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ITC retained its ₹308-₹331 sideways trading range for the seventh consecutive week. The stock fell initially to test ₹308, but rose sharply in the last couple of trading days to close 1.3 per cent higher for the week. The stock is likely to rally further to test ₹331 — the upper end of the range. A reversal from this level can keep the stock trading sideways and drag it lower to ₹315 and ₹308. A breakout on either side of ₹308-331 will decide the next leg of move for the stock. Traders can wait for such a breakout. The sharp bounce back from ₹308 last week indicates fresh buying interest at lower levels. Also, the 200-week moving average support is near the lower end of the range at ₹309. All this increases the possibility of the stock sustaining above ₹308 and breaking out of the range. This can take it higher to ₹337 — the 200-day moving average resistance.
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