Vol.

: 304
25th July,2016

Index

MarketView
1 Market View
Abundant liquidity with hope for economic recovery is driving the market

CompanyUpdate
2 As we have discussed during last two months, there are certain triggers for the market to sustain and go

up. Expectations of good monsoon, passing of GST and other reforms, earnings improvement and rate
Aroundthe
cut hope are the four triggers driving the market. But the biggest trigger emerged after BREXIT is the
Economy

3 availability of abundant liquidity in the world to be invested in emerging markets. As we have witnessed

that the economic slump and the fear of slow down after BREXIT, many developed countries has
KnowledgeCorner 3 lowered their interest rates either to zero or negative territory. The consequences of this event have
direct effect on the bond yields world over. Very low bond yield pushed the global investors to withdraw

MutualFund
4 money from debt market. This liquidity has created appetite for equity and particularly emerging market
equity. As we have seen the FIIs are regularly purchasing Indian equity since the event of BREXIT. The

liquidity coupled with sound fundamentals and expectations of good earnings and economic recovery
CommodityCorner5
has pushed the market to this level. Any rise above the resistance level of 8600-8660 can take the

market to new highs. Strong support is visible at 8460-8340. But it is important at this time to remain
ForexCorner
6 selective in stock picking.

ReportCard
7

Kamal Jhaveri
ShortTermCallStatus8 M D - J h a v e r i S e c u r i t i e s

Editor&Contributor
MargiShah

SpecialContributors
AsheshTrivedi
AdityaNahar

Forsuggestions,feedback
andqueries
jstreet@jhaveritrade.com

-1-

Vol.: 304
25th July,2016

Company Update : Coromandel International Ltd.

Financial Basics

Company Basics
BSE Code
NSE Symbol
EQUITY (` in Cr.)
MKT.CAP (` in Cr.)

506395

FV (`)
EPS (`) (TTM)

1.00
11.81

COROMANDEL

P/E (x) (TTM)

20.29

P/BV (x) (TTM)

BETA
RONW (%)

2.88
0.6040
15.90

29.14
6984.20

Share Holding Pattern

Holder's Name
Foreign
Institutions
Promoters
Non. Promoters
Public & Others
Govt Holding

% Holding
6.33
9.47
62.10
0.00
13.16
8.95

Valuation : COROMANDEL is trading at `235. We recommend Buy with target price of `308, valuing stocks
17.5xFY19E EPS of `17.61.The stock currently trades at 18x of FY17E, 15.65x of FY18E and 13.61x of FY19E.
Company Overview

Coromandel is a flagship company of the Murugappa Group and is a subsidiary of E.I.D. Parry (India) Limited
(EIDP) which holds 60.81% of the equity share capital in the Company. The Company is engaged in the business
of farm inputs comprising of Fertilisers, Crop protection, Specialty Nutrients and Organic compost.
Investment rational
Pioneer in introducing and promoting the concept of Crop Specialty Nutrition in India
With its presence across water Soluble fertilizers, Sulphur products and Micro Nutrients segments, Coromandel ranks
among the market leader, providing crop specific solutions and quality agri inputs to the farming community. Government
introduced number of measures ranging from micro irrigation, balanced crop nutrition and soil health awareness which
bodes well with business objectives. Though the adverse seasonal conditions impacted the industrys performance in 201516, the segment continues to offer attractive growth opportunities.
Leader in the complex fertilizer segment
Coromandel has further fortified its leadership position in the Complex fertilizer segment, by enhancing its market share
from 23% in 2013-14 to 26% in 2014-15. It is now the market leader in Complex segment. The overall market share in
Phosphatics segment improved from 16.0 to 16.3% with a healthy volume growth of 15% over last year. Coromandel has
been at the forefront of providing unique farming solutions since its inception in 1961.

Improving quality perception and positioning of Single Super Phosphate (SSP)

With the integration of erstwhile Liberty Phosphate, Coromandels SSP Business will focus on brand and product
differentiation by providing value added offering to the customers. During FY15, SSP Business engaged in brand
building initiatives for integrating Double Horse brand with Gromor through mass media campaigns. The SSP
Business has enhanced its raw material procurement efficiency by tying up rock and acid sources.

- 2-

Vol.:
304
25th July,2016

Around The World

Weekly Market Recap :

The global credit rating agency Fitch Ratings said on Monday, 18 July 2016, affirmed India's Long-Term Foreign- and
Local-Currency Issuer Default Ratings at 'BBB-'. The outlook on the rating is stable.
On the global front, data released on Tuesday, 19 July 2016, showed that US housing starts rose 4.8% in June, a sign of
steady improvement in the market for newly constructed homes.
The European Central Bank (ECB) held rates unchanged after a monetary policy review on Thursday, 21 July 2016, and
emphasized that it intends to keep rates at current or lower levels for an extended period and that its program of
monthly bond buys would run until at least March 2017, and possibly beyond.

Market Eye Week ahead :

The global credit rating agency Fitch Ratings said on Monday, 18 July 2016, affirmed India's Long-Term Foreign- and Local-Currency Issuer Default Ratings at 'BBB-'. The outlook on the rating is stable.
On the global front, data released on Tuesday, 19 July 2016, showed that US housing starts rose 4.8% in June, a sign of
steady improvement in the market for newly constructed homes.
The European Central Bank (ECB) held rates unchanged after a monetary policy review on Thursday, 21 July 2016, and
emphasized that it intends to keep rates at current or lower levels for an extended period and that its program of monthly
bond buys would run until at least March 2017, and possibly beyond.

Key Events / Factors to Watch

1. Mon : Canara Bank, Eveready Industries, Texmaco rail, Hitachi home, KPR Mill, JK paper, NELCO, Tata sponge,
Navin Flourine earnings

2. Tue : ACC, Ambuja cement, Ajanta Pharma, Zee entertain, Dr Reddys Labs, Bharti Infratel, Godrej Consumer , IDFC Bank,
United Spirits, Symphony, Maruti Suzuki, Tata Elxsi, TVS Motor earnings

3. Wed : Agro Tech Foods , Asian Paints , Bajaj Auto, Bharti Airtel ,HDFC, Dabur India, JSW steel, Torrent Pharma , Yes bank,
Torrent Pharma, Castrol earnings

4. Thu : Blue dart, Dish TV, Eicher Motors, Escorts, FAG bearings,GSFC, Muthoot Finance, HCC, Supreme industries, Ajmera
realty, Mahindra Lifespace earnings

5. Fri : Alembic Pharma, Vedanta, UPL, Dr. Lal Path Lab, Astra Microwave, ICICI Bank , Indoco Remedies, kansai Nerolac, KEC
international, L&T, Nestle, PVR, SPARC earnings

6. Sat : Aym Syntex, Force Motors, JSW Holdings, Onmobile Global, Relaxo Footwear earnings

Knowledge Corner :
Securities Transaction Tax

STT is a kind of turnover tax where the investor has to pay a small tax on the total consideration paid or received in a share
transaction.
The STT applicable in the case of intraday transaction will be different from the one applicable in the case of delivery transaction.
Likewise, the STT applicable in the case of buying a security will be different from the one applicable in the case of selling the
security.
STT will be applicable in the case of transaction that takes place in the exchanges. For availing the exemption in the case of long-term
capital gain, the asset under consideration has to be subjected to STT.

- 3-

Vol.: 304
25th July,2016

Mutual Fund Corner

Top 10 Sector Break-Ups

Fund Name
Birla Sun Life Equity Fund

AMC

Birla Sun Life Asset Management Company Ltd

Type

Multi Cap

Category
Launch Date

Financial
Healthcare

30.21
11.5

Automobile

9.52

FMCG

6.75

Open-ended and Equity

Technology

6.07

August 1998

Energy

5.52

Chemicals

5.23

Construction

3.4

Communication

3.14

Metals

3.1

Fund Manager

Anil Shah

Net Assets
(` In crore )

Birla Sun Life Equity Fund

History

2013

2014

2015

2016

295.48

462.75

476.32

531.84

Total Return (%)

7.11

56.61

2.93

11.66

+/-Nifty 50

0.35

25.22

6.99

4.17

+/- S&P BSE 500

2.73

21.14

4.41

3.87

28/73

20/145

82/187

8/155

52 Week High (Rs)

295.48

473.60

510.16

531.84

52 Week Low (Rs)

230.76

281.06

454.24

411.84

Net Assets (Rs.Cr)

642.84

1574.97

2391.55

2421.52

Expense Ratio (%)

2.69

NAV (Rs)

Rank (Fund/Category)

Fund (%)

Sector Weights

Scheme Name

2.56

2.28

Risk Analysis
Volatility Measures
Standard Deviation

17.63

Sharpe Ratio

1.12

Beta

1.06
0.84

R-Squared
Alpha

11.46

Composition (%)
Equity

94.31

Debt

0.00

Cash

5.69

Fund Performance v/s S&P CNX Nifty

Fund Style
Investment Style
Growth

Blend

Value

Medium
Small

Fund
CNX Nify
(Rebased to 10,000)
- 4-

Capitalization

Large

Source : - www.valueresearchonline.com

Vol.: 304
25th July,2016

Commodity Corner
BULLION
FUNDAMENTAL: Last week, bullion prices dropped reflecting tension between a global backdrop of easier interest rates and the chance of U.S. monetary policy being tightened before the end of the year. The U.S. Federal Reserve may wait until the fourth quarter before raising interest rates, probably
in December after the presidential election. Bullion has benefited significantly - hitting its highest in two years this month - as central banks from Europe
to Japan keep policy looser for longer, which neutralises the opportunity cost of holding an asset that does not pay interest. But the dollar has gained on
strong U.S. data, boosting bets the Fed will raise U.S. rates by year-end. Friday's U.S. manufacturing PMI numbers reflected the trend - the employment index hit the highest since July last year. The U.S. Federal Reserve will wait until the fourth quarter before raising interest rates, probably in December after the presidential election. The European Central Bank, meanwhile, held rates at record lows as it seeks to revive growth and inflation with
cheap credit to the economy. It left the door open to more policy stimulus, highlighting great uncertainty and abundant risks to the economic outlook.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.22 percent to 963.14 tonnes. Gold demand in Asia continued
to underwhelm this week, but a dip in global prices over the past couple of weeks raised expectations of buying in the coming days alongside keeping a
lid on selling by consumers. The safe-haven asset, which has risen over 25 percent so far this year and has been one of the top-performing commodities, is on course for its second straight weekly decline after falling over 2 percent last week. Dealers were offering a discount up to $40 per ounce to
the global spot benchmark, down from last week's discounts of up to $60. The December quarter usually accounts for about a third of India's gold sales
as it takes in the start of the wedding season as well as festivals like Dhanteras and Diwali, when buying gold is considered auspicious. Premiums in
Singapore were unchanged from last week at 60 cents, while Hong Kong prices were at a discount of 30-80 cents, versus a premium of 30-50 cents the
week before.
RECOMMENDATION : BUY GOLD @ 30400 SL 29600 TGT 31200-31800. BUY SILVER @ 45000 SL 43800 TGT 46500-47500.

BASE METALS
FUNDAMENTAL: Base metals prices last week ended with mixed node where zinc prices gained by over two percent followed by around one and half
percent gains in nickel prices while others ended with losses as pressure came as stronger dollar knocked prices. Zinc gained as a drop in global zinc
mine supply has squeezed production, helping zinc prices to jump more than 7 percent so far this month. Stronger demand in China has come just as
zinc face potential supply shortages. A series of mine shutdowns and closures last year have led to demand outstripping supply. In one of the biggest
moves Glencore idled 500,000 tonnes of annual production. The global zinc market deficit was 68,700 tonnes in the first five months of the year, according to the International Lead and Zinc Study Group. That compares with a supply surplus of 177,000 tons in the same period last year. The worldwide zinc market has recorded deficit during January to May this year. This is after recording a surplus during the entire year 2015. As per WBMS data,
the global zinc market recorded deficit of 52 kt during the initial five months of the year from January to May. Nickel prices has been the top performer
on the LME since June 1, surging 23 percent, boosted by concerns the Philippines will intensify a crackdown on mining companies that do not meet
environmental standards, potentially putting at risk supply from the worlds' top exporter of nickel ore. China's economic growth is expected to cool to 6.5
percent this year - the low end of Bei jing's target range - even as the government steps up spending and the central bank loosens policy further to prevent a sharper slowdown. Global nickel market ended in deficit of 42,600 tonnes in January-May 2016 with apparent demand exceeding production.
The calculated full year surplus had stood at 45.0 kt during the whole year 2015, according to WBMS. The global copper market has recorded a deficit
of 48,000 tonnes during January to May this year. It must be noted that the worldwide copper market had reported a surplus of 373,000 tonnes for the
entire year 2015. The global mine production during the period from January to May this year totaled 8.14 million tonnes. The mine production has
grown by 4.8% when matched with the corresponding five-month period in 2015. The first half of 2016 was a strong one for Chinas copper imports,
which are estimated to have reached a total 4,671kt, a rise of 22 percent year-on-year.
RECOMMENDATION : BUY COPPER @ 328 SL 320 TGT 340-345. SELL ZINC BELOW 150 SL 156 TGT 142-136. SELL NICKEL @ 715 SL 740
TGT 690-660. SELL ALUMINIUM @ 109 SL 112 TGT 106-104. BUY LEAD @ 122 SL 119 TGT 125-128

ENERGY
FUNDAMENTAL : Crude oil prices on weekly basis ended with around 6 percent as the U.S. heads to the end of the summer-driving season with
ample inventories. Pressure also seen after the fourth weekly rise in the U.S. oil rig count added to worries about a global crude glut. U.S. crude and
gasoline supplies are at the highest seasonal levels in at least two decades, government data show. Record June demand of the fuel wasnt enough to
make a dent in stockpiles that ended the month at the highest since 1984 for this time of year, the American Petroleum Institute said. The summer
driving season ends Sept. 5 on Labor Day. Oil also slipped as the dollar rose to a more than seven-week high. While American crude stockpiles slid for
a record ninth week through July 15, they still remain more than 100 million barrels above the five-year average. Rigs engaged in exploration and
production in the US rose for the fourth straight week, data showed. According to oilfield services company Baker Hughes, the number of oil rigs drilling
rose by 14 to 371 in the week ended July 22. In the previous period, the gauge rose by 6 to 357 rigs. Natural gas prices gained on weekly basis as
forecasts show oppressive heat in the central U.S. spreading to the East Coast. Temperatures may be above normal across most of the contiguous
U.S. next week, with much of the hot weather concentrated in the Mid-Atlantic, MDA Weather Services said. Gas rebounded in spring and early
summer, reaching a 13-month high near $3 per million British thermal units July 1 before cooler weather curtailed demand for the power-plant fuel.
While gas stockpiles are at a surplus to normal levels, intense heat has helped to erode the glut. The natural-gas market is oversupplied due to robust
production and sluggish demand during a warm winter. Some expect that stockpiles of the fuel could hit records later this year. Total U.S. natural gas
storage stood at 3.277 trillion cubic feet, 14.4% higher than levels at this time a year ago and 17.1% above the five-year average for this time of year.
Unless intense summer heat boosts demand from power plants, stockpiles will test physical storage limits of 4.3 trillion cubic feet at the end of October.
RECOMMENDATION : BUY CRUDE OIL @ 2920 SL 2800 TGT 3050-3150. BUY NATURAL GAS @ 183 SL 175 TGT 190-195.

- 5-

Vol.: 304
25th July,2016

Commodity Corner

Forex Corner

Market Recap :

The Indian rupee on Monday weakened to over

two-week low against the US dollar, as the mood
turned cautious ahead of policy meetings of key
global central banks scheduled later this week.

The home currency was trading at 67.28, down

0.31%, its steepest fall since 24 June, from its
previous close of 67.08.

The local currency opened at 67.18 a dollar and

touched a low of 67.33, a level last seen on 8 July.

The dollar index, which measures the US currencys

strength against major currencies, was trading at
97.371, down 0.1% from its previous close of
97.467.

Market Eye Week ahead :

The USDINR has retested the breakdown trend line at 67.20 levels on daily chart. Moreover, price have been trading
below its 25 daily exponential moving average which suggest near term trend under pressure. So any rally in the prices
towards 67.25 level, used as selling opportunity. A momentum indicator RSI has moved below 45 levels on daily chart,
which suggest bearishness in the prices. A momentum indictor MACD has given negative crossover on 4 hourly chart,
which gives negative confirmation to the prices. For now we expect prices to move lower towards 66.75 levels in few
trading sessions.

USD/INR
Level

S2

S1

CP

R1

R2

High

Low

Close

USD/INR

66.94

67.03

67.17

67.26

67.40

67.32

67.09

67.11

Level

S2

S1

CP

R1

R2

High

Low

Close

EUR/INR

73.51

73.74

74.16

74.39

74.81

74.58

73.93

73.97

Level

S2

S1

CP

R1

R2

High

Low

Close

GBP/INR

86.86

87.38

88.34

88.86

89.82

89.30

87.82

87.90

Level

S2

S1

CP

R1

R2

High

Low

Close

JPY/INR

92.14

62.70

63.28

63.84

64.42

63.85

62.71

63.28

EUR/INR

GBP/INR

JPY/INR

-- 46--

Vol.: 304
25th July,2016

J Street Recommendations Report Card

Nifty last week opened at 8541.40, attained a low at 8407.04 and moved up to 8594.79. Nifty finally closed the week at 8541.40
thereby showed net rise of 218 points on week to week basis, The low registered last week was 8476 and the buy range was 85148434. The weekly close was at 8541. Traders who managed to implement buying in the range 85414-8434 had the opportunity to
benefit. Traders long and holding the same can maintain the stop loss at 7927. Resistance is at 8587-8594-8655. Further rally will
continue on breakout and close above 8655. Traders can buy above 8655 with low of the week as the stop loss or 8476. Further rally
can continue on rise and close above 8655. The next lower tops are 8655, 8844 and the top 9119.

Top Fundamental Stocks

Rec. Date

CMP on Rec.

CMP

Target

Absolute
Return @
CMP

Status

Coromandel
International

25/07/2016

235

235

308

0%

Buy

Capital First

06/06/2016

552

670

660

20%

Profit book

Wonderla Holidays

25/04/2016

387

404

498

29%

Accumulate

Mold-Tek Packaging

04/04/2016

138

200

179

30%

Buy

Jamna Auto

22/02/2016

133

175

181

36%

Buy

MT Educare

01/02/2016

164

153

230

40%

Buy

Garware-Wall Ropes

28/12/2015

425

437

550

29%

Buy

AYM Syntax

23/11/2015

121

96

223

84%

Buy

Natco Pharma

02/11/2015

509

601

636

525%

Buy

SRF

21/09/2015

1140

1388

1374

21%

Buy

Ahluwalia contracts

24/08/2015

235

291

368

57%

Buy

20/07/2015

190

206

255

34%

Buy

04/05/2015

298

301

430

44%

Buy

16/03/2015

152

145

251

65%

Buy

DHFL

16/02/2015

252

225

368

46%

Accumulate

TV Today Network

27/01/2015

222

299

337

52%

Buy

M&M

12/01/2015

1238

1460

1452

17%

Buy

Havells India

27/10/2014

274

381

346

26%

Buy

PTC India Fin. Ser.

07/07/2014

39

42

45

15%

Buy

Adani Port

05/07/2014

280

226

347

24%

Accumulate

Stocks

Infinite Computer
Sol.
Sadbhav
Engineering Ltd.
Omkar speciality
Chemicals

It'snotimportantwhetheryouarerightorwrong,Itsabouthowmuchmoneyyoumakewhenyou'rerightandhow
muchyoulosewhenyou'rewrong.
- 7-

Vol.: 304
25th July,2016

J Street Short Term Call Status

Sr.
No.

DATE

8Jun16

9Jun16

SIEMENS

10Jun16

STOCK

BUY/
SELL

RANGE

TRIGGER
TGT
PRICE

SL

STATUS

%
RETURN

3310

3370 3340.00 3520

3240

SL

3.0

BUY

1251

1275 1263.00 1330

1225

EXPIRE

0.0

SIEMENS

BUY

1240

1265 1252.50 1330.00

1200

EXPIRE

0.0

13Jun16

LUPIN

SELL

1430

1460 1445.00 1400.00

1370

SL

3.00

14Jun16

YESBANK

BUY

1054

1080 1067.00 1130

1030

TA

4.30

15Jun16

VOLTAS

BUY

327

333

340

318

EXPIRE

0.0

16Jun16

HDFCBANK

BUY

1150

1170 1160.00 1220

1135

EXPIRE

0.0

17Jun16

VEDL

BUY

121

124

118

TA

4.20

20Jun16

GODREJCP

BUY

1518

1548 1533.00 1580.00

1480

TA

3.50

10

21Jun16

GODREJIND

BUY

367

373

370.00 380.00

358

TA

3.70

11

22Jun16

BANKINDIA

BUY

95

97

96.00

92

TA

4.10

12

23Jun16

HDFC

BUY

1228

1252 1240.00 1275.00

1200

OPEN

0.0

13

24Jun16

BAJAJAUTO

BUY

2654

2705 2679.50 2750.00

2600

TA

3.00

14

27Jun16

BAJAJAUTO

BUY

2654

2705 2750.00 2810.00

2600

TA

3.00

15

28Jun16

ULTRACEMCO BUY

3365

3433 3500.00 3565.00

3300

OPEN

0.0

16

29Jun16

BRITANNIA

SELL

2723

2777

2680 2663.00

2830

SL

3.60

17

30Jun16

SKSMICRO

BUY

725

745

760.00 775.00

705

TA

5.00

18

4Jul16

LT

BUY

1525

1555 1540.00 1615.00

1485

TA

3.20

19

5Jul16

ICICIBANK

BUY

245

250

247.50 262.00

236

TA

5.50

20

7Jul16

RELINFRA

BUY

565

575

570.00 597.00

550

EXPIRE

0.0

21

8Jul16

DRREDDY

BUY

3500

3550 3525.00 3700.00

3400

EXPIRE

0.0

22

11Jul16

ASIANPAINT BUY

1005

1025 1015.00 1065.00

975

TA

4.80

23

12Jul16

232

238

224

TA

5.50

- 7-

ULTRACEMCO BUY

RANGE

CANBK

BUY

330.00

122.50

126

100.00

235.00 248.00

Vol.: 304
25th July,2016

J Street Short Term Call Status

Sr.
No.

DATE

STOCK

BUY/
SELL

RANGE

STATUS

CMP

%
RETURN

24

13Jul16

VEDL

BUY

158

162

160.00 169.00

154

TA

5.60

25

14Jul16

GAIL

BUY

387

394

390.50 400.00

375

TA

3.80

26

15Jul16

BANKBARODA BUY

160

166

163.00 170.00

156

EXPIRE

0.00

27

18Jul16

LICHSFGFIN

BUY

520

532

526.00 557.00

500

OPEN

0.00

28

19Jul16

BHARTIARTL SELL

365

359

362.00 346.00

375

OPEN

0.00

29

20Jul16

CUMMINSIND BUY

823

838

830.50 870.00

800

OPEN

0.00

30

21Jul16

SIEMENS

BUY

1329

1355 1342.00 1410.00

1300

OPEN

0.00

31

22Jul16

KSCL

SELL

405

395

417

OPEN

0.00

STAUTS

CALLS

RATIO

TA+PB

14

87.5

SL+EXIT

12.5

TOTAL

24

100

TRIGGER
TGT
PRICE

SL

400.00 380.00

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)

- 7-

Vol.: 304
25th July,2016