Seven Cures For a Lean Purse

Down through the ages Babylon's reputation comes to us as the richest of cities, its treasures as fabulous. Yet it was not always so. The riches of Babylon were the results of the wisdom of its people. They first had to learn how to become wealthy.
When the Good King, Sargon, returned to Babylon after defeating his enemies, the Elamites, he was confronted with a serious situation. The Royal Chancellor explained it to the King thus:

"After many years of great prosperity brought to our people because your majesty built the great irrigation canals and the mighty temples of the Gods, now that these works are completed the people seem unable to support themselves.The laborers are without employment. The merchants have few customers. The farmers are unable to sell their produce. The people have not enough gold to buy food."

"But where has all the gold gone that we spent for these great improvements?" demanded the King.

"It has found its way, I fear," responded the Chancellor, "into the possession of a few very rich men of our city. It filtered through the fingers of most of our people as quickly as the goat's milk goes through the strainer. Now that the stream of gold has ceased to flow, most of our people have nothing to show for their earnings."

The King was thoughtful for some time. Then he asked, "Why should so few men be able to acquire all the gold?"

Nifty Intraday Update-I

Nifty PreMarket View

Nifty's complex correction is unresolved..

Nifty Intraday Update-III

Nifty Intraday Update-II

Nifty Intraday Update-I

Nifty PreMarket View

There are cluster of resistances(1st) around 5365-80 zone-21Hr sma/34Hr Sma/5DEma.
By closing above LEmas, trading action come into play.
Above the 1st Res..comes 5405-5415 zone. And then the 5427-80% of last fall beyond which some more upsides.
5320-30 is the floor line/ support presently which will be raised as the day progresses.
Do not discuss JNSAR..it is just a number. (You could choose your own & still do wonders with a strong belief). I'm just keeping the mystery intact for those "less confident/ conviction trader" to follow it blindly.
Don't spoil their belief. If it gives them money, it is their GOD.
Please do not discuss JNSAR...I mean it.

Nifty range contracts with low vol. in its "b" of "B"..

Nifty shows two 50:50 scenarios:
1. "b" of "B" almost done and the "c"(upmove) unfolds tomorrow.
2. "B" Wave completed at 5459; 1 & 2 got completed with an irregular correction which portends sharp falls.

Nifty Intraday Update-III

Nifty Intraday Update-II

Nifty Intraday Update-I

Nifty PreMarket View

5DEma & Pivot & 34HrSma-5400 being at the centre, 21 HrSma as support-5362, some decisive moves may be seen beyond these boundaries.
80% retrace of yesterday's fall comes @ 5438, likely JNSAR of Friday.

Below 5362 & 5352, it would be trading below DLEma & HLEmas...
The corrections have got just complicated.

Nifty's attempt at a bounce met with selling at higher levels..still in trading mode.

Nifty Intraday Update-III

Nifty Intraday Update-II

Nifty Intraday Update-I

Nifty PreMarket View

Staying above 5354-WEma, Nifty is poised to continue its corrective upmove towards 34Hr Sma and to WHEma. Any intraday weakness would develop around that zone only. If that resistance is cleared, then 5484++ is the next hurdle.(5449-50%;5492-61.8% of 5630 to 5268)
Aggressive traders may use 21Hr sma for strength for the day.
Being the last day of the month, "5401-defending" may come into play.

Nifty closes above all Low Emas for a "pause"...

Nifty Intraday Update-III

Nifty Intraday Update-II

Nifty Intraday Update-I

Nifty PreMarket View

First sign of "intraday strength" is a move above HLEma:5302, followed by Day Pivot:5332.

Having broken below earlier consolidation support @ 5352-92, it reached the next consolidation cluster @ 5250-5288 zone.(5358:50%; 5379:61.8% of yesterday's fall)

If holds above this zone of 5250-5288, it would attempt to move past 5352-92(WEma:5354; MHEma:5406).

As repeated earlier, close above LEma would signal a pause in the correction.

Nifty, closing below 20sma, heading to 200sma...

Nifty Intraday Update-II

Nifty Intraday Update-I

Nifty PreMarket View

A normal correction would pause around 20sma-5385-5395 zone, makes a bounce/ retracing moves and continue the correction, the depth of which would be known based on the retracing move.
If no new low is made in the opening session, retracing is on.
If pivot,5452, is surpassed, larger retracing is on.
Corrections have many faces. When clarity is there, trading is fun and rewarding.
And when clarity is less, seek refugee in the "support/ resistances" and take action based on intra TA with small SL.
The last consolidating zone @ 5352-92 is the support zone & 20 Sma-5395.
Similarly the last distributing zone is 5484-5521 & Wk.Pivot @ 5488.
Query of a reader: Right now what i am seeing is that weekly is giving a sell in most of the stocks and nifty. Along that there is a probability that after a day or so stocs will give a buy on daily time frame but may remain in sell mode on weekly. In your experience how have the markets behaved under such conditions... Are they good for positional trades on daily time frame?
Answer:Week TA is in OB zone for 2 weeks and index momentum too has shown slowing down. This coupled with Day TA developing -ve div @ OB zone has led to the current fall.
If we see a +ve div at OS zone in Hour TA would be a reliable signal for playing longs.
TT has clearly shown "loss of momentum" with a close below HEmas of week/ Day & Hour.
Now it is the "closing above of DLEma" which would suggest a "pause in downward correction".
The remaining 3 days of the month: a close above 5401 would suggest of "return of upward momentum" in the month T/F. And then after another 2 days, a close above 5354-WEma would keep the weekly uptrend intact.
For our trading, the immediate concern is of Week/ Day & Hour. Since week's upward momentum is down and price is falling based on Day TA, look for day T/F to arrest this fall with a close above DLEma for positional trades which could be further fine tuned with Hour TA.
Best wishes.
ilango.

Nifty PreMarket View

A normal correction would pause around 20sma-5385-5395 zone, makes a bounce/ retracing moves and continue the correction, the depth of which would be known based on the retracing move.
If no new low is made in the opening session, retracing is on.
If pivot,5452, is surpassed, larger retracing is on.
Corrections have many faces. When clarity is there, trading is fun and rewarding.
And when clarity is less, seek refugee in the "support/ resistances" and take action based on intra TA with small SL.
The last consolidating zone @ 5352-92 is the support zone & 20 Sma-5395.
Similarly the last distributing zone is 5484-5521 & Wk.Pivot @ 5488.

Query of a reader: Right now what i am seeing is that weekly is giving a sell in most of the stocks and nifty. Along that there is a probability that after a day or so stocs will give a buy on daily time frame but may remain in sell mode on weekly. In your experience how have the markets behaved under such conditions... Are they good for positional trades on daily time frame?

Answer:Week TA is in OB zone for 2 weeks and index momentum too has shown slowing down. This coupled with Day TA developing -ve div @ OB zone has led to the current fall.

If we see a +ve div at OS zone in Hour TA would be a reliable signal for playing longs.

TT has clearly shown "loss of momentum" with a close below HEmas of week/ Day & Hour.

Now it is the "closing above of DLEma" which would suggest a "pause in downward correction".

The remaining 3 days of the month: a close above 5401 would suggest of "return of upward momentum" in the month T/F. And then after another 2 days, a close above 5354-WEma would keep the weekly uptrend intact.

For our trading, the immediate concern is of Week/ Day & Hour. Since week's upward momentum is down and price is falling based on Day TA, look for day T/F to arrest this fall with a close above DLEma for positional trades which could be further fine tuned with Hour TA.

Best wishes.

ilango