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.
Two corrective patterns forming, Elliot ABC wave and Evening Star.. A weekly close below 67.94 would pull USDINR towards 67.50 and If Elliot wave comes into play rupee could possibly see 66.80 levels.
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?