Maruti Suzuki (MSIL), India's largest car maker, registered a marginal (0.4%) rise in domestic sales in February at 59,311 units when compared with 59,095 units sold in February 2007.
The company said the marginal increase is due to customers postponing their purchase decision in anticipation of the excise duty cut in the budget.
Finance Minister P Chidambaram yesterday proposed to bring down excise duty on small cars to 12% from 16%. Maruti has decided to pass on the complete benefit of the excise cut to customers, and has cut prices of its cars in the range of Rs 6,500 to Rs 18,030.
Sales in the A2 segment, including cars like Swift and Alto, increased 2.7% to 44,059 units. The company sold 1,958 units in the A3 segement including SX4 and Esteem - an increase of 8.9%. Exports increased 15.5% to 4,511 units in February.
General Motors India today reported a 80% increase in sales at 5,563 units in February when compared with 3,087 units sold in February 2007.
The company sold 1,681 units of Tavera, 1,102 units of Aveo, 360 units of Optra, 2,229 units of Spark and 191 units of Captiva.
P Balendran, vice president, GM India, said: "We are very pleased to see such a robust growth for all our carlines under the Chevrolet brand. With the consistent surge in monthly sales, our key focus remains to address the changing customer needs while providing them world-class products and best-in-class service."
Bajaj Auto and Hero Honda have witnessed a decline in sales in February on the back of falling demand for entry-level models and restricted availability of finance.
Bajaj Auto reported an 8% decline in motorcycle sales at 158,662 units for February as against 171, 780 units sold in February 2007. A release from the company said: "A degrowth of about 13% in the 100cc segment offset stable sales in the 125cc + segment resulting in an overall degrowth of 10% for the motorcycle industry."
Hero Honda had its biggest fall (5%) in monthly sales in this financial year at 265,431 units from 280,515 units in February 2007. The company has blamed lack of finance as the reason for the decline in sales.
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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