To invest Rs 100 crore for a greenfield project in Bhavnagar.
Attracted by the investment opportunities lying along the 1,600-km coastline, many companies seeking diversification have docked at the ports of Gujarat. The latest to jump onto the bandwagon is Bhavnagar-based Steelcast Ltd. The company is planning to foray into shipbuilding near Bhavnagar and has already acquired land from the government.
Talking about the development, Chetan Tamboli, managing director of Steelcast, said they had earmarked Rs 100 crore for the greenfield project. “We have acquired about 1,30,000 sq m of land in the creeks of Bhavnagar,” he told Business Standard.
Under a new company that is yet to be formed, Steelcast aims to raise the funds needed for the project by a mix of equity, debt and private placements.
The company has a turnover of Rs 18 crore and aims to touch Rs 34 crore next year, said Tamboli.
In the past, many companies like engineering player Elecon, Jaypee group, DLF, Hira Exports and Nirma, keen on getting into the ports business, had approached the Gujarat Maritime Board (GMB) for developing one of the many greenfield port sites in the state. By the end of the Eleventh Five-Year Plan, about Rs 40,000 crore would be realised by way of investments in the state’s port sector. The local industry is expected to expand to $20 billion by 2020 from close to $5 billion now, according to a report by maritime consultants i-Maritime Consultancy Pvt Ltd.
Engineering firm Larsen & Toubro already has a shipbuilding yard in Gujarat and plans to invest about Rs 1,500 crore for shipbuilding and a repair yard.
Gujarat-based Adani group had also set its sights on a shipbuilding and repair yard at Mundra.
ABG Shipyard is building a new shipbuilding facility at Dahej at an estimated investment of Rs 400 crore.
While Pipavav Shipyard Limited, a major shipbuilding and offshore fabrication company, has an outstanding order book worth close to $1.1 billion for 26 new 74,5000 deadweight (dwt) Panamax Bulk Carriers.
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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