Mindtech Ltd- Rs.45/-

Above are the weekly charts of Mindtech limited, it has been consolidating at these levels for last six months. The first chart is the long term chart, it can be clearly seen that the stock has formed a triangle from 1999 onwards and it seems to have completed the pattern and broke above the sloping trend line for last 14 years and that too on volumes, which is a bullish signal as far as technicals are considered. it has been consolidating at these levels. it has broken above the sloping trend line for last 14 years moved above came down and touched the trend line and then started to move up on huge volumes, its a perfect technical setup with bullish alternative. The stock has been consolidating at these levels for last six months, look at the volumes over these period which are very huge which is a clear indicating that the informed buyers are buying into the stocks and we might see the stock  breaking above and we can expect the stock moving substantially from these levels. The long term technical break out of 14 years clearly indicates that we might see an all time high which happens to be above 500 levels. If we apply the triangle patter implications, the break out would be equal ant to the longest leg of the triangle which is 490, the break out is at 25 levels which points that we can easily see the stock moving towards 500 level which is 10 times from current levels. But safe case always stop loss below 25 levels to protect our capital.

M.Mahiidar

Enjoying Life

Trend is Friend.

We bought forward our long and today market started to move up and formed a higher pivot low prompting us to shift SAR to its low at 15650 levels. towards the end of the day BNF closed above it and we carried forwards our longs. This Thursday being settlement day at the end of the day last 5 minutes we should close current series future and take the next series position. So at the end of the day we shift our position to next series. In the next series the SAR is at (15755-23) so SAR is at 15732.

M.Mahiidar

Enjoying Life

Trend is Friend.

yesterday we carried forwards one long, today bank nifty opened gap down in our favor and then started to move u and then during afternoon has fallen below the opening low with PH at 15601(SAR), and late in the afternoon market reversed and started to move up and move above our SAR and we reversed our position to long. Bank Nifty has moved up and closed virtually at the high of the day signalling the strength of the bulls. today at the close we carried forward the longs with SAR at low of the day at 15511.

M.Mahiidar

Enjoying Life

Trend is Friend.

Today market opened flat and as the day progressed nifty showed strength and made an all time high again. We have shifted SAR(blue lines moving up).SAR is put at the nearest pivot lows. later in the day market reversed suddenly hit our SAR at 15801, we shorted when it moved below 15777(15801-23(filter)). At end of the day we are carrying forward our short with SAR at 15959. In the last trade we made a profit of 276 points. Total profit made in the total uptrend we made a Profit of 710 points.

M.Mahiidar

Enjoying Life

Trend is Friend

We have had our SAR at 15500, so SAR works out to 15477( considering a filter of 23). the market moved below it and we reversed our position to short. whole during the day the market did not move any where and closed at 15501 which was above our SAR  which triggered short(15500). So we have to go long again the the end of the Day with SAR at the low of the day.

Positions carried - Long in with SAR at 15450

Status of profit or loss.

Long Position - Made a profit of 434 points and loss on short position - 23 Points.

This is know as EOD reversal:- We reverse our positions to short in SAR being triggered. But at EOD market move above the point which triggered our short and closes above it, so at the end of the DAY we reverse out position to LONG. this is applied because the bears have failed to take the market below and have been successful in taking the market above the point which triggered our short. This is taken only on day on which fresh position is taken not on other day.

M.Mahiidar

Enjoying Life

Trend is Friend.

The flow technique works on only one principle, be with the trend or properly put Flow with the trend. The basic technique in indicated in the above chart. the market moves in waves if the each successive PH is higher then we are in up trend and if success PH are lower then we are in down trend.

We are in an uptrend or we are long and the market moves in series of higher PH and PL we hold on to longs till this sequence is maintained once the PL is taken out we close our long positions or go short. So we wait for the PL to be taken out in an uptrend to reverse/close our position. SAR always is at the PL.

We are in a down trend or we are Short and the market moves in series of Lower PH and PL we hold on to shorts till this sequence is maintained once the PH is taken out we close our short positions or go short. So we wait for the PH to be taken out in a down trend to reverse/close our position. SAR is always at PH.

PH- Pivot High , PL- Pivot Low, SAR- Stop and Reverse

M.Mahiidar

Enjoying Life

Trend is Friend.

BNF has hit the SAR(Stop and Reverse) at 15500, we put a filter of 23 points so our SAR is at 15477 as BNF moved below it, We reverse our position, we close our long position and take short position at 15477 with SAR at all time high 15640/-.

M.Mahiidar

Enjoying Life

Trend is Friend.

Today market opened gap up in our favor, as the market moved up we have just changed the SAR(stop and Reverse) to up as the pivot has formed there.currently the SAR is at 15500, resulting in a total gain of 457 points at SAR. at the end of day we are carrying our long position with SAR at 15500. meaning we close our position and go short if bnf move below 15500.

M.Mahiidar

Enjoying Life

Trend is Friend.

The flow technique i follow is a trading method which i implement in Bank Nifty future. It can be applied to any other index or also stocks but it should be applied irrespective of the state of the market or the expected state of the market. The method uses 30 min time frame, can be applied to any time frame. I apply and trade in 30 min time frame in BNF mostrly in BNF only i which its comfortable for me. I have applied in Nifty also and it worked as accurately as it applied in BNF. We apply to it in 30 min time frame and we are always in trade irrespective of state of trade. If we are long, and the system gives a sell signal we close our long position and take short position and vice versa. So we are always in trade that is the first rule. other rules of trade i would furnish daily and when ever its required over a period of time i would furnish all the rules.

M.Mahiidar

Enjoying Life

Trend is Friend.

From today onwards i would furnish the flow trading method which i use for trading, this method i would explain slowly, as the time come with rules as and when they occur i would explain in brief about the method tomorrow. As per the system we should be long at 15043( including the filter of 23) and we progressively change the SAR( Stop And Reverse) to the latest low(Piovot Low) as the price moves in our direction. so currently the SAR is at 15401(with filter of 23 it comes to 15387). Currently we are in for a total gain of 410 Points. I would also furnish monthly what is the total gain in points monthly from now onwards.  I would also try to update when Ever the SAR changes or position is reversed. Over a period of time i would update all the rules and all the rules of trade would be consolidated under separate labels for the benefit of all.

M.Mahiidar
Trend is Friend.
Enjoying Life

USDINR-61.08

USDINR has moved above 200 day EMA, after nearly five months. The movement above 200 day EMA is bullish for USD and we can expect the INR to depreciate in the coming weeks.Rupee has been finding resistance at the sloping trend line indicated by three blue arrows in the above chart three time in last six months. Now also it has retraced from that but the retracement is not so harsh indicating that we might start the up move once this down trend or slight correction is over. Rupee has been finding resistance at the sloping trend line blue line for last six months three times in last six months(indicated by blue arrows). Once this trend line is taken out we can expect a healthy movement in USD towards an all time high. will it go there it appears to be so till it maintains above 200 day EMA. So we have to wait patiently for the price to move above the trend line.

M.Mahiidar

Enjoying Life

Trend is Friend.

Weekly technical Analysis for week ended 8^th August 2014

Nifty has been falling whole during week and has closed at the lowest point of the week. During the week nifty opened at 7639 made a weekly high of 7752 and closed at 7568 which is near the weekly low of 7540. The close at the lowest point of the week is an indication that the bears have been successful in keeping the market down and has won over bulls. Also during the week nifty has tried to move above 20 day EMA taken resistance at it and there after started to fall from there this appears to be a perfect technical set up and can expect the market to move down even though we might has small bounces on upside. So till it moves above 20 day EMA which happens to be at 7669 we can expect the market to move down to make new lows in the coming weeks. As of now we can expect the trend to turn up on movement above 7752 or close above it. So till these levels are not broken we can surely expect the market to slowly drift down wards. As nifty has moved below20 day EMA we can expect to move towards 50 day EMA which happens to be at 7496 and if that is taken out we can expect to move towards 100 day EMA which happens to be at 7263. So till the 20 day EMA is taken out we can expect these levels to become realty.

Nifty has broken the sloping trend line drawn connecting the lows from 30^th May 2014, indicating weakness, it has broken the trend line with a gap down which is further indicating of weakness and we can expect the market to move to the lows of may 30 which happens to be around 7100 levels.

As per elliotte wave it appears that we might has completed a five wave up move from the low of February 2014 and we might have chances of seeing bigger correction which we have not seen in last six months. The market has retraced at least 23.60% previously so we can expect a minimum retracement of towards those levels which happens to be 7394 if this is taken out we can expect it to move towards the next Fibonacci of 7116. So these levels are to be closely watched as market has all chances of taking support at these levels.

The Elliott wave analysis of entire up move I would try to furnish in the coming week.

M.Mahiidar

Enjoying Life

Trend is Friend