Customers of branded fuel – XtraPremium petrol and XtraMile diesel – from the Indian Oil Corporation Ltd (IOC) stable will now have to pay slightly more. With effect from midnight of January 3, IOC has raised the prices of its premium quality petrol by 20 paise per litre and diesel by 10 paise, which are at a minimum level.
This in effect would mean the branded petrol in Delhi will now cost Rs 1.70 more than the normal petrol (Rs 43.52 per litre) and premium quality diesel would be dearer by 50 paise from the normal (Rs 30.48 per litre).
“This price revision is at the minimum level. However, depending upon market conditions there is scope for revision in prices both upward and downward,” sources said. Public sector oil marketing companies have the freedom to revise prices of premium auto fuel brands without Government permission. However, despite this hike, the prices still remain lower than the rates at which private sector players Reliance Industries Ltd and Essar sell there products.
“Besides, these prices are lower than the desired increase in the retail selling prices due to soaring crude prices,” sources said.
RIL sells petrol at about Rs 50 per litre and diesel is about Rs 38 a litre in Uttar Pradesh, while Essar sells at a rate which is about Rs 4 to Rs 5 per litre higher than State-owned companies. RIL had increased the retail selling price of petrol and diesel by Rs 2.50 per litre effective January 1. Both Essar and RIL only sell premium fuel.
Speaking to Business Line a senior IOC official said, the sale of branded fuels has changed with dynamics of the market changing. “People are now willing to pay higher price for quality products. With the launch of new generation cars and the changing scene in auto sector in India large number of customers are demanding branded fuel. Trend shows 25-30 per cent customers shifting to branded fuel from normal fuel,” he said.
For non-branded category, the Government is still controlling the prices. However, with the crude prices flirting with $100 a barrel mark, the Government is under pressure to consider a price revision to partially offset the revenue losses suffered by the oil companies.
The Indian crude basket on Thursday was at $94.62 a barrel, the highest till date. The oil marketing companies – Indian Oil Corporation, Hindustan Petroleum Corporation and Bharat Petroleum Corporation – are together losing around Rs 220 crore per day on sale of petroleum products at subsidised rates.
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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