Leading jewellery maker Gitanjali Gems has forayed into the business of providing gold loans and safe deposits vaults.
The company has also acquired Trinity Watch Co and Renaissance Retail Ventures for undisclosed sums.
Gitanjali has formed Mohar Jewels, a wholly owned subsidiary, to ensure a smooth entry into the gold business, according to Gitanjali’s release to the Bombay Stock Exchange. It bought the two companies through Gitanjali Lifestyle, a subsidiary, to expand its product portfolio.
Gitanjali Gems will soon launch the fashion retail format through its retail subsidiary Gitanjali Lifestyle. The company said it is exploring joint ventures and inorganic growth opportunities to introduce international lifestyle brands in India.
While Trinity Watch sells watches under the Iris brand, Renaissance Retail Ventures is engaged in the business of promoting, conducting and managing retail stores and also trades silver, gold, platinum and diamond jewellery.
Besides, Gitanjali Lifestyle has tied-up with three fashion designers to introduce fashion apparels and private labels. The parent company is targeting a turnover of Rs 500 crore from Gitanjali Lifestyle in two years.
Sadanand Pawar, president, Gitanjali Lifestyle said, “The luxury spending on apparels is growing at 30 per cent. The company will introduce the fashion lines at the upcoming Wills Fashion Week.”
He mentioned that the company would open exclusive stores but had not zeroed upon the name for the format.
“We plan to invest Rs 150 crore in two years in the lifestyle segment and are aiming to have 50 plus stores by year-end,” Pawar said.
“The company aims to become an important player in retail space with main thrust on jewellery, watches, fashion, digital accessories and cosmetics.”
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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