In order to rationalise the entertainment tax levied on the direct-to-home (DTH) companies and the cable operators by the state governments and also to encourage the cable industry to switch to the use of advanced optical fibre cable instead of the copper wire cables, the Ministry of Information and Broadcasting has set up two sub-committees.
While one committee will look at the rationalisation of entertainment tax levied on the broadcasting sector, including the DTH and cable companies, the other will look at the rationalisation of ‘right of way’ charges levied by the state governments and the local municipal bodies.
The right of way charges are levied for laying underground cables and also for putting up wires on electricity poles. Currently, depending on the city, the average right-of-way charges for laying underground cables is Rs 2,50,000-Rs 3,00,000 per km.
The entertainment tax on DTH companies ranges between 15 per cent and 45 per cent. Currently, the tax element of DTH companies goes up as high as 56 per cent per subscriber and includes service tax, entertainment tax, value added tax and licence fee.
The entertainment tax sub-committee will have representations from broadcast regulator Trai, entertainment tax commissioners of the states of Tamil Nadu, Maharashtra, Delhi, Madhya Pradesh, West Bengal and Rajasthan along with representatives from the cable and DTH companies.
Another 11-member sub-committee will look into the rationalisation of ‘right of way’ charges levied by the state governments and the local municipal bodies.
Welcoming the move, A Mohan, executive vice-president, regulatory affairs of Essel Group, said: “It has been long overdue. We feel this move is a step in the right direction that will go a long way in making both cable and DTH services affordable to the consumers.”
Mohan is also the vice-president of MSO Alliance, the apex body of all large cable distributing companies.
Currently, the cable industry reaches about 76 million homes in the country, while the DTH companies like Dish TV and Tata Sky have nearly 5 million subscribers between them.
Understanding Short Term Trading
Before I begin, this blog is not for intraday traders. My definition of short term implies duration of around 2 to 3 months.
Short Term stock picking is no rocket science, but rather a visual interpretation of technical charts. A basic moving average on a time frame chart will show the direction of the securities movement.
Moving averages is a mathematical results calculated by averaging a number of past data points. Moving averages (MA) in it's basic form is calculated by taking the arithmetic mean of a given set of values on a rolling window of timeframe. Once the value of MA has been calculated, they are plotted onto a chart and then connected to create a moving average line. Typical moving averages used for short term trading are 50 MA and 100 MA.
Types of Moving Averages
1) Simple Moving Average (SMA)
SMA is calculated by taking the arithmetic mean of a given set of values on a rolling window of timeframe. The usefulness of the SMA is limited because each point in the data series is weighted the same, regardless of where it occurs in the sequence. Critics argue that the most recent data is more significant than the older data and should have a greater influence on the final result.
2) Exponential Moving Average (EMA)
EMA overcomes the limits of SMA, where more weight is given to the recent prices in an attempt to make it more responsive to new information. When calculating the first point of the EMA, we may notice that there is no value available to use as the previous EMA. This small problem can be solved by starting the calculation with a simple moving average and continuing on with calculating the EMA.
The primary functions of a moving average is to identify trends and reversals, measure the strength of an asset's momentum and determine potential areas where an asset will find support or resistance. Moving averages are lagging indicator, which means they do not predict new trend, but confirm trends once they have been established.
A stock is deemed to be in an uptrend when the price is above a moving average and the average is sloping upward. Conversely, a trader will use a price below a downward sloping average to confirm a downtrend. Many traders will only consider holding a long position in an asset when the price is trading above a moving average.
In general, short-term momentum can be gauged by looking at moving averages that focus on time periods of 50 days or less. Looking at moving averages that are created with a period of 50 to 100 days is generally regarded as a good measure of medium-term momentum. Finally, any moving average that uses 100 days or more in the calculation can be used as a measure of long-term momentum.
Support, resistence and stoploss can be infered by referring the closet MA below or above the market price. The other factor that is used in short term momentum is the trading volume. The moving averages along with the trading volume can provide a better insight to short term movement.
Markets are moved by their largest participants - I believe this is the single most important principle in short-term trading. Accordingly, I track the presence of large traders by determining how much volume is in the market and how that compares to average. Because volume correlates very highly with volatility, the market's relative volume helps you determine the amount of movement likely at any given time frame--and it helps you handicap the odds of trending vs. remaining slow and range bound.
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