ITC is one of the NIFTY 50 shares and has been a traditional bluechip since decades ago. It's one of the very old trading companies that has undergone metamorphosis over the years and become a conglomerate over the years. Every business has to go through an evolution cycle and no escaping that.
In Elliott parlance, ITC completed its full five year growth cycle in mid-2017 after attaining a peak of INR 360 levels. A major correction is since underway, will wind its way through time and will take months and months. At a minimum the correction will hit 0.382 level, which level it has touched very recently. The prices may bounce from here as part of three wave structure but that's a bull trap and beware of picking up large quantities in your portfolio.
In my opinion, it's a bit too soon and the correction has way to go. A further correction after an immediate bounce from here will likely occur. The target correction level is around INR 150..at which stage it should have corrected by 0.618 Fibonacci retracement level.
The wave pattern and numbering may be inferred from attached chart.
Corrections are always long drawn process and will take time. Patience pays in the long run.
ITC
In Elliott parlance, ITC completed its full five year growth cycle in mid-2017 after attaining a peak of INR 360 levels. A major correction is since underway, will wind its way through time and will take months and months. At a minimum the correction will hit 0.382 level, which level it has touched very recently. The prices may bounce from here as part of three wave structure but that's a bull trap and beware of picking up large quantities in your portfolio.
In my opinion, it's a bit too soon and the correction has way to go. A further correction after an immediate bounce from here will likely occur. The target correction level is around INR 150..at which stage it should have corrected by 0.618 Fibonacci retracement level.
The wave pattern and numbering may be inferred from attached chart.
Corrections are always long drawn process and will take time. Patience pays in the long run.
ITC
Comment:
In continuation if original post, like to add that the Wave A of retracement appears to be over and Wave B, which is a protracting sideways correction is already over or under way in advanced stages. It will be followed by a 5-wave down C wave. I would be in no rush to mark the wavecount. It's wiser to let the down move unfold and approach with more confident labelling later. What we know for sure is that long term correction is underway for sure and it will meander its way down for more weeks and months to come.