TFC-The Finance Club|IIM Kashipur

The Finance Club is one of the pioneer academic clubs initiated towards enhancing knowledge in the field of finance through innovative activities such as events, hands-on workshops, knowledge sharing sessions, and guest lectures from industry experts.

The club organizes innovative events throughout the year to enhance the knowledge of finance among the student community in various concepts such as trading, risk management, and investment strategies. BullsEye, a virtual simulation game that was conducted online recently saw overwhelming participation where students had an experience closer to real-time trading. Accrual Madness, Trade Wiz, Aestimatus, Open Outcry, The Simulation Challenge, High Stakes were some of the events conducted over the past year where students from various top business schools actively participated and gained exposure to various financial concepts such as risk management, portfolio management, fund allocation, etc.

TFC believes in practical application of financial knowledge and hence, Pragati, IIM Kashipur’s student-run investment fund was set up during October 2019 to foster investment knowledge among the student community. The fund was set up with the objective to provide investors with an opportunity for long-term capital appreciation by investing in a diversified portfolio comprising large and MidCap Securities. Students and alumni of the institution have actively participated in the fund by investing through multiple fund-raising windows and gained knowledge of its working. The fund is managed by the members of the club under the guidance of Prof. Dilip Kumar and has consistently outperformed its benchmark index Nifty 50 since its launch. Members of the club are actively involved in carrying out market research, portfolio tracking, and publishing monthly factsheets on the fund’s performance. The setup of the fund helped in real-time tracking of the securities market for the club members and other student’s investors during the challenging times of the pandemic which helped in formulating and analyzing various investment strategies to effectively monitor the risk volatility and performance of the portfolio.

The club published articles and newsletters regularly on current financial events through Vit Pratiti and The Financial Gazette. The club has started to post a new series of articles and content related to the working of various financial instruments and analysis of individual companies and conglomerates on social media in order to collaborate and share knowledge with the external community

Recently, the Club has partnered with StockGro, a mobile application for virtual trading and investing where students from leading b-schools get real-time experience in trading and portfolio management. Over 200+ students actively registered and participated in daily contests which helped them to stay updated with the current trends in the stock markets

The Finance Club conducts a number of knowledge-sharing sessions throughout the academic year. A variety of topics such as personal finance, investment, and trading strategies are discussed over a series of sessions which enhances the knowledge of working of stock markets and trading. Special sessions were also held on the discussion on Annual Budget 2019 and its special features which saw participation from more than 100 students.

The club hosted Coalescence – The Finance Summit in association with the academic forum to bridge the industry-university gap. Rakesh Singhania, CFO of Wells Fargo Bank, India, participated as a keynote speaker and shared his experience on how industries navigated adversity in the new era of the post-pandemic. The lecture was attended by over 100 student participants who had an opportunity to interact and gain insights on challenges faced by the financial markets. The club also hosted Money Matters, a guest lecture session in the presence of Prof. Dilip Kumar on discussing various investment-related topics concerning Pragati. The club also aided the students in preparing for competitive examinations by participating in FLIP National Challenge and CFA Research Challenge.

In this way, the club ensures that students get the essence of finance as a domain of management. It helps the students to learn about the scope in this domain and select the best course of action for their future choices. In nutshell, The Finance club fosters a culture for finance within the realms of IIM Kashipur.

Manthan – The annual Finance Summit

Kashipur- 17th January, 2015: Manthan- the annual finance summit was hosted by IIM Kashipur on 17th January, 2015. This year the themes were “High frequency trading- regulation and challenges, growth challenges in BSE, Valuation of e-retail learning and risk management for 21st century”. The bigwigs of the industry graced the campus with their presence so as to share their experiences in the market. The speakers of the occasion were

1. Ms. Rana Usman, Sr. Asst. Vice President, National Stock Exchange

2. Mr. Nayan Mehta, Chief Financial Officer, Bombay Stock Exchange

3. Mr. Anuj Jain, Associate Director, Ernst & Young

4. Mr. Alpesh Porwal, Sr. Vice President & Head- Retail SBI Capital Securities Ltd.

5. Mr. Mohit Kabra, Chief Financial Officer, MakeMyTrip

6. Mr. Satish Kottakota, Chief Financial Officer, Call Health Services Pvt. Ltd.

The event started with the lighting of the lamp by the guests. Thereafter the event kick started with Ms. Rana Usman’s keynote speech and a presentation on ‘Use of algorithms in high frequency trading’. The second keynote speaker for the day was Mr. Nayan Mehta. His young and enthusiastic demeanor was welcomed by the students; he further elaborated the challenges in handling one of the oldest stock exchanges in the world; BSE. Thereafter there was a panel discussion involving Mr. Anuj Jain, Mr. Satish Kottakota, Mr. Alpesh Porwal with Prof. K.N. Badhani of IIM Kashipur as the moderator. The topic of the discussion was “Risk management for 21st century managers”. During the discussion, the panel discussed the growing significance of the understanding of risk profiles of various securities for managers. Finally,there was a keynote speech by Mr. Mohit Kabra (CFO, Makemytrip) who is seen as the posterboy of India’s new age entrepreneurship. He shared his enormous experience in the industry while he was working with companies like PepsiCo, Colgate and Kohler amongst many others. He talked about the sustainability of e-commerce valuation of retail learnings. The event concluded with a vote of thanks by Prof. Kunal of IIM Kashipur.

Candlestick Charting

IIM Kashipur, PGP ’11 student, Varun Agarwal,  A finance enthusiast shares his insight on Candlestick Charting

In the 17^th century, the Japanese developed a method of technical analysis to analyse the price of rice contracts. This technique is called candlestick charting. Steven Nison is credited with popularizing candlestick charting and has become recognized as the leading expert on their interpretation.

Candlestick charts display the open, high, low, and closing prices in a format similar to a modern-day bar-chart, but in a manner that extenuates the relationship between the opening and closing prices. Candlestick charts are simply a new way of looking at prices, they don’t involve any calculations.

Each candlestick represents one period (e.g., day) of data. The figure below displays the elements of a candlestick.

The interpretation of candlestick charts is based primarily on patterns. The patterns are examined in three main groups as “Bullish”, “Bearish”, and “Neutral”. These groups are further subdivided with respect to the type of the patterns as “Reversal”, “Continuation”, and with respect to their reliability as “High Reliability”, “Medium Reliability” and “Low Reliability”

Candlestick charts are flexible, because candlestick charts can be used alone or in combination with other technical analysis techniques. A significant advantage attributed to candlestick charting techniques is that these techniques can be used in addition to, not instead of, other technical tools. In fact this system is superior to other technical tools. Candlestick charting techniques provide an extra dimension of analysis. As with all charting methods, candlestick chart patterns are subject to interpretation by the user.

Examples

BULLISH MORNING STAR

Type: Reversal

Relevance: Bullish

Prior Trend: Bearish

Definition

This is a three-candlestick formation that signals a major bottom. It is composed of a first long black body, a second small real body, white or black, gapping lower to form a star. These two candlesticks define a basic star pattern. The third is a white candlestick that closes well into the first session’s black real body. Third candlestick shows that the market turned bullish now.

Recognition Criteria:

• Market is characterized by downtrend.
• We see a long black candlestick in the first day.
• Then we see a small body on the second day gapping in the direction of the previous downtrend.
• Finally we see a white candlestick on the third day.

Explanation:

We see the black body in a falling market suggesting that the bears are in command. Then a small real body appears implying the incapacity of sellers to drive the market lower. The strong white body of third day proves that bulls have taken over. An ideal Bullish Morning Star Pattern preferably has a gap before and after the middle candlestick. The second gap is rare, but lack of it does not take away from the power of this formation.

Important Factors:

• The stars may be more than one, two or even three.
• The colour of the star and its gaps are not important.
• The reliability of this pattern is very high, but still a confirmation in the form of a white candlestick with a higher close or a gap-up is suggested.

BULLISH RISING THREE METHODS

Type: Continuation

Relevance: Bullish

Prior Trend: Bullish

Definition:

The pattern is characterized by a long white candlestick followed by three small bodies in three consecutive days. The small bodies represent some resistance to previous uptrend and they may even trace a short downtrend. These three reaction days usually have black candlesticks but the bodies remain within the high and low range of the first day’s white candlestick. The pattern is completed by a white candlestick on the fifth day, opening above the close of the previous day and closing at a new high. The small downtrend between the two long white candlesticks represents a break during the uptrend. The upward trend then resumes and continues.

Recognition Criteria:

• Market is characterized by uptrend.
• We see a long white candlestick in the first day.
• Then we see small real bodies defining a brief downtrend but staying within the range of the first day on the second, third and fourth days.
• Finally we see a long white candlestick on the fifth day opening above the close of the previous day and also closing at a new high.

Explanation:

The Bullish Rising Three Methods Pattern typically represents a rest in the market action. This may be used to add new positions by longs. The pattern is the reflection of doubts about the ability of the trend to continue. This doubt may increase because of small-range reaction days. However, given the fact that a new low cannot be made, the bullishness is resumed and new highs are set quickly.

Important Factors:

• The high-low range includes the shadows.
• The reliability of this pattern is very high, but a confirmation in the form of a white candlestick with a higher close or a gap-up still is suggested.