9am with Emkay: Sept 29

9am with Emkay

Contents

n        News clippings

n    Kuwait Petroleum Corporation (KPC) is likely to bid in the forthcoming round of New Exploration Licensing Policy (NELP) with state-owned ONGC. Kuwait Foreign Petroleum Exploration Company (KUFPEC), a subsidiary of KPC, will join ONGC in bidding for oil and gas blocks to be offered in the ninth round of NELP scheduled to be launched on October 15.

n    PSL has recently bagged orders worth Rs 5.65 billion. The new orders include an order worth Rs 2 billion from Indian Oil Corporation.

n    Sun Pharmaceutical Industries has announced that USFDA has granted a tentative approval for its Abbreviated New Drug Application (ANDA) to market a generic version of Sanofi Aventis`s Rilutek tablets 50 mg.

n    Aqua Logistics and its subsidiaries have bagged new contracts worth Rs 1.1 billion. The orders are from clients in pharma, heavy engineering and FMCG verticals for outsourcing and managing logistics.

n    Grindwell Norton has acquired about 20 acres of land in the state of Gujarat for setting up a manufacturing facility for its high performance refractories business. The estimated investment for this project is Rs 540 million and it is expected to be completed by end 2011.

n        Technical Comments

Support of 50-HSMA holds

After a weak opening, profit booking activity remained on the dominant side, until last sixty minutes, where Nifty managed to find support at the 50-hourly simple moving average (50-HSMA) and rebounded sharply to end the day on a flat note. Moreover, today’s price action depicts that a new bullish wave has just begun after a 2-day profit taking session. Hence, we suggest the market participant to ride this fresh leg of impulse upto the target of 6250.

BSE Realty:

After a gap up opening the Realty index managed to hold the bullish gap all through the day, which indicates that the upside momentum is still dominant. Moreover, today’s price action produced a positive crossover of 20- and 50-HSMA, which indicates that our short term target of 3950 will be witnessed shortly.