Well ITC has risen from a big wave IV triangle. I have tried to put a label on the chart, and I feel we have completed an "expanded flat" in wave [4]. Now I might be wrong in my labeling and we may come down once more to complete wave (c) of wave [4]. Or we may continue up in wave [5]. FMCG stocks usually perform well when markets are in consolidations and lag when they are trending. So I feel Nifty is close to its bottom of wave II around 4950 - 4920 levels. I f we reverse from this range, and start on wave III, we have smart gains to see on Nifty, and at that time what ITC will do will be interesting to see. A good strategy will be to wait for a pullback to today's rise, try to determine whether it is a 3 wave or a 5 wave move, and keep a tab on Nifty. If Nifty takes support at this level, and ITC consolidates in a 3 wave move, we can expect more upsides in the stock. But If Nifty breaks below 4950 - 4920 band, we will have to take another look at it.
Thanks Aniruddha Ji. Gives much more clarity. One of the targets as per EW and Fib was 254.. sits well with impending wave 5 target..with divergences abound.. lets see..
ReplyDeleteITC is in secular up trend, so it will be wise not to attempt a contra trend trade unless overwhelming evidence is available, my personal experience is we are better off trading the wave C of a bear market only.
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