Market Investor Guide Indra Guna: UPDATE on GUJ NRE COKE:

GUJNRECOKE we hold in our Fabulous-15 as investment for Target of Rs.110- India could face a ‘coal shock’ sooner than later

International coking coal prices are forecast to climb upto $200 per MT due to bad weather & tight lending practice in China http://www.coalexplorer.com/20102002/international-coking-coal-prices-are-forecast-climb-upto-200-mt-due-bad-weather-tight-lendi?utm_source=www.coalexplorer.com&utm_medium=email&utm_campaign=Coal+Explorer+Newsletter+Feb+21,+2010

China’s coal demand has overtaken its domestic production, forcing the world’s largest coal producer to import coal. Till 2006, China was a net exporter of coal.

The global coal production in 2008 was 6.8 billion tonne while consumption stood at 6.7 billion tonne. China produced 43% of the world’s coal. So there is a clear risk that if a big coal consumer like India suddenly enters the world market, it could send international coal prices soaring.

http://www.business-standard.com/india/news/australia-scouts-for-indian-investment-in-coking-coal-sector/86121/on Australia expects to gain on India's appetite for coking coal considering the projections in the steel sector, which indicates an upward trend, a top official from New South Wales said.

Gujarat NRE, India's premier mining and coke making company, has already invested and achieved production of around 1.5 million tones per annum (MTPA) of coking coal in the Australia.

"It (Gujarat NRE) has significantly imported coking coal from Australia and 2012 predictions indicate that the major investment would be from them," he said.

Mullard, who represented the Australian government at the Conference, said Gujarat NRE has been undertaking significant expansion which will further upswing the overall coking coal exports to India.

The statistics by Ahmedabad-based company reveals that the production in Australia is expected to rise to 6 million tonnes per annum (MTPA) in about 3-4 years.

"The company has already invested around 300 million Australian dollars with plans to further invest 500 million Australian dollars for the development of Australian mines," Gujarat NRE company spokesman said at the steel conference.

Technical view: This stock has been in rising channel in almost 31weeks and has taken channel support @Rs.66 to reverse back and now Resistance comes near Rs.105 in near term if market sentiment is supportive.