Reliance Communications (RCom) is investing Rs 800 crore ($200 million) to enhance its managed global ethernet services footprint for enterprises. The company is also planning to increase its investments in the global enterprise market to Rs 2,000 crore ($500 million).
Global ethernet services provide transmission of data on a real-time and secured manner, and have a market potential of around $30 billion by 2010.
RCom already provides ethernet services to over 1,000 financial institutions such as the Chicago Mercantile Exchange, New York Stock Exchange, Credit Suisse and Morgan Stanley among others.
According to sources close to the development, RCom is planning a two-pronged approach to tap the growth potential of the global ethernet-based services market.
In the first stage, the company plans to utilise the 1.15 lakh km of its existing optic fibre backbone that connects over 40 countries.
In the second stage, it would focus on alliances with telecommunication majors in Europe and Asia, they said.
The company, which acquired the global ethernet major Yipes last year for Rs 1,200 crore ($300 million), is also planning to increase its investments in the global enterprise market to Rs 2,000 crore ($500 million).
The Rs 2,000 crore investment is in addition to the Rs 6,000 crore the company is investing in the 50,000 km new generation network project.
A company spokesperson said that the company continuously looks at avenues to enhance business opportunities including expansion of its products and services portfolio in existing and new geographies to add further value for its stakeholders.
The company is also in the process of developing ready-to-use and tailor-made global ethernet delivery modules for each of the vertical it plans to focus on, based on the characteristic requirements of each customer segment, in order to minimise the lead time for commercial provisioning of services upon receiving an order.
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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