#ETHANOL story we are hearing a lot and #Sugar Sector is in news as well.
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PM Modi on 5th June, World Environment Day, announced that India has achieved 10% ethanol blending of petrol, five months ahead of schedule.
This is 4 times than in 2014, when it was just 2%.
But what is #Ethanol and why are mixing it with #Fuel?
Ethanol:
Ethanol or Ethyl Alcohol is a biofuel, it can be produced from biomass such as sugarcane, corn, etc. which have high starch content.
In India, ethanol is mainly produced from sugarcane through fermentation.
Ethanol can be mixed with petrol to form different blends which are being used as fuel.
To make ethanol, we take the help of yeast and feed it sugar in an oxygen-less environment.
When deprived of oxygen, yeast uses anaerobic respiration and instead of converting sugar into energy and Carbon Dioxide, it converts it to energy and ethanol.
This is called Alcohol Fermentation, which gives us Ethanol.
โก๏ธLess Carbon Emissions:
Modiji announced that the achievement of 10% ethanol blending has reduced carbon emissions by 27 Lakh Tonne.
โก๏ธFarmers Income:
Boosted Farmer's Income by โน40,000 crores in 8 years, increasing employment generation, and greater investment opportunities.
โก๏ธReduce Import Dependence:
It has saved the country โน41,000 crores in foreign exchange spending on fuel imports. India imports 85% of its oil by spending around $100 Billion in foreign reserves every year.
More Ethanol use will encourage more natural habitats to be converted into farmland and may also lead to a decrease in the availability of those food sources for consumption.
In the US, 5.8% of all farmland is just used for corn cultivation to make ethanol. And in Brazil, massive sugarcane cultivation is contributing to the reduction in the Amazon Rainforest.
โก๏ธOther Renewables are Better:
Solar and other renewables are more cost and energy efficient. Experts believe turning to electric is more ideal.
The 1st Generation or Primary Sources of Ethanol we use include the food sources such as sugarcane or corn seeds.
To eliminate the cons related to 1G Ethanol, we can have 2G sources of ethanol, where we can produce ethanol from farm waste left after harvest like corn, cobs, rice husks, sugarcane bagasse, etc.
There is also research around 3rd generation sources of ethanol where we can source ethanol from algae grown in wastewater, sewage or salt water.
Brazil is by far the leader in ethanol usage, where the average ethanol blending in petrol is about 48%.
But normal vehicles aren't ideal for such high content of ethanol, this is where flex fuel engines come into play, which is adapted to higher % of ethanol or even 100% ethanol.
In Brazil, 80% of all vehicles are flex fuels
๐ผ๐๐๐๐'๐ ๐ด๐๐:
PM also announced that 20% ethanol blending goal by 2025 is within reach, under the roadmap for Ethanol blending in India, 2020-25.
In Oct 2021, the govt announced an incentive to encourage sugar companies to divert excess sugar stock to producing ethanol
What does this mean for your vehicle?
Currently, petrol in #India is E10, which means 5-10% ethanol, and any vehicle manufactured after 2008 will have no issues with E10/E20.
But anything above that would need flex-fuel engine vehicles which are yet to be rolled out in India.
That's all about Ethanol Blending in Fuel.
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In this thread๐งต, I am sharing a #trading strategy that I am using based on this.
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What is this Volume Climax?
You would have seen some kind of spurt in volume in a day after a up/downtrend. Here, we don't consider any day in which there is corporate action or quarterly result.
Let's see some chart:
Below Chart is of #Metropolis when volume spurt occurred.
Now one to observe in Metropolis chart is after that volume spurt candle, the uptrend had paused.
This means at this candle smart money had offloaded the stock and retailers bought it. Hence stock went in the downtrend and Metropolis went down by 20%.
This learning thread would be on
"๐๐จ๐๐จ ๐ค๐ ๐พ๐พ๐"
Also, an investment strategy and trading strategy is shared
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1/19
Before we start with various strategies, just a brief about Commodity Channel Index (CCI) which is a momentum-based oscillator used to help determine when an investment vehicle is reaching a condition of being overbought or oversold.
In this thread I am sharing Trading Setup, which can be used to find ๐น๐๐๐๐๐๐๐ ๐บ๐๐๐๐๐ after a ๐ซ๐๐๐๐๐๐๐๐ .
I have shared such trading setups in the past as well.
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Generally, all stocks have tendencies to retrace back to EMA and this is called Mean Reversion.
200 EMA is a crucial one which can be used to find support for stocks during downtrend.
It works on Daily, Weekly and Monthly time frame.
2/10
I would prefer to do backtest on the stock and see how it had reacted when it approaches near crucial EMA in the past.
Sharing some examples where stock took support near EMA:
Russi Mody, Chairman of Tata Steel from 1984 to 1993, was once holding a weekly meeting with Tata Steel staff at a football ground in Jamshedpur.
A worker took up a niggling issue. He said the quality and hygiene of toilets for workers was very bad.
Whereas, he pointed out that the cleanliness and hygiene of executive toilets are always very good.
Mr Mody asked his top executive how much time he needs to set it right. The executive asked for a month to set it right.
Mr Mody said "I would rather do it in a day. Send me a carpenter."
Next day, when the carpenter came, he ordered the signboards to be swapped !!!
The signboard on the "Workers" toilet was changed to "Executives" and Executive toilet to "Workers".
#CPR is an indicator which is used for #Intraday in Stock Market.
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Also, an investment strategy is shared using CPR in the end.
1/24
Central Pivot Range (CPR) acts like a magnetic level for any stock/index. Traders use it for intraday but it works on higher time frame as well.
CPR is just the three lines which is like a magnet and price approaches these levels. CPR acts like a support or resistance.
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1/12
Let's start with the strategy now. This strategy is similar to "๐๐ฟ๐ผ๐ป ๐๐ผ๐ป๐ฑ๐ผ๐ฟ". This the simplest strategy that I follow and sharing with others too. Rules are also easy to follow.
We are trading this using technical charts and price action.
2/12
Setup: 1. Open #Nifty chart on Thursday at 3pm. 2. Find out nearest support and resistance for Nifty on daily time frame. 3. Round off Resistance and Support. 4. Short Call options with strike equal to resistance 5. Short Put options with strike equal to support.