New buys to meet international route expansion needs.
Aircraft manufacturer Boeing is negotiating with the country’s two major carriers Air India and Jet Airways for 60 wide-bodied aircraft.
The combined deals are expected to be valued at $15 billion. Most of these aircraft are being bought for use on international routes.
"Airlines in India like Jet Airways and Air India have firm orders with Boeing for delivery till the year 2011. Now they are planning beyond that in view of expected market growth," said Dinesh Keskar, senior vice-president (sales), Boeing Commercial Airplanes.
Air India is studying how many aircraft it requires and Jet Airways is also planning more wide-bodied aircraft to service the expansion of its international network.
Said S Venkat, executive director (finance), Air India, "The airline will finalise the orders it is going to place with aircraft manufacturers in the next three months. A high-level committee set up to examine the total number of aircraft required beyond 2011 will submit a growth projection and a Request for Proposal has already been made."
Jet Airways Executive Director Saroj Datta said: "We will take a final decision on the new aircraft only after looking at the market situation."
In its growth forecast for the domestic aviation sector, the Seattle-headquartered Boeing put aircraft requirement at 911 worth $86 billion for the next 20 years.
Air India has already contracted orders for 43 wide-bodied aircraft from Boeing which will be completed by 2011 and will be used to replace the older aircraft with the carrier. It has also ordered 27 787 "Dreamliners". The airline's total orderbook with Boeing, including narrow-bodied aircraft, is 68 aircraft valued at $11 billion.
Boeing also has an order to deliver 43 wide-bodied aircraft to Jet Airways till 2012, of which 12 will be Dreamliners.
Boeing also supplies to SpiceJet but these are narrow-bodied aircraft.
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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