State Bank of India Group to contribute Rs 1,000 crore.
Maithon Power (MPL), a 74:26 joint venture of Tata Power and Damodar Valley Corporation (DVC) today announced completion of financing for the 1050 Mw coal-based thermal power project being set up in Dhanbad district of Jharkhand.
According to a release issued by Tata Power today, the project, estimated to cost Rs 4,450 crore, is being funded on a debt-equity ratio of 70:30. The debt for the project is Rs 3115 crore, and is being financed by various banks led by State Bank of India (SBI).
The State Bank of India group is taking the largest exposure to the tune of Rs 1,000 crore. The consortium of banks include Allahabad Bank, Bank of Baroda, Canara Bank, Central Bank, Dena Bank, Indian Overseas Bank, J&K Bank, Oriental Bank of Commerce, Punjab & Sind Bank, Tamilnadu Mercantile Bank and UCO Bank, the release added.
Asim K. Barman, chairman, Damodar Valley Corporation, said: "We are happy on this landmark occasion of Maithon project. This public-private partnership is an important initiative towards meeting the power supply needs of the country. For us, the agreement marks a successful trend and offers hope for more such joint initiatives for the power sector in the future."
Prasad R Menon, managing director, Tata Power, said: "The closure of financing for the Maithon project is an important milestone. The attractive financing demonstrates the faith of the lenders in the promoters, their execution capabilities and expertise to complete the project in time. The unique terms of debt financing provides us more flexibility in the execution of the project as well as help in controlling costs."
The project will comprise two generating units of which the first unit of 525 Mw is expected to be commissioned by October 2010 - in time to meet the 2010 Delhi Commonwealth Games requirements. The second unit will be commissioned by March 2011. The long-term coal linkage has been allotted from the mines of Bharat Coking Coal (BCCL) and water allocation is from the adjacent Maithon reservoir.
MPL has also signed power purchase agreements with DVC for 300 Mw, and is the lowest bidder for 309 Mw for distribution licensees of Delhi, the release said.
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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