Driven by volume growth in the US and Asia-Pacific region, and better pricing, HCL Technologies reported a 16.3 per cent rise in its net income at Rs 332.9 crore for the second quarter ending 31 December, 2007 as compared to Rs 286.2 crore posted in the corresponding quarter of the previous financial year.
For the same period, its revenues stood at Rs 1,816.6 crore -- up 24 per cent from Rs 1465.1 crore reported last year. On a sequential (quarter-on-quarter) basis, the company recorded a 7.9 per cent growth in net income from Rs 308.4 crore in the trailing quarter. Meanwhile, HCL also reported a 6.3 per cent q-o-q growth in revenues from Rs 1709.2 crore in the previous quarter.
"Our growth this quarter has been driven by our business from Europe and Asia," said Vineet Nayar, CEO, HCL Technologies. "A 6.6 per cent growth in volumes and 1.7 per cent growth through better realistion like higher billing, also helped us to record a 7.4 per cent rise (in dollar terms) in revenues this year," he added.
The core IT services (core software and infra structure services) of the company rose 29.4 percent to reach Rs 1,598.2 crore during the quarter as against Rs 1,279.2 crore in the corresponding quarter in the previous fiscal. While sequentially it grew 7.3 per cent compared to Rs 1,489.5 in the previous quarter.
Meanwhile, the outsourcing arm of the company (HCL BPO) raked in revenues amounting to Rs 219.8 crore -- up 17.5 per cent as compared to Rs 185.9 crore in the previous year. On the sequential basis however, the company witness a 0.6 per cent decline in revenues from 218.4 per cent. "The September-December quarter is usually slow, given the loss of working days due to the festive season," explains N Ranjit, President and CEO, HCL, BPO. The company also lost business of a large US telecom company, due to its withdrawal from India.
Among its service Lines, infrastructure services, engineering & R&D services (ERS) and custom application services witnessed accelerated growth. Continuing the trend of the last two quarters, the fastest growth among verticals was recorded in Life Sciences, financial services and telecom.
During the quarter under review, the company added 2312 to its head count to take its employee strength to 48,000.
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.
No comments:
Post a Comment