The Dubai-based company will enter port, aviation sectors to cash in on the boom.
ETA Star, one of Dubai’s household names, will invest more than $1 billion in India to cash in on booming sectors such as ports and aviation. This will be in addition to other combined investments committed by the company in the power and real estate sectors, which total more than Rs 9,000 crore.
The diversified group is likely to invest Rs 4,000-4,500 crore in the development of a port in Tamil Nadu. The company is already believed to be in final stages of selecting the required site. A study is underway for the same.
The project will be executed through a special purpose vehicle (SPV) that may be formed in the next 7-8 months. The proposal of naming the SPV as ETA Star Ports is currently thought about.
However, it will form a part of the ETA Star umbrella in India, which also has business interest in areas such as real estate, power, engineering and shipping lines.
Hameed Salahuddin, director, ETA Star, said, “We will finalise our plans for the ports venture after the bathymetry study is drafted, which is underway. We will convey our intentions to the Tamil Nadu government shortly.”
The port will look to handle shipments of coal so as to serve a number of power projects which are coming up within the state. It will also handle a sizeable number of automobile export and import as auto facilities of Hyundai, Ford and Ashok Leyland, among others, are based in the vicinity.
Star Aviation, the Chennai-based private airline firm of the ETA group, is looking to start commercial flight operations in June-July this year, after it received the civil aviation ministry’s permission in December.
The airline aims to first launch itself as a regional carrier in the southern market, connecting cities such as Visakapatanam, Coimbatore and Madurai as also metros such as Chennai, Bangalore, Kochi and Hyderabad.
The company will start operations with 3-4 leased and 2 owned Airbus with single class configuration. Company officials claim that the airline will operate in an all-economy class, on the lines of another southern carrier Paramount Airways.
The group’s plan is to make air travel affordable for the local people, without becoming an all out budget carrier.
Salahuddin added, “There is a huge demand from people of tier-II and tier-III cities in India for air travel. These people have the money to go the distance, but as there is no availability of services from existing airlines, we will bridge that gap and explore the market.”
The company aims to aggressively explore the possibility of having a pan-India presence in due course. This will happen through induction of more aircraft and increase in the number of connecting routes.
The company is also awaiting a clear mandate from the government on rules for starting international operations.
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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