Nifty 50 is in a upward trend. To sustain it a correction is necessary. Between feb and march Nifty 50 might retrace to 0.618 fib levels. That would be around 10500. RSI shows a down trend and MACD is also moving towards a cross over.
However we need to keep a close look as budget on Feb 1 might influence the direction of Nifty 50.
Do your own research before ...
It is been observed that the price action breakout out from consective trendline indicating buyers in control and shall move up the price action from current levels.
It is been observed that the price action moving up in a trend and now it breaks an important resistance breakout at 545 levels. Now, it shall reach further up to next resistance levels.
It is been observed that the price action was trending up after consolidation. Now, it has made a new breakout, which shall take the price action further up to the next resistance levels.
Target : 1460
Attention please ...
tomorrow is budget day and lot of movement is expected.
You'll get a lot of calls/ideas saying this will happen, that will happen, go long, go short, etc.
But, as professional traders, we know that predicting is not our job, our job is to make money.
Believe me, whoever tells you that he knows what all will be announced in budget and how ...
ITC always suffers due to budget. Increased taxation on cigarettes is expected this budget, as every other budget.
ITC also has tested resistance again. And a powerful bearish piercing pattern with above average volume.
Short futures or buy cheaply ppriced OTM puts for quick profits after budget.
ITC reacts to budget as every year tax imposed on tobacco products are increasing. Anticipating the same from upcoming budget as well. Also given an example of Cup and Handle pattern, just for educational purpose only.
This time around the budget is more special than usual years, it is the budget after demonetisation and is coming one month earlier than usual. As seen in the chart and the green boxes the volatility usually peaks during the budget, this time we should expect no different. Another point is the strong negative correlation between the India Vix and Nifty. So good ...
NIFTY 50, on the confirmation line to break out the double bottom formation, will it lead to reclaim 8,600 in to the budget or will it retest 8,000 level on budget week and push run towards 8,600 or break 8,000 and towards 7,600?