Moving Averages | Types of Moving Averages | Usage of Moving Averages | Time Frames

Moving Averages:

Simply put Moving Averages are a math calculation that averages out a series of numeric values. A moving average series can be calculated for any time series. In finance it is most often applied to stock and derivative prices, percentage returns, yields and trading volumes. There are three universal types of moving averages to calculate. The simple moving average is one of the most popular indicators used and is easy to calculate. There is also a weighted and an exponential moving average which are more sensitive to price fluctuations but more complicated to formulate.

The Following Topics were Covered.

 1.       How many types of moving averages are there to use.

2.       How to calculate a moving average.

3.       Which inputs to average?

4.       Time dimensions for moving averages.

5.       Cross over signals.

6.       Moving average channels.

7.       Filters on moving average signals using Stochastics, MACD and other indicators.

8.       Use of Fibonacci as moving average settings.

9.       Use of Pivot Points as a moving average system.

 

Simple Moving Average (SMA)

Here is how to calculate a Simple Moving Average (SMA). If we take the close of the last ten periods add them together then divide by ten we get the mean or average of the last ten periods. As a new period is added we drop the oldest time period.

Period	Price
1	1352
2	1360
3	1325
4	1256
5	1280
6	1220
7	1210
8	1450
9	1440
10	1460

Simple Moving Average = SUM of Prices/10

13353/10 = 1335.3

 

weighted moving average (WMA)

A weighted average is any average that has multiplying factors to give different weights to different data points. But in technical analysis a weighted moving average (WMA) has the specific meaning of weights which decrease arithmetically. Weighted M/A’s give a greater weight to more recent price data. These are complicated and need the aid of a computer.

WMA = the latest day has weight n, the second latest n-1, etc, down to zero.

Exponential moving averages:

Exponential moving averages (also called exponentially weighted moving averages). The EMA applies weighting factors which decrease exponentially. EMA’s reduce the lag by applying more weight to recent prices relative to older prices. The shorter the EMA’s period, the more weight that will be applied to the most recent price.

EMA = (Price (current) – EMA (previous) (x Multiplier) + EMA (previous)

 

Advantages of Moving Averages:

1.       Defines average price changes over time and smoothes out trading noise.

2.       Excellent trend trading tool.

3.       Used to identify, triggers, entries, support and resistance levels.

4.       Can be used in trading systems & one can study the back-tested performance results.

Disadvantages of Moving Averages:

1.       M/A’s lag behind markets price changes.

2.       Not effective in choppy markets.

3.       Not effective in discovering price extensions.

4.       Can’t predict turning points like Fibonacci or Pivot analysis only changes in trends

Values to be used in Moving Averages:

Highs

Lows

Close

Opens

Average of range (High-Low)

Average of typical price (HLC/3)

Volume

       Volatility measurements

There are several ways to identify the direction of the trend with moving averages. If we look at the relationship between prices and the moving average we can study not only the direction of the moving average but the location of price in relationship to the moving average values and the crossovers points of interest.

The Rules of Moving Average:

If the moving average is rising, and prices are above the M/A, the trend is considered up.

If the moving average is declining, and prices are below the M/A, the trend is considered down.

An additional filter to trigger a signal on a price change would be if the close is above or below the moving average. Another method is if the entire range of the price components (O, H, L, C) are trading above or below the moving average. Another filter is if those factors are for more than one session.

The Time periods to be used in Chart for Moving Averages:

The question some traders have is which time periods should they program a moving average for Several time considerations include lining the moving average with a specific time frame such as the number 5 which equals a full trading week. A 20 day and 40 day M/A works out to one and two month moving average.

Day traders can break down the use of multiple time frame analysis such as a 15 minute period and a 5 minute period (which is divisible by 3). Traders can and often do tie in time periods with the Fibonacci numbers series. Which are 1,1,2,3,5,8,13,21, 34, 55, 89, 144, 23, etc. The more popular numbers used are 3,5, 8 13 and 21. Futures traders use shorter time periods, equity traders generally use longer term periods. Just remember that the shorter the time periods used that they are more sensitive to price changes.

Multiple Moving Averages

When we introduce more than one moving average with multiple time periods it helps identify shorter term and longer term trends and changes within those time frames. This concept can be used to identify support and resistance levels to help you increase profits and reduce risks. Always remember that the closing price causes a crossover: that is when a signal is generated.

There are two terms technicians use to identify trend changes:

Dead Cross- bearish or negative cross-over of a s horter term M/A than a longer term M/A.

Golden Cross- Bullish or positive cross-over of a shorter term M/A than a longer term M/A.

Moving Average Convergence/Divergence (MACD):

Moving Average Convergence/Divergence otherwise known as MACD in simplest terms is an indica­tor that shows when a short-term moving average crosses over a longer term moving average. Gerald Appel developed this indicator as we know it today and it is my understanding that he developed it for the purpose of stock trading. It is composed of using three exponential moving averages.

 

MACD signals react quickly to changes in the market that is why a lot of analysts including myself use it. It helps clear the picture when moving average crossovers occur. It measures the relative strength between where current prices are as compared to past time frames from a short term perspective to a longer term perspective. MACD signals are generated after the market has moved in an opposite direction of the original trend, and therefore is why it is considered a lagging indicator.

 

Some general points to help you understand how to use this indicator are first; when the fast line crosses above the slow line a buy signal is generated. The opposite is true for sell signals. MACD also has a zero base line. If MACD line is above the zero line prices are usually trending higher. The opposite is true if MACD is declining below the zero line.

 

Another method, and more reliable, however one that does not form often is a pattern called bullish convergence. This is where the market price itself makes a lower low from a previous low but the underlying MACD pattern makes a higher low. This indicates that the low is weak or “false” bottom and can resort to a turn around for a price reversal. MACD has the same principles as far as a sell signal with what is known as Bearish Divergence. This is where the market price itself makes a higher high from a previous high but the underlying MACD crossover lines make a lower high. This indicates that the second high is a “weak” high and can resort to a turn around for a lower price reversal. We see more divergence patterns in the histogram component than we do in the actual moving average MACD lines.

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Market Healines _ 07/03/2023

📝 Russia announces simplified visa regime for India

📝 CPPIB to buy Goldman's 14% stake in ReNew Energy Global for about $268 millio

📝 Retail loans availed by women rise 25 per cent in 2022: Report

📝 SoftBank's arm aims to raise at least $8 billion in US IPO, say sources

📝 Nova Agritech files DRHP to raise funds via IPO

📝 Daily UPI transactions jump 50% to 36 crore: RBI governor

📝 Vehicle sales grow by 16% in February 2023: FADA

📝 Hero MotoCorp to collaborate with US-based Zero Motorcycles on premium electric bikes

📝 Govt issues guidelines on brand endorsements by social media influencers

📝 Flu cases on rise, experts blame mutated strain, dropping of masks

📝 Reliance Capital lenders seek Rs 8k-crore upfront cash for second auction

📝 MF inflow in equities crosses Rs 1.5-trn for second straight fiscal

📝 Foxconn Technology eyes second chip plant in India, sans govt incentive

📝 HCLTech to explore industrial-scale quantum applications for enterprises

📝 Domino's targets 20-minute delivery across metro cities in next 12 months

📝 Sun Pharma completes acquisition of US-based Concert Pharmaceuticals

📝 Airbus receives order for two advanced ACH160 helicopters in India

📝 Cero plans to set up at least 100 vehicle scrapping centers by 2025

📝 Paytm, Andhra govt tie up on financial inclusion, health and cyber security

📝 DOMS buys 30% stake in Delhi-based toy maker Clap Joy for undisclosed sum

📝 Hindustan Power Exchange trade crosses 2.5 bn unit mark in 8 months

📝 Domestic aviation sector outlook stable; losses to reduce next fiscal: Icra

📝 Extra 1 mn tonnes sugar exports possible if output meets estimate: Govt

📝 CPSE dividend crosses Rs 50,000 crore for second consecutive 

📝 Survey: 88% Indians ready to exchange their high-paying jobs for mental well-being

📝 Essar to develop Stanlow Terminals in UK to import green ammonia

📝 Zepto plans expanding instant food delivery

📝 Quick Heal collaborates with NIST-NCCoE, US

📝 RBI launches “Har Pal Digital” campaign in digital payments push

📝 MSME ministry invites tender to study export issues faced by MSMEs

📝 NTPC logs nearly 12 pc growth in electricity generation in April-Feb this fiscal year

📝 Govt to bring retail trade policy to promote ease of doing business for traders

📝 Sebi lays down data localisation norms for cloud adoption

📝 Govt plans to make hallmarking of gold bullion mandatory: BIS chief

📝 BS-VI norms, chip crunch may hit PV sales in March

📝 Zee Ent, IPRS enter in agreement to settle ₹211 cr dues dispute

📝 US commerce secretary Raimondo to visit India for trade talks

📝 FIIs infuse over ₹721 cr, invest for third day in row; DIIs buy ₹757 cr

📝 ONDC to help small retailers survive e-comm onslaught: Piyush Goyal

📝 Isro arm targets 10 commercial SSLV launches by 2026

📝 Wipro opens its Americas headquarters in New Jersey

📝 Centre to construct 14.71 km four-lane highway in Nagaland: Gadkari

📝 ONGC, TotalEnergies tie up for deep-water offshore exploration.

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Market Main Lines 06/03/2023

📝 FY23 fiscal deficit: FinMin monitoring daily receipts, expenses in March

📝 Food companies, FSSAI, health institutions differ over front pack labelling proposal

📝 Quality control: Govt to issue measures to stop imports of sub-standard goods

📝 Centre saved $27 bn in schemes using DBT method, says Economic Affairs Secy

📝 Chennai-based Computer Age Management Services acquires majority stake in Think Analytics

📝 Bank of Baroda reduces home loan rate by 40 bps to 8.5pc until Mar 31

📝 India's oil buy from Russia surges, now more than one-third of total imports

📝 Pfizer sells leasehold rights of 54-acre land parcel in Thane to Vidhi Research

📝 IndiGo looks to enable codeshare connectivity to US, Canada

📝 Agritech firm DeHaat's FY23 revenue set to rise by over 80% to Rs 2,300 crore

📝 DAO EvTech earmarks Rs 100 crore investment in Tamil Nadu, to hire 2,000 people

📝 Atmanirbhar push: Rs 7,000-cr PLI boost for toys, bicycle components soon

📝 Essar group returns to steel business with $8-billion investment

📝 Fitment panel to examine compensation cess structure for pan masala

📝 Square Yards raises Rs 112 cr from HNIs for office space in Hyderabad

📝 RIL, First Solar, Shirdi Sai bid for 15.5 Gw end-to-end solar manufacturing

📝 HCL Tech to double semiconductor biz in 4 yrs, needs 2 yrs to build fab

📝 Aiming to double India portfolio to $8 bn in 3-4 yrs: CapitaLand India CEO

📝 Bank of Ceylon, SBI, Indian Bank talk benefit of rupee trade in Colombo

📝 Govt likely to lower rail freight rates for coastal shipping of coal

📝 Bond traders request RBI to shift to multiple price auctions of govt debt

📝 Kotak Mahindra Bank to create vertical for mid-market firms

📝 Indian Navy successfully test-fires the BrahMos supersonic missile

📝 Flexi work model is here to stay, was around even before Covid: Infosys

📝 Centre may extend ECLGS for MSMEs by six month

📝 NBFCs expect up to 30 bps rise in borrowing cost in FY24

📝 Finolex looks to expand non-agriculture segment business

📝 BSNL fast-tracks 4G site installation, targets April launch

📝 Bank credit to retail, wholesale trade jumps 16% in February: RBI data

📝 UPI: P2M transactions jump 119% YoY in February 2023

📝 Holi sales to generate Rs 25,000 crore business this year: CAIT

📝 Mustard prices seen falling below MSP on bumper crop prospects

📝 CGA asks departments to avoid last-minute spending rush

📝 Agriculture exports up 10% to $21.8 bn in April-January

📝 India’s per capita income doubles since 2014-15

📝 Saudi Arabia raises oil prices for Asia and Europe for April

📝 Infra, manufacturing push to help economy scale $7 tn peak

📝 Zetwerk raises ₹100 cr debt led by Edelweiss

📝 Centre may ease AT-I bond valuation rules

📝 Mark Mobius sees India as best investment alternative to China.

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Market Main Lines - 04/03/2023

 📝 Fuel retail turns profitable for oil marketing companies

📝 RBI imposes restrictions on Musiri Urban Co-operative Bank; caps withdrawal at Rs 5,000 per customer

📝 Government to soon issue SOPs for Rs 26k crore auto PLI

📝 Divgi TorqTransfer IPO fully subscribed on day 3; GMP rises

📝 India's forex reserves fall for fourth week in a row, at 3-month low

📝 Tata group aiming at net-zero emission by 2045

📝 Govt to rope in more industry partners under SAMARTH scheme

📝 Jindal to invest Rs 10,000 crore to set up 3 mn-tonne steel plant in AP

📝 World Bank commits $1 billion to India for public healthcare infra

📝 Teen freelancing startup Funngro raises funding from Shark Tank judges Amit Jain, Namita Thapar

📝 Funding stays under $1 billion in Feb for startups, drops 84% YoY

📝 Arvind Mafatlal Group plans to scale up its edtech venture GetSetLearn

📝 RBI fines Amazon Pay (India) Rs 3 cr for not complying with PPI & KYC norms

📝 Tech Mahindra to invest up to Rs 700 crore over the next 2-3 years

📝 Vedanta seeking $1 bn from global banks to refinance old debt, say sources

📝 India Inc commits Rs 11.87 trn to Andhra on Day-1 of investor summit

📝 After Bajaj Allianz, New India Assurance gets into surety bonds business

📝 Greenko Energy raises Rs 5,700 crore from GIC, Orix and founders

📝 BIS makes 80% concession on certification/marking fee for micro scale units

📝 Railway freight rises 3.5% in Feb; thermal coal volumes increase 8%

📝 Foreign exchange reserves fall $325 million in a week to $560.94 billion

📝 Services PMI at 12-yr high of 59.4 in Feb on strong demand, easing prices

📝 Pace of bank lending to infrastructure shrinks to 2.3%: RBI data

📝 Free markets to produce best digital sector outcomes: CCI head

📝 Banks’ GNPAs decline 26% in December

📝 Adani to set up cement plants, data centre in Andhra Pradesh

📝 Reliance Industries to set up 10 gigawatt solar energy project in AP, says Mukesh Ambani

📝 Tata Steel Mining signs MoU with GAIL to get clean fuel

📝 Rupee gains 63 paise to close at 81.97 against US dollar

📝 Irdai prefers cashless mode in health insurance

📝 NCLAT refuses relief to SBI in Jet’s transfer of ownership

📝 Startups consider options against Google on excess fees

📝 Doms acquires 30% stake in toy company ClapJoy

📝 ICMR to set up new cell to support research

📝 Parle Agro’s Smoodh crosses ₹600 crore in turnover

📝 NCLT allows merger of HDFC's two subsidiaries with HDFC Capital Advisors

📝 India’s tech sector expected to double in size by 2030 TO $500 billion; NASSCOM

📝 Tata Motors hits the accelerator; reaches 50 lakh passenger vehicles milestone.

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List of Stocks in Rakesh Jhunjhunwala Portfolio

 

S.No	Company Name	Qty
1	APTECH	18,112,312
2	STAR HEALTH & Allied Insurance	100,753,935
3	METRO BRANDS	39,153,600
4	NCC	82,180,932
5	RALLIS INDIA	20,018,320
6	NAZARA TECHNOLOGIES	6,588,620
7	GEOJIT FINANCIAL SERVICES	20,037,500
8	AGRO TECH FOODS	2,003,259
9	VA TECH WABAG	5,000,000
10	SINGER INDIA	4,250,000
11	JUBILANT PHARMOVA	10,770,000
12	CRISIL	4,000,000
13	TITAN COMPANY	45,895,970
14	KARUR VYSYA BANK	37,951,719
15	FORTIS HEALTHCARE	33,652,108
16	AUTOLINE INDUSTRIES	1,678,000
17	FEDERAL BANK	72,713,440
18	JUBILANT INGREVIA	5,020,000
19	INDIA HOTELS COMPANY	30,016,965
20	WOCKHARDT	3,000,005
21	CANARA BANK	37,597,600
22	PROZONE INTU	3,150,000
23	TATA COMMUNICATIONS	5,100,687
24	DISHMAN CARBOGEN AMCIS	2,550,000
25	TATA MOTORS	52,256,000
26	EDEKWISS FINANCIAL SERVICES	14,315,000
27	D B REALTY	5,000,000
28	ESCORTS KUBOTA	1,830,388
	Total Shares	664,596,360

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26 Feb 2023 - Updates - Stock Market - Trading

📝 India set to become 3rd largest economy in five years: Piyush Goyal

📝 US retailer Foot Locker in talks with Metro brands to enter India

📝 Phoenix Mills acquires 5.5 acre land parcel in Kolkata’s Alipore for over Rs 414 crore

📝 Tube Investment India arm TI Clean Mobility to raise Rs 3,000 crore by Mar 2024

📝 India asks IMF, FSB to prepare technical paper on regulating crypto

📝 India, UK finance ministers agree to make further progress on FTA

📝 India & Sri Lanka review defence & security cooperation at annual defence dialogue

📝 Multiples PE invests Rs 1200 cr in Murugappa group company

📝 Nokia phone maker HMD to set up production in Europe

📝 PM Modi, German Chancellor Scholz hold wide-ranging talks to boost ties

📝 Jack Ma-backed Ant Group plans to pare stake in Vijay Shekhar's Paytm

📝 Mahindra Racing withdraws from Formula E due to rear suspension concerns

📝 Delhi govt's decision to allow electric bike taxis to hit thousands: Uber

📝 Private consumption likely to take a hit on India's IT sector squeeze

📝 Startup GoMechanic announces turnaround in core business in January

*Financial Express*

📝 Differences persist over debt relief to distressed nations: IMF chief

📝 FM Nirmala Sitharaman meets heads of World Bank, IMF; discusses debt restructuring

📝 NSE Indices launches Nifty India Municipal Bond Index

📝 Berkshire Hathaway's earnings drop by 14% in 4th quarter

📝 Earthquake of magnitude 6.5 hits New Britain region

📝 Blackstone's CEO Steve Schwarzman receives over $1 bln in pay, dividends in 2022

📝 Russia halts pipeline oil to Poland, says PKN Orlen refiner

📝 Gig workforce witness 5X demand growth after mass layoffs: Report

📝 Pace of FPIs equity selling slows in Feb so far, outflow over ₹2,300 cr

📝 Tube Investments arm Tl Clean Mobility to raise ₹3,000cr to fuel EV platform

📝 ABB India to invest ₹1,000 cr in India in next 5 yrs; opens facility in Nashik

📝 Govt working to improve health infra under ESIC: Minister

📝 Reliance General Insurance going strong, gross written premium rises 13% YoY

📝 APEDA inks pact with Lulu Group to promote millets in GCC countries.

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3 Fundamentally strong stocks with a high credit rating

 

📍 HCL Technologies 📍

📮 ICRA has reaffirmed its long-term rating [ICRA]AAA (Stable) and short-term rating [ICRA]A1+ to the company in respect of its bank limits during the financial year under review. Fitch has assigned a long-term credit rating of A- with a stable outlook to HCL Technologies. 

📍 Exide Industries 📍

📮 Exide Industries has a credit score of A1+ on its short-term debt instrument (Commercial papers) and AAA on its long-term banking facility (Fund based and Non-fund based facility) from ICRA. 

📍 Tata Steel 📍

📮 Moody’s has a corporate family rating of Ba1 with a positive outlook, while Standard & Poor’s has a long-term corporate credit rating of BBB- with a positive outlook.

📈 @indian_stock_share_market

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What is RSI divergence?

 

RSI divergence indicates to technical analysts that the price action and the Relative Strength Index (RSI) are no longer showing the same momentum. It can give a leading signal of change in the trend. A positive divergence takes place when the price makes a lower low but RSI makes a higher low, indicating that price fall has lost the momentum. Similarly, a negative divergence is seen when price makes a higher high, but RSI makes a lower high suggesting that the bulls have lost power. Click here to deep dive into an intraday RSI Positive Divergence Strategy.  

open Free Demat Account    

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Stock Market Update 20 september 2021

 

▼ Nifty 17,396 (-1.0%) ▼ Sensex 58,490 (-0.8%)

After a gap down opening, markets managed to turn positive on an intraday basis. However, selling pressure resumed and indices closed negative. 43 of the Nifty50 stocks closed in the red, indicating broad-based selling. Among the Nifty sectoral indices, Metal (-6.6%) and PSU Bank (-4.1%) were the top losers. While, Nifty FMCG was the only index which closed in green (+0.9%).  Top gainers (Nifty50) HUL ▲ 2.8% Bajaj Finserv ▲ 1.0% ITC ▲ 0.7% Top losers (Nifty50) Tata Steel ▼ 10.0% JSW Steel ▼ 7.6% Hindalco ▼ 6.1% Here are the top stories of the day. For more updates on F&O, click here. Kotak Bank buys stake in KFin The private lender has acquired around 10% stake in KFin Technologies for ₹310 crore. Kotak Bank’s management reportedly said that the KFin is well-positioned to continue growing its market as it is a platform of choice for asset managers, investors and corporates.  KFin, mainly provides registrar and transfer agency services, had a turnover of ₹481 crore in FY21. Meanwhile, shares of Kotak Bank were down 0.5% today, but have gained nearly 14% so far this month. Hotel stocks see strong investor interest Shares of Indian Hotels (+7.8%), EIH (+3.0%), Taj GVK (+5.5%) jumped sharply in an otherwise weak market. The rise in the stock price was coupled with high volumes, indicating strong buying interest.  Experts believe that the hospitality business could be back to pre-Covid level toward the end of this fiscal, provided there is no third wave. Further, easing restrictions and pick-up in travel could aid recovery in the sector. RVNL rises on merger reports According to reports, a proposal has been mooted to merge the state-owned Rail Vikas Nigam (RVNL) with IRCON. This proposal of merger is a part of a report relating to rationalisation of government bodies.  Besides this, RVNL bagged a contract worth ₹1,034 crore for design and construction of elevated viaducts of metro stations project in Indore. In the wake of these developments, shares of the company rose 1.3% today. Closing Bell! The fear that Chinese real estate major Evergrande could default on its interest payments raised concerns of slowdown in the Chinese housing market and consequent impact on the demand for commodities. The rub-off effect was seen in Indian metal stocks. Further, shares of banks were also under pressure as they could be vulnerable to any global financial shocks. Meanwhile, traders must brace for higher volatility in the coming weeks as indicated by the India VIX, which rose 15% today. Good to know What is an IPO registrar? An IPO-bound company ropes in a registrar, which is an independent financial institution, for keeping a record of the ownership and issue of the shares. Their responsibilities also involve the processing of IPO applications, allocating and transferring shares to demat accounts and refunding the money. Investors can get in touch with the registrar of an IPO-bound company before or after the issue for any queries and complaints.

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Market Recap for 03 March 2021

 

Nifty 15,245 ▲ 326 (+2.1%) Sensex 51,444  ▲ 1,147 (+2.2%)

The markets opened with a gap-up today, and after some initial weakness, steadily rose to close about 2.2% higher. With today’s gain, both the Nifty50 and Sensex have fully recouped the losses made on Friday. In all, 43 of the Nifty50 stocks advanced today. Except for the Nifty Auto index (-0.6%), all sectoral indices closed in the green today, with the Nifty Metal (+3.3%) and Nifty PSU Bank (+3.1) posting the strongest gains. Top gainers (Nifty50) Tata Steel ▲ 5.3% Bajaj Finserv ▲ 4.9% Reliance ▲ 4.8% Top losers (Nifty50) Hero MotoCorp ▼ 1.5% Maruti ▼ 1.1% Bajaj Auto ▼ 1.1% Here are the top stories of the day. Sugar shares gain on rising global prices Shares of sugar manufacturing companies such as Bajaj Hindusthan (+20.0%) and Dwarikesh Sugar (+10.0%), Shree Renuka (+9.6%) and Triveni Engineering (+4.3%) were upbeat today. Globally, sugar prices have risen nearly 30% in the last six months due to supply concerns from Brazil, the world’s largest sugar producer. Further, the firmness in sugar prices is accentuated by expectations of lower than anticipated surplus stocks in India, which is the second-largest producer. Any rise in exports from India will further reduce inventory and could trigger a price rise in domestic markets. Forging stocks up on spurt in US truck sales A three-fold YoY increase in sales of heavy trucks in the US led to a surge in stocks of Indian forging companies such as MM Forgings (+7.3%), Ramkrishna Forgings (6.0%), and GNA Axles (+0.5%). These companies derive 53%, 40% and 35% of their revenues from exports, respectively. In 2020, March, April and May had a severe negative sales impact due to Covid. Thus, the low-base effect could play a part. Reports suggest that sales of heavy trucks will be in the range of 2.5-2.8 lakh units in 2021, about 4-8% higher than earlier estimates. RPP Infra surges on big-ticket orders RPP The Chennai-based construction company today announced four order wins totalling up to ₹1,000 crore. After the news broke, the stock jumped about 12% intraday before closing 4.9% higher. All four orders are in the state of Tamil Nadu and are a mix of water resource and highway development projects. With the new order wins, RPP’s outstanding order book stands at ₹3,200 crore, more than 5 times its FY20 revenues. MTAR Tech IPO oversubscribed on Day 1 The initial public offer (IPO) of MTAR Technologies was oversubscribed by 3.7 times on the first day of the issue. The Hyderabad-based precision engineering company manufactures equipment for the defence, aerospace and nuclear energy sectors. The IPO is open for bids till 5 March 2021 at a price band of ₹574-575 per share. You can apply for it here. Closing bell The markets zoomed past last week’s high and shrugged off the negativity created by the spike in the US treasury bond yields. The rise in the markets was also supported by positive cues from the Asian and European markets. While the situation looks hunky-dory, traders must continue to watch out for any adverse movement in the US treasury yields and prices of major commodities such as copper, as these could affect overall investor sentiments. Good to know What is active fund management? Active fund management is an investment approach that purposely shifts funds either between asset classes (stocks, bonds, etc.), sectors (sector rotation), or between individual securities (security selection) in order to seek superior returns.

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