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ITC witnessed a turbulent beginning last week as the stock plummeted 7 per cent on Monday. The GST panel suggesting levying 40 per cent tax on products such as tobacco and pan masala, triggered the fall. Though the stock managed to reverse higher from Monday’s low of ₹310.7, the bounce back lacks strength. The stock is more likely to reverse lower again. However, the next key resistance is only in the ₹328-₹330 zone. The stock is likely to test this resistance zone before heading south. Only a strong break above ₹330 will ease the downside pressure. But such a break looks less probable. Key supports for the stock are at ₹316 — the 200-week moving average — and at ₹310. A strong break below ₹310 will increase the downside pressure and drag ITC lower to ₹300 and ₹295 thereafter. Traders can avoid trading in the stock this week.
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