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.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.