Expected to invest around Rs 1,000 crore over four years
After achieving a production capacity of 6,00,000 tonnes of polyester staple fibre, filament yarns, textured yarns and textile grade chips at its Butibori plant in Nagpur, Indo Rama Synthetics (IRSL) is eyeing an increase in its manufacturing capacity.
The company is planning to set up a new purified terephthalic acid (PTA) plant near Mangalore and is planning to bid for bigger power projects.
In an exclusive interaction with Business Standard, IRSL chairman and managing director O P Lohia said, “As ONGC, IOC and MRPL are planning to set up a paraxylene plant in Mangalore, PTA, which is a raw material for manufacturing polyester and a by-product of paraxylene, will be available in plenty. So, it would be wise to set up a manufacturing facility there.”
With Oil and Natural Gas Corporation, Indian Oil Corporation and Mangalore Refinery and Petrochemicals setting up paraxylene plants in Mangalore, the city will become a petro-chemical hub in five years.
Lohia pointed out that it will be unviable to open a small-sized PTA plant. IRSL will thus establish a plant with an annual polyester manufacturing capacity of 2,00,000-3,00,000 tonnes.
The company is expected to invest around Rs 1,000 crore for setting up the PTA plant over a period of four years, company sources said. The valuation of IRSL is over Rs 2,000 crore, according to current estimates.
Lohia refrained from disclosing the name of the partner for setting up the PTA plant near Mangalore. “We are waiting for the state government to assume office in Karnataka so that we get the clearance”, Lohia said.
The company is also planning to venture into the power sector in a move towards diversification. IRSL has set up a coal-based power station with a capacity of 100 mw at an investment of around Rs 140 crore near Nagpur.
Some portion of the power is sold to Maharashtra State Electricity Board to meet the power supply requirements in the region.
Lohia said, “As we are experienced in developing and running a power plant, we are planning to enter the power generation sector.”
The company is also looking for a coal mine around Nagpur, so as to maintain the coal supply to its power plant.
The company has also submitted bids for setting up a power plant in the Vidarbha region. It, however, declined to provide details regarding the bid.
Source - Business Standard
Understanding Short Term Trading
Before I begin, this blog is not for intraday traders. My definition of short term implies duration of around 2 to 3 months.
Short Term stock picking is no rocket science, but rather a visual interpretation of technical charts. A basic moving average on a time frame chart will show the direction of the securities movement.
Moving averages is a mathematical results calculated by averaging a number of past data points. Moving averages (MA) in it's basic form is calculated by taking the arithmetic mean of a given set of values on a rolling window of timeframe. Once the value of MA has been calculated, they are plotted onto a chart and then connected to create a moving average line. Typical moving averages used for short term trading are 50 MA and 100 MA.
Types of Moving Averages
1) Simple Moving Average (SMA)
SMA is calculated by taking the arithmetic mean of a given set of values on a rolling window of timeframe. The usefulness of the SMA is limited because each point in the data series is weighted the same, regardless of where it occurs in the sequence. Critics argue that the most recent data is more significant than the older data and should have a greater influence on the final result.
2) Exponential Moving Average (EMA)
EMA overcomes the limits of SMA, where more weight is given to the recent prices in an attempt to make it more responsive to new information. When calculating the first point of the EMA, we may notice that there is no value available to use as the previous EMA. This small problem can be solved by starting the calculation with a simple moving average and continuing on with calculating the EMA.
The primary functions of a moving average is to identify trends and reversals, measure the strength of an asset's momentum and determine potential areas where an asset will find support or resistance. Moving averages are lagging indicator, which means they do not predict new trend, but confirm trends once they have been established.
A stock is deemed to be in an uptrend when the price is above a moving average and the average is sloping upward. Conversely, a trader will use a price below a downward sloping average to confirm a downtrend. Many traders will only consider holding a long position in an asset when the price is trading above a moving average.
In general, short-term momentum can be gauged by looking at moving averages that focus on time periods of 50 days or less. Looking at moving averages that are created with a period of 50 to 100 days is generally regarded as a good measure of medium-term momentum. Finally, any moving average that uses 100 days or more in the calculation can be used as a measure of long-term momentum.
Support, resistence and stoploss can be infered by referring the closet MA below or above the market price. The other factor that is used in short term momentum is the trading volume. The moving averages along with the trading volume can provide a better insight to short term movement.
Markets are moved by their largest participants - I believe this is the single most important principle in short-term trading. Accordingly, I track the presence of large traders by determining how much volume is in the market and how that compares to average. Because volume correlates very highly with volatility, the market's relative volume helps you determine the amount of movement likely at any given time frame--and it helps you handicap the odds of trending vs. remaining slow and range bound.
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