Sign MoU with state govt for greenfield facility.
Months after Mahindra & Mahindra (M&M) exited a joint venture with Renault and Nissan Motor, the French and Japanese auto firms have got their car project back on the road, signing an MoU today with the Tamil Nadu government for a greenfield facility near Chennai.
Renault and Nissan will invest Rs 4,500 crore for the 50:50 joint venture unit, which is planned on 670 acres at Oragadam, near Chennai. The first car is expected to roll out from here in 2010.
The unit will have a capacity of 400,000 vehicles per annum. Most of this will be for the domestic market. Exports will commence four months after production starts.
Both companies refrained from giving any details about the vehicles they will make at the facility, but it is widely believed that Renault plans to roll out its small car together with Bajaj from here.
The MoU was signed with state government officials by Patrick Pelata, executive vice-president (products, plan and programmes), Renault, and Carlos Tavares, executive vice-president (corporate and product planning), Nissan Motor.
Nissan and Renault executives said in separate statements that the facility will produce compact cars for Nissan in line with Nissan’s goal to start off with higher volumes.
The plant will employ between 3,000 and 4,000 people initially. Both companies will have separate assembly lines and powertrain assemblies.
The alliance will also open the Renault-Nissan Technical and Business Centre India (RNTBCI) in Chennai by March. It will focus on product and manufacturing R&D, as well as purchase planning and design for the Renault-Nissan joint venture.
“Nissan is proud to bring its skills and passion to India and we will look for suppliers who share that passion,” Tavares said.
The Renault-Nissan alliance, launched in 1999, has grown from strength to strength, grossing combined sales of 6 million cars in 2005. Renault holds a 44.4 per cent stake in Nissan, but the companies have remained separate, autonomous units.
Nissan’s Kimura to head operations
NISSAN Motor has said that Shohei Kimura, now the company’s corporate vice-president, will head the new Nissan-Renault facility near Chennai.
Kimura will relocate to Chennai in a few months to take charge as managing director and CEO of the Chennai operations.
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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