Members of Research Committee

SBES ASTUTEe-newsletter

Aug, 2014Volume - IV Issue - 2

Editorial Board

Patron

Prof. Manish R. Mundada

Founder President, SaiBalaji Education Society

Editor

Dr. Laxman Kumar Tripathy

Director, SaiBalaji International Institute of Management Sciences

Editor

Dr. Sandip Sane

Director, International Institute of Management Studies

Advisory Committee

Dr. Nadeem Khan

Dean Academics, International Institute of Management Studies

Dr. Tripti Sahu

Dr. Nitin Ranjan

Prof. Smarjeet Das

Prof. Manish R. Mundada Sir being awarded with presitigious " Uddhav Sri Award 2014" for his contribution in the field of Management Education by Honorable Central Minister - Heavy Industries, Mr. Anant Geete Saheb... Congratulations Sir...

A technical analysis of securities is a study of past price and volume trends to judge the direction of future price movements of scrips. The movement of share prices follows a random pattern. Bulls and bears run the show. How long each of these phases would last, no one can say for certain. However, investors can resort to technical analy-sis to arrive at expected movements of stock prices.Technical analysis assumes that prices take a ran-dom walk and one can judge the future price m o v e m e n t s based on the past trends. It thus helps in-vestors to take their investment decisions. How-ever, ultimately, it is the market sentiments that determine the prices ruling on the stock floors.T e c h n i c a l analysis has two main methods -one dependent on intuition and interpretation, the other on analysis of data. Under the first method, analysts interpret price charts depending on the pattern of movement - head-and-shoulders patterns, double-bottoms, flags and pennants etc. These patterns are used by analysts to predict share price movements.In case of the other method of technical analysis, analysts rely on complex calculations of numbers, to crunch raw price and volume data. After this analysis process, the secondary indicators, i.e., oscillators, moving averages etc, are calculated and used to spot buying or selling opportunities. Analysts use software, scientific methods, com-plex equations and complex mathematical formu-las to derive indicators.

Moving averages Generally, there are two kinds of technical indica-tors. One type (including moving averages) is best-suited to track an upward or downward trend. The other (including oscillators) is most useful in track-ing sideway movements. Among the trend-following indicators, the best-known is the moving average, which charts the average price of stocks over a period of time. With each new calculation, the oldest observation used in figuring the average is dropped and the most recent is substituted. Thus,

a ten-day moving average would be calculated us-ing prices from the past 10 days.

Generally, analysts use 2-3 moving averages to sig-nal when to buy or sell. Then they watch closely to see when the averages begin to cross one another. They can also build moving-average envelopes around prices by adding and subtracting a fixed per-centage of the average to itself by, putting 'bands' of a percentage point above and below a y-day moving average. In case a daily price moves out of the band and hence out of the envelope might be interpreted as meaning that the market is headed for an ex-treme.

Technical Analysis – A Practical ApproachPage 2SBES ASTUTE, AUG, 2014

Bands Analysts apply bands (called Bollinger bands) to spot promising trading time windows as the prices move beyond the bands. These bands are also built around a moving average, but the boundaries of the envelope are related to the volatility of the market. When prices are volatile and harder to predict from the previous day's information, Bollinger bands widen. When prices are relatively steady, the bands narrow.Oscillators Oscillators are generally used alongside moving av-erages or other trend-following indicators to im-prove market timing. These indicators generally fluctuate from one extreme value to another around a midpoint line. In case an oscillator hits extreme values or when an oscillator chart diverges from a price chart, it's a matter of concern for the analyst. Oscillators are of various types. Momentum is a run-ning measure of the difference between the latest price and the price a fixed number of days earlier. Stochastic is an indicator of the level of the current price in relation to the high and low prices over a fixed period.This indicator is usually graphed as two lines repre-senting the original indicator and it is a three-day moving average. Moving-average convergence di-vergence (MACD) is an indicator that is based on the difference between a short-term and a longer term moving average.

The result is also averaged and the two are com-pared. Signals are generated when the two lines cross. The difference between the two lines is called a histogram. Relative strength index compares the price of a stock on up-days over a given period to the price on down-days over that same period. The Larry Williams percentage indicator defines the lat-est price in terms of its range over a recent period.This analysis is undertaken by experts in the field. Now we have pre-defined software to take care of most of the aspects of the analysis. However, mak-ing an analysis is one part of the story. The real test is how well one reads and uses the analysis to pre-dict the future stock movements.

Compiled by—Prof. Smarjeet Das

Page 3Volume - IV Issue - 2

Ponzi schemeScam in which gullible public is enticed with the

promise of very high returns in a very short time,

but is based on paying off the early 'investors'

from the cash from (hopefully ever increasing

number of) new 'investors.' The whole structure

collapses when the cash outflow exceeds the

cash inflow. The originators of the scheme, how-

ever, usually disappear with large sums a few

days before the crash. Named after Charles Ponzi

(1882-1949), an Italian immigrant to the US

who, during 1919-20 collected more than fifteen

million dollars from some 40,000 eager people

by promising to double their investment in 90

days. See also pyramid scheme.

Ponzi Scheme in India

In Delhi, India, Hoffland Finance collapsed amid

a major scandal in 1998. Hoffland, a category II

merchant banker, had been suspended by SEBI,

which directed it to refrain from undertaking any

new portfolio management assignments. It had

floated a scheme, called "Invest Card", that lured

investors with a return of 27% annually.

Term of the Month

Corporate Jokes

Page 4SBES ASTUTE, AUG, 2014

Staff’s Birth Days

Prof. Alam Hussain Aug 15

Prof. Bharti Vinode Aug 15

Student’s Birth Days27th Aug Gaurav Wank-

hade15th Aug Akash Porwal31st Aug Vishal Debnath31st Aug Swapnil

Dekatey12th Aug Ramchandra

Sharma

*MERI MUMMA*

Ek roj jo tujh bin maine bitaya,

Kya hai teri importence mai tab samjh paya,

Tujh bin subha kuch adhuri si hoti hai,

Har subh teri awaj alarm se jruri hoti hai,

Bin tere rotiyo ke mera break-fast nhi hota,

Ho jati hai body slow koi kam fast nai hota,

Bag,Purse or Mobile to tuhi yad dilati hai,

Jab nhi hota poket me hanki to teri badi yaad aati hai,

Jab ho di se argument ya ho bro Se fight,

Who cares about it mamma u r always in my side,

Meri limited poket money ka tumhi to bas ek sahara ho,

Izzat ki dubti taitenic ko provide krti kinara ho,

Mamma tum ho meri wiki, google, or gmail,

With you ye ghar hai heven without you its just like hell,

Tum jo the far mujhe, ye zindagi ho gai thi bekar,

Plz mummy try to undrstand me,

dubara na krna mujh par aisa

Atyachar....!!!!!

Vinod Chaturvedi

IIMS, Pune

Div.—B

Sem I

Poem

Page 5Volume - IV Issue - 2

Upcoming

Union Finance Minister, Arun Jaitley on 10 July 2014 presented Union Budget 2014-15

Within six (6) weeks of power Union finance Minister Mr. Arun jaitley had presented maiden Budget of BJP led Government. We can easily call it “DIRECTIONAL Budget “, which is showing the will and intention of newly formed Government. Mr Jaitley commented, “We have no option but to take some bold steps to spurt economy; these are only the first steps and are directional.” Union Budget 2014-15: Every taxpayer gains Rs 416 per month. Every taxpayer gains Rs 416 per month or Rs 4,992 per year. MAJOR HIGHLIGHTS INCLUDE-

Personal income tax limit for individuals aged below 60 years raised to Rs 2.5 lakhDeduction limit under section 80 C raised to Rs 1.5 lakhExcise duty on cigarettes raised in range of 11-72 per centAnnual PPF ceiling hiked to Rs 1.5 lakhHome loan interest exemption hiked to Rs 2 lakhNo tax for income up to Rs 3 lakh for senior citizensLCDs, LED TVs to get cheaperService tax imposed on AC bus travelReadymade clothes, cosmetics get dearerSolar lamps to get cheaperAdditional excise duty of 5

per cent on aerated drinks

Excise duty on footwear re-duced

No custom duty on CRT TVWage ceiling for EPFO

hiked to Rs 15,000 crTax saving of Rs 5,000 after

PPF ceiling hikeSmall savings instrument for

girlchildNew sops for infra loans

Seven industrial smart cities to be set up

Union government decided to appoint Suresh Prabhu Committee to review gas pricing formula

Union government on 24 July 2014 decided to appoint Suresh Prabhu Committee to review the

gas pricing formula. Suresh Prabhu is a former Union Power Minister under National Democratic

Alliance (NDA) government led by Atal Bihari Vajpayee.The other members of the Committee will

be Pratap Bhanu Mehta, President and Chief Executive of Centre for Policy Research and Bibek

Debroy of the same institute

Page 6SBES ASTUTE, AUG, 2014

RBI cancelled Certificate of Registration of six NBFCsThe Reserve Bank of India (RBI) on 28 July 2014 cancelled the certificate of registration of six non-banking financial company (NBFCs). With this cancellation, these six NBFCs based in Delhi would not be able to con-duct business of non-banking financial institution.

These six non-banking financial company (NBFCs) whose cancellation of registration certificate has been issued are • GE Strategic Investments India (GESII) • Profound Exports Private Limited• Two Brothers Holding Limited• Swank Services Private Limited• Praxis Consulting and Information Services Private Limited• Credible Microfinance Ltd. (formerly known as "Credible Securities & Finance Pvt. Ltd.")

Page 7Volume - IV Issue - 2

Amitabh Bachchan named as Maharashtra's horticulture ambassador

Amitabh Bachchan, the Indian Megastar on 28 July 2014 was appointed as the horticulture am-

bassador of Maharashtra. With this appointment, he will start promoting the horticulture sector in

Maharashtra. Maharashtra, the western Indian state is India's largest fruit producing state with

around two million hectares area covered in fruit orchards. The 71-year-old actor is also the face

of Gujarat tourism as well as the polio eradication campaign.

Prime Minister launched web platform MyGov to get citizens' ideas for governancePrime Minister of India, Narendra Modi on 26 July 2014 launched a web platform – My-Gov.nic.in. The platform has been created to facilitate Citizen Engagement in Good Govern-ance.

MyGov will enable the citizens especially the youth to volunteer for specific tasks and projects at grassroots level. It will allow the common people to reach the government with ideas and sug-gestions.

India decided against signing WTO's Trade Facilitation Agreement

India on 24 July 2014 decided against signing Trade Facilitation Agreement (TFA) of the World

Trade Organisation (WTO). The decision was taken at the meeting of the General Council of the

160-member WTO Geneva, Switzerland.

The decision of India to not sign the TFA protocol was taken in the backdrop of Narendra Modi

government’s stand that India will not agree to a critical trade pact of WTO until India’s food se-

curity concerns are addressed.

TCS became first Indian Company to achieve Market Capitalization of 5 lakh crore rupees

Tata Consultancy Services (TCS) on 23 July 2014 became the first Indian company to achieve a

market capitalization of 5 lakh crore rupees. This feat was achieved by the company on the back

of Quarter 1 results.

In terms of market capitalisation, TCS is followed by Oil and Natural Gas Corporation (ONGC) at

3.5 lakh crore rupees and Reliance Industries at 3.3 lakh crore rupees

Page 8SBES ASTUTE, AUG, 2014

Google announced to launch Hindi version of Google Maps on Android and PCInternet search engine giant Google on 22 July 2014 announced to launch its Hindi version of Google Maps.

The Hindi language service will be available both on Android and Desktop platforms, and not on Apple's iOS

format. On Android, a user can use Google Maps only he/she has Android version 4.3 (Jelly Bean) and up-

wards.

Union Government proposed to set up three Low Cost Airports for Bihar

Union Minister of State for Civil Aviation, G.M. Siddeshwara on 22 July 2014 proposed to set up

three new low-cost airports in Bihar at Muzaffarpur, Raxaul and Gaya. While Gaya will is an op-

erational custom airport, Raxaul will be a non-operational airport.

The development of airports would depends upon availability of land, availability of mandatory

clearances, environmental clearances, traffic projections, and provision of support services by

the State Government. The support services include access road to the airport, water supply,

power supply, services of State Police and State Fire Staff.

Indian tennis star Sania Mirza appointed as Brand Ambassador of Telangana

Indian tennis star Sania Mirza was appointment as Brand Ambassador of Telangana on 22

July 2014. Sania Mirza will promote the new state’s interests in India and abroad.

The letter of appointment and a cheque of one crore rupees was handed over to Sania Mirza

by the Chief Minister of Telangana K Chandrasekhar Rao in Hyderabad.

Delhi Budget 2014-15 Union Finance Minister Arun Jaitley on 18 July 2014 presented Delhi’s Budget 2014-15 of 36776 crore rupees in Parliament. He presented the budget as the legislative assembly of Delhi has been kept under suspended animation because of imposition of President Rule.In the proposed budget, the Union Finance Minister proposed no new taxes. Of the total pro-posed budget of 36766 crore rupees, 19066 crore rupees is non-plan expenditure.

Page 9Volume - IV Issue - 2

Narendra Modi visited Brazil to attend 6th BRICS Summit

Prime Minister of India Narendra Modi visited Brazil to attend the 6th BRICS Summit in For-taleza, Brazil form 15 July to 16 July 2014. BRICS group includes Brazil, Russia, India, China and South Africa.

During the visit, many decisions were taken and on the sidelines of the summit, the Prime Minister also met with other leaders of BRICS nation

BRICS to create 100 billion dollar development bank and emergency reserve fund

BRICS nations on 15 July 2014 signed a deal to create a new 100 billion

US dollar development bank and emergency reserve fund. The deal to

from the bank was signed during the 6th BRICS Summit being held in

Fortaleza, Brazil form 15 July to 16 July 2014. BRICS group includes

Brazil, Russia, India, China and South Africa.Creation of the bank was

announced after a plenary meet at a BRICS summit meet by Brazil’s

President, Dilma Rousseff.

SEBI barred Satyam founder Ramalinga Raju and 4 others from accessing capital mar-kets

The Securities and Exchange Board of India (SEBI) on 15 July 2014 barred founder of Satyam Computers, B

Ramalinga Raju and four other top executives from accessing the capital markets for 14 years. Apart from

this, the market watchdog also ordered the top five executives of Satyam to pay 1849 crore rupees because

they made unlawful gains through sale of shares. The amount has to be paid within 45 days. In its order

SEBI also said that the amount must be deposited along with 1200 crore rupees as interest due from January

2009 till date. It means that with extra 1200 crore rupees (which is 12 percent simple interest), the five execu-

tives will have to pay at least 3049 crore rupees to SEBI.

SC ordered Union Government to bring MGNREGS's wage rates on par with minimum wages

Supreme Court ordered Union government to bring wages under Mahatma Gandhi National Rural Employ-

ment Guarantee Scheme (MGNREGS) on par with minimum wages existing under different States. The or-

der was passed by the SC on 11 July 2014.

The decision was given by the SC bench of Justice S J Mukhopadhaya and Justice S A Bobde. The bench

directed that wage under the scheme cannot be less than the minimum wage fixed by the State government

for agricultural labourers. The bench also asked the Union government to pay arrears to workers who had

been paid less.

Page 10SBES ASTUTE, AUG, 2014

Germany won the 2014 FIFA Football World Cup beating Argentina 1-0

Germany on 13 July 2014 became the 2014 FIFA World Cup champion after defeating Argentina 1-0 at the

Maracana in Rio de Janeiro, Brazil. The single goal of the final was made by Mario Gotze during the extra-

time. With this win, Germany lifted the trophy for the fourth time in the history of FIFA world Cup and first

since 1990. The previous title was won by Germany in 1954, 1974 and 1990. Brazil with 5 wins is the country

that leads the winning record. Germany also became the first European team to win a World Cup played in

North or South America.

India successfully test-fired BrahMos supersonic cruise missile

India on 8 July 2014 successfully test-fired an advanced version of the 290-km range BrahMos supersonic

cruise missile from Chandipur-on-Sea off

Odisha coast. It was test-fired from a mobile

launcher from launch complex number three

of the Integrated Test Range (ITR),

Balasore. BrahMos has been inducted into

the Army and Navy, while, the Air Force is in

final stages of trial. The induction of the first

version of BrahMos Weapon Complex (N1)

in the Indian Navy commenced from 2005

with the missile being deployed on-board

warship INS Rajput (the first ship with the

missile).

SBES EVENTS - July, 2014

Page 11Volume - IV Issue - 2

Campus NewsSBES welcomed 2014 batch of PGDM students with an inauguration function on 1st July.

The occasion was graced with the presence of chief Guest Mr. Florian Wedler, General Manager- Controlling and Strategic Projects Sales Organisation and Plant, Mercedes-Bens India Private Limited. Guest of Honour Mr. Kayomarz Dhotiwalla, Vice President-Good & Green at Godrej consumer products Ltd. and Prof. Manish R. Mundada Execu-tive Director and Founder President SBES.

A two weeks Induction program was organized for the batch of 2014 PGDM students start-ing form 1st July to 13th July. During the period students were made familiar with the field of management with the help of various management games role plays and extem-pore etc .

PGDM Students were taken to an out-bond Management Training program to Durshet, were students learned various skills like team building and group cohesiveness etc.

Students presented their gratitude and love towards their teachers on the occasion of Guru Poornima. On the occasion students performed various cultural programmes as well .

As a CSR Initiative under the Rotract club of SBES, students of PGDM visited “Navkshitij” (a school for especially abled students) and distributed sweets and fruits to them.

A Basket Boll court’s bhumi puja was performed on the SBIIMS ground. There are plans to construct the court at the earliest to promote sports activities among the students. On the occasion tree plantation was also done by the students.

To make students familiar with the industrial setups, Students of Retail specialisation batch was taken to the PIAGGIO plant in Pune. Students learned the working of the plant and also interacted with the staff of the plant for the better understanding.

SBES welcomed Mr. Amit Dubey who joined the institute as a faculty.

Rotract Club took a poster making activity, where the students got a chance to present their views in form of posters, about the real world.

Under the Rotract Club CSR initiative, Students of PGDM visited “Zilla Parishad School”. Students of SBES interacted with the school students and distributed the needed things

Durshet—Adventure Trip