Drops earlier plan for a plant in western India.
The Aditya Birla Group, one of India’s largest corporates, is planning to invest $120 million (about Rs 480 crore) in a carbon black plant in Sri Lanka.
“The matter has been under discussions since last year. Aditya Birla Group is likely to go ahead with its proposed $120 million investment on the carbon black plant in Koggala Export Processing Zone, in southern Sri Lanka,” an official said.
The company said in a statement that it expects to get the go-ahead following a meeting in New Delhi recently between Sri Lankan Minister for Enterprise Development and Investment Promotion Sarath Amunugama and senior executives of the Birla Group.
The company had initially selected western India for its new plant, but it is now convinced about the potential in Sri Lanka after feasibility studies and assurances from the Sri Lankan minister.
Carbon black is one of the main raw materials used in the manufacture of tyres. The island nation is one of the world’s largest exporters of solid rubber tyres.
Amunugama said that the launch of the carbon black plant would give Sri Lanka a competitive advantage in both natural as well as synthetic rubber.
Sri Lanka believes that the Birla investment would also draw interest from some of the world’s largest tyre manufacturers, including Michelin of France.
Last week it was reported that another Aditya Birla Group company, Ultratech Cement, plans to acquire a five lakh tonne cement plant in Jaffna which has been closed for nearly 17 years.
The company has initiated talks with Sri Lankan government officials and officials of the plant. Holcim and Tokyo Cement were also said to be keen on the plant, but have been deterred by the unrest in the region.
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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