Archive for January 12th, 2010

Additional Directional Movement (ADX) Final Part

Hello Friends here we come up with an extension of our previous blog “Additional Directional Movement (ADX)” Part 1.

.

Additional Directional Movement (ADX) Final Part

.

In this blog we would read about the features of ADX and the current scenario of the ADX in the market.

.

ADX On PRACTICE

.

The great feature of ADX is the ability to see buying and selling pressure at the same time.

.

Values above 40 indicate very strong trending while values below 20 indicate non-trending or ranging market conditions.

.

The indicator does not grade the trend as bullish or bearish, but merely assesses the strength of the current trend.

When ADX begins to strengthen from below 20 and moves above 20, it is a sign that the trading range is ending and a trend is developing.

The current scenario of ADX falling from the levels of 32 & now continuing at 25, tells that the momentum of price is toward a weaker section with a sideways movement.

.

It shows that the sellers are stronger than the buyers,this is seen in a downtrend.

.

The lesser volumes of trade & the bearish fundamentals also confirm that the overall sentiments are not supportive to the prices.

The factors are as follows:

.

· Fresh arrivals are coming to the spot market with harvesting in Idukki.

· Commencement of fresh arrivals with higher moisture content is likely to keep check on the price.

· Indian production is also expected to be higher by 10% to 55,000 tonnes.

· Indian parity in the international market quoting at $3,200-3,225 a tonne (c&f).

· Spot prices have plunged by 9% within a span of 4 weeks, quoting near the levels of 14K.

.

The investors are being cautious to enter the trade, which is hence keeping the price in a range between Rs. 13800-14800.

.

However, the current tight stock levels in pipeline, & demand from the overseas and domestic market is adding support to prices.

.

The DMI lines are good reference for price volatility.

.

In a nutshell, values of the ADX can be used to confirm the strength of an upward/down trend & also give the investor the confidence to enter into the trade.

.

🙂

.

Note : For More Latest Industry, Stock Market and Economy News and Updates, please Click Here

Economic Indicators

Hello Friends here we come up with our another write up on “SMC Gyan Series”.

Topic is “Economic Indicators”.

In this Blog, we would know what are major economic indicators ?

.

Economic Indicators

.

Major Economic Indicators :

.

.

Industrial Production:


Measures the change in the production of the nation’s factories, mines and utilities, industrial production.

Also measures the country’s industrial capacity utilization.

.

Gross Domestic Product (GDP):

Indicates the pace at which a country’s economy is growing or shrinking.

.

Purchasing Managers Index (PMI):

This index includes data on new orders, production, supplier delivery times, backlogs, inventories, prices, employment, export and import orders.

.

Producer Price Index (PPI):


Measures average changes in selling prices received by domestic producers in the manufacturing, mining, agriculture, and electric utility industries.

The PPIs most often used for economic analysis are those for finished goods, intermediate goods, and crude goods.

.

Consumer Price Index (CPI):


Measures the average price level paid by urban consumers (80% of the population in major currency countries) for a fixed basket of goods and services.

.

Durable Goods:


Measures new orders placed with domestic manufacturers for immediate and future delivery of factory hard goods.

This figure is a useful measure of certain kinds of customer demand.

.

Employment Cost Index (ECI):


ECI counts the number of paid employees working part-time or full-time in the nation’s business and government establishments.

.

Retail Sales:


It is the indicator of broad consumer spending patterns and is adjusted for normal seasonal variation, holidays, and trading-day differences.

.

Housing Starts:


Measures the number of residential units on which construction is begun each month.

.

🙂

.

Thus to conclude Economic indicators is a tool for an investor for knowing the economic world.

It also simultaneously a tool to smartly make money out of the sensitive movements of the financial & commodities market.

.

🙂

Note : For More Latest Industry, Stock Market and Economy News and Updates, please click here

Fund Raising by PE and VCs to Increase by 30-40 percent in 2010

Fund Raising by PE and VCs to Increase by 30-40 percent in 2010

.

Private equity (PE) players and venture capitalists (VCs) are back in the market to raise funds.

.

Market experts believe that 2010 will see these players raising $13-15 billion, almost as equal to what PE players and VCs raised in 2008.

.

PE players and VCs had raised $10-11 billion in 2009, though most of this was in the second half of 2009.

.

Experts expect to see a 30-40 per cent rise in fund-raising this calendar year courtesy PE players and VCs.

.

“Close to 45 funds are either preparing to enter the market or have already hit the road to raise funds.

While I feel that matching the level of 2007 is difficult, the year will be better than 2009,”

said Jagannadham Thunuguntla, equity head, SMC Capitals.

.

Industry experts expect that this year will be governed by returns.

Many Industry experts are of view that LPs are going to focus on returns and returns will be more than 20 per cent, better than in 2009.

.

“I think LPs are still trying to rework their portfolios.

It will be difficult for general partners to convince LPs to invest,” said Thunuguntla.

.

Infrastructure, consumer services, education, healthcare, financial and clean technology will be the favoured sectors, say experts.

.

One sector that is already in focus is infrastructure.

The players are in the process of raising close to Rs 8,541 crore ($1.78billion) worth of infrastructure funds.

.

Investors will become company-specific rather than sector-specific.

Good sectors can have bad companies and so it makes sense to focus on companies,” said Thunuguntla.

.

Fund-raising by VCs already seems to be gaining momentum.

Moreover Industry experts are of view that fund-raising will be more selective this year.

It will be better in 2010 than what was seen in 2008-09.

.

However experts say that the number of funds that get allocation from LPs will come down significantly this year.

.