results of India Inc, which companies will commence announcing from next week. IT major
Infosys will announce Q4 March 2017 result on Thursday, 13 April 2017. Monthly inflation data based on consumer price index (CPI) for March
on 12 april & WPI Data would be released on 14th April.

On the global front, China will unveil Consumer Price Index (CPI) data for March 2017 on Wednesday, 12 April 2017. US Producer Price
Index (PPI) data for March 2017 will be unveiled on Thursday, 13 April 2017. US Core Consumer Price Index (CPI) data for March 2017
will be unveiled on Friday, 14 April 2017.

Key Events / Factors to Watch

1. Mon : - Dividend: Col Pal
2. Tue : -Reliance Defence
3. Wed : Dividend: Fag Bearings
4. Thu: Result: Infosys, R.Power, Bajaj corp
5. Fri : DCB Bank

Knowledge Corner :
EARNING PER SHARE (EPS)

The basic measurement of earnings is earnings per share or EPS. This measurement divides the earnings by the num-
ber of outstanding shares. Earnings (or growth towards positive earnings) tell you how healthy a company is.

Why EPS?
The reason you reduce earnings to a per share basis is to compare it with another company. Its important to note here
that the EPS is helpful in comparing one company to another, assuming they are competing companies of the same cate-
gory.

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Mutual Fund Corner

Top 10 Sector Break-Ups
Fund Name
Sector Weights Fund (%)
Scheme Name DSP BLACKROCK OPPOURTUNITIES FUND
Financial 30.91
AMC DSP Black Rock Investment Managers Automobile 4.37
Energy 10.82
Type Open Ended & Equity Multi Cap
Healthcare 6.61
Category Open-ended FMCG 6.50
Launch Date May 2000 Technology 7.39
Metals 6.71
Fund Manager Rohit Singhania June 2015 Construction 7.01
Net Assets (` Diversified 5.83
Rs. 1691.1 crore as on Feb 28, 2017
In crore ) Chemicals 3.51
History 2013 2014 2015 2016 Risk Analysis
Volatility Measures
NAV (Rs) 96.43 140.22 148.76 165.37
Standard Deviation 16.24
Total Return (%) 6.46 45.40 6.09 11.16 Sharpe Ratio 1.11
Beta 1.09
Rank (Fund/Category) 32/73 93/145 31/173 10/143
R-Squared 0.86
Alpha 10.60
52 Week High (Rs) 96.43 143.65 157.09 180.85

52 Week Low (Rs) 79.71 92.17 137.98 126.55

Composition (%)
Equity 94.65
Net Assets (Rs.Cr) 489.59 802.82 820.70 1266.32 Debt 0.07
Cash 5.28
Expense Ratio (%) 2.70 2.66 2.65 2.72

Fund Performance v/s Nifty 500 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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Commodity Corner

BULLION
FUNDAMENTAL: Bullion prices last week ended with mixed node where Gold prices dropped weighed by a rise in the dollar, which con-
tinued to recover from multi month lows, after the release of upbeat economic data. Silver prices gained with global political uncertainty,
the upcoming elections in Europe in particular, seen supporting prices of the metal. Federal Reserve official's seemingly dovish remarks
and uninspiring data on the U.S. economy tamped down the sanguine mood from earlier in the week. Earlier in the session, gold had
dropped by the most in over than three weeks. It failed to break resistance at its 200-day moving average, triggering early technical sell-
ing. An index of world stocks dipped on Friday as investors locked in profits, also boosting gold. Data showing the largest annual in-
crease in U.S. inflation in nearly five years and comments by the president of the New York Federal Reserve meanwhile reinforced ex-
pectations of U.S. interest rate hikes this year. Gold is underpinned in the coming months by doubts over Trump's ability to enact tax
cuts and investment spending and an uncertain political outlook in Europe.

RECOMMENDATION : BUY GOLD @ 28400 SL 28100 TGT 28900-29150 BUY SILVER @41600 SL 40800 TGT 42200-42900

BASE METALS

FUNDAMENTAL: Last week, base metals prices ended with mixed node where zinc prices dropped by more than three percent followed
by losses in lead prices and nickel prices whereas aluminium gained and copper settled flat. Zinc dropped due to concerns over failure in
output cut by zinc smelters. Zinc prices standouts among a brightening outlook for base metals, with supply constraints and China-driven
demand set to lift prices in coming months. Zinc mines in Huayuan County, Hunan Province were forced to slash or suspend production
recently since the region stepped up environmental protection. Some mines that had passed inspections were also affected by this
round of environmental protection and will delay restarts until late April or early May. Korea Zinc Inc, the world's third-largest zinc
smelter, has agreed to take a 15 percent drop in annual processing fees for 2017 as smelters grapple with a dearth of mine supply. The
South Korean firm agreed annual treatment charges with Canada's Teck Resources of $172 per tonne, citing unidentified people with
knowledge of the matter.

RECOMMENDATION : BUY ALUMINIUM @ 125.5 SL 122.5 TGT 127.5-129 BUY COPPER @ 377 SL 370 TGT 384-390 BUY ZINC @ 178.5 SL
175 TGT 180.5-183 BUY NICKEL @ 645 SL 622 TGT 675-690

ENERGY

FUNDAMENTAL : Crudeoil prices last week gained on a growing sense that OPEC and nonmember Russia would extend their production
cut, seeking to drive the market higher. The U.S. energy department released supply and demand figures for January, the latest month
available, saying the country's oil demand for that month was up 0.9 percent at 19.234 million barrels per day, while production rose
60,000 bpd to 8.835 million barrels. Energy services firm Baker Hughes said U.S. oil rigs increased by 10 to 662 in the week, making the
first quarter the strongest for oil rig additions since mid- 2011. There was a growing sense that the Organization of the Petroleum Export-
ing Countries (OPEC) and non-OPEC oil production giant Russia would agree to continue their production cut deal seeking to drive
prices higher. OPEC and non-OPEC producers including Russia agreed late last year to cut output by almost 1.8 million barrels per day
(bpd) during the first half of the year in order to rein in a global supply overhang and prop up prices.

RECOMMENDATION : BUY CRUDE @ 3200 SL 3080 TGT 3340-3420 BUY NAT.GAS @ 202 SL 196 TGT 208-215

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Commodity Corner
Forex Corner
Market Recap :

The Indian rupee on Monday weakened against

the US dollar, after local equity markets fell for the
third consecutive session.

The 10-year bond yield was trading at 6.858%

compared to its previous close of 6.821%. Bond
yields and prices move in opposite directions.

The dollar index, which measures the US cur-

rencys strength against major currencies, was
trading at 101.30, up 0.12% from its previous
close of 101.18.

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 64.50-64.40 with SL of 65.20 for target of
64.10-64.00.

USD/INR
Level S2 S1 CP R1 R2 High Low Close
USD/INR 63.06 64.04 64.69 65.07 65.72 65.35 64.32 64.41

EUR/INR
Level S2 S1 CP R1 R2 High Low Close
EUR/INR 67.61 68.08 68.97 69.44 70.33 69.86 68.50 68.55

GBP/INR
Level S2 S1 CP R1 R2 High Low Close
GBP/INR 78.89 79.49 80.60 81.20 81.31 81.71 80.00 80.09

JPY/INR
Level S2 S1 CP R1 R2 High Low Close
JPY/INR 57.55 57.89 58.53 58.87 59.51 59.18 58.18 58.24

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J Street Recommendations Report Card

Nifty last week opened at 9220.60, attained a high at 9273.90 and fell to a low of 9188.10. Nifty finally closed the week at
9198.30 thereby showed a net rise of 0.27% on week to week basis. In near term lower range of 9166-9134 to be tested. Further
rise will continue above 9274 closing. Traders can buy on breakout and close above 9273 with low of the week as the stop loss or
9188 whichever is lower at the time of rise above 9273.

Top Fundamental Stocks

Absolute
Stocks Rec. Date CMP on Rec. CMP Target Return @ Status
CMP
Petronet 20/02/2017 400 410 490 2% Buy

Escorts 06/02/2017 383 536 590 40% Buy

Edelweiss financial 16/01/2015 117 180 175 54% Accumulate

IOC Ltd 27/02/2017 376 409 470 9% Accumulate

Marico 20/02/2016 255 303 340 19% Buy

Voltamp transformer 13/02/2017 925 1200 1120 30% Buy

Mothersumi 03/04/2017 376 381 440 1% Buy

Lic hsg Finc 27/03/2017 608 627 720 3% Accumulate

Asian Paints 10/03/2017 1030 1072 1180 4% Accumulate
Nbcc india 20/03/2017 175 180 210 3% Buy
Alembic Pharmaceuti-
30/08/2016 630 619 732 -2% Buy
cals
Wonderla 25/04/2016 387 393 498 2% Buy

Mold Tek Pack 04/04/2016 49 53 179 8% Buy

Welspun syntex/AYM 23/11/2015 121 81 223 -33% Buy

Ahluwalia contracts 24/08/2015 235 340 368 45% Profit Book

Infinite Computer Sol. 20/07/2015 190 228 255 20% Profit Book
Sadbhav Engineering
04/05/2015 298 315 430 6% Buy
Ltd.
Omkar speciality
16/03/2015 152 158 251 4% Buy
Chemicals
DHFL 16/02/2015 252 385 368 53% Profit Book
M&M 12/01/2015 1238 1271 1450 3% Buy
PTC India Fin. Ser. 07/07/2014 39 46 45 18% Profit book
If you buy the things you don't need, soon you need to sell those things you need.

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J Street Short Term Call Status

Sr. BUY/ TRIGGER %
No.
DATE STOCK RANGE RANGE TGT SL STATUS
SELL PRICE RETURN
1 20-Feb-17 L&TFIN BUY 115 117 116.00 122.00 112 TA 4.2
2 21-Feb-17 HEXAWARE BUY 212 216 214.00 225.00 206 TA 4.2
3 22-Feb-17 DISHTV BUY 92 94 93.00 98.50 88 TA 4
4 23-Feb-17 KTKBANK BUY 125 128 126.50 134.00 121 TA 4.2
5 28-Feb-17 BEML BUY 1330 1345 1337.50 1397.00 1296 EXPIRE .

6 1-Mar-17 ARVIND BUY 376 381 378.50 396.00 366 TA 4.2

7 2-Mar-17 M&M BUY 1340 1356 1348.00 1410.00 1298 SL -3.7
8 3-Mar-17 ULTRACEMCO BUY 3800 3840 3820.00 3990.00 3710 TA 4.4
9 6-Mar-17 TITAN BUY 434 441 437.50 457.00 423 TA 4.5
10 7-Mar-17 LICHSGFIN BUY 560 570 565.00 594.00 546 TA 5.1
11 8-Mar-17 COLPAL BUY 925 935 930.00 972.00 898 TA 4.6
12 9-Mar-17 ZEEL BUY 507 516 511.50 538.00 491 TA 4.2

13 10-Mar-17 UPL BUY 705 715 710.00 744.00 686 TA 4.1

14 14-Mar-17 JUBLFOOD BUY 1064 1080 1072.00 1127.00 1028 TA 4.4

NA-
15 15-Mar-17
TIONALALUM
BUY 72 73 72.50 81.00 66 EXPIRE .
16 16-Mar-17 JINDALPOLY BUY 348 352 350.00 386.00 315 TA 4.6
17 17-Mar-17 IBULHSGFIN BUY 940 954 947.00 1004.00 912 SL -3.7
18 20-Mar-17 HAVELLS BUY 438 444 441.00 460.00 425 TA 4.4

19 21-Mar-17 CUMMINSIND BUY 900 915 907.50 951.00 874 TA 4.6

20 22-Mar-17 GRASIM BUY 1078 1093 1085.50 1136.00 1044 SL -3.6
21 23-Mar-17 WIPRO BUY 495 523 509.00 523.00 481 SL -3.5

22 24-Mar-17 JETAIERWAYS BUY 476 483 479.50 502.00 461 TA 4.8

23 27-Mar-17 CUMMINSIND BUY 912 922 917.00 958.00 885 TA 4.8

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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 28-Mar-17 PETRONET BUY 402 410 406.00 428.00 388 OPEN .

25 29-Mar-17 ZEEL BUY 525 535 530.00 560.00 507 OPEN .

26 30-Mar-17 ASIANPAINT BUY 1060 1075 1067.50 1120.00 1028 OPEN .

27 3-Apr-17 LT BUY 1565 1580 1572.50 1640.00 1535 TA 4.6

28 5-Apr-17 JISLJALEQS BUY 98 100 99.00 106.00 94 OPEN .

29 6-Apr-17 MOTHERSUMI BUY 378 382 380.00 398.00 366 OPEN .

30 7-Apr-17 CADILAHC BUY 446 453 449.50 472.00 432 OPEN .

STATUS CALLS RATIO

TA+PB 18 81.81

SL+EXIT 04 18.19

TOTAL 22 100.00

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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