| Bharat Oman Refinery Ltd (BORL), an equal joint venture between Bharat Petroleum Corporation (BPCL) and Oman Oil Company, has filed a draft red herring prospectus with market regulator Securities and Exchange Board of India (Sebi) for raising around Rs 2,900 cr by offering part of its shares to the public. |
| |
| Before the share sale, BORL, which is constructing a 6-mn tonne per annum crude oil refinery at Bina in Madhya Pradesh, will privately place shares worth around Rs 900 crore with its promoter BPCL and another Rs 26.90 crore worth of shares with the Madhya Pradesh government, a company official said. |
| |
| The share sale to the public and the private placement is likely to constitute around 48 per cent of the equity capital of BORL. After the share sale Oman Oil’s stake in the company is expected to come down to around 10 per cent while BPCL will hold around 48 per cent. |
| |
| The company official said the company was going ahead with raising money through a share sale in spite of a volatile market as refinery margins are expected to remain strong in the near- to mid-term. |
| |
| The money raised from the share sale to the public will be used to fund the refinery at Bina. The Rs 10,400-crore refinery, which is expected to be completed by January 2010, is being funded by a combination of debt and equity in the ratio of 1.6:1, the company said in a statement. BORL has already raised Rs 6,400 crore as debt from a consortium of lenders. |
| |
| The refinery is being designed with a Nelson complexity index of 9.1, the company said. Reliance Petroleum’s under-construction refinery in Gujarat has a Nelson complexity index of nearly 15, one of the highest in the world. A higher complexity index means higher sulphur crude oil can be processed by the refinery. The higher the sulphur content in the crude oil, the cheaper is the oil. |
| |
| The BORL project also includes a crude oil importing and storage system in Vadinar in Gujarat. The terminal will be connected to the refinery through a 935-km crude oil supply pipeline. |
| |
| BORL already has a product off-take agreement with its promoter BPCL. The products will be marketed in India, with no quantity of products being exported. The BORL statement said that BPCL intends to construct a marketing terminal at Bina and a pipeline connecting the marketing terminal to its existing product pipeline between Mumbai in the western part of the country and Bijwasan in the north. |
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.
No comments:
Post a Comment