Last week, the stock of ITC surged 3.8 per cent, decisively closing above the significant resistance at ₹318 as well as its 50-day moving average. Now, the stock has the potential to rally to ₹331 levels. Traders with a short-term horizon can buy the stock with a fixed stop-loss at ₹317. Further breakthrough above ₹331 can push the stock up to ₹342 and ₹350 in the short term.

The medium-term trend, however, is down. To alter it, the stock needs to emphatically close above ₹350 levels. Indicators such as relative strength index and moving average convergence divergence in the daily charts have entered the positive territory implying upward momentum. But any slip-up in the stock’s current rally can drag the stock down to ₹310 and then to ₹300 in the short term. Subsequent supports are at ₹285 and ₹273 levels.

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