Technical Analysis

ITC is range-bound with a bullish bias

GURUMURTHY K | Updated on March 09, 2018 Published on April 23, 2017

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ITC (₹274.35)

After trading in a narrow range for most part of the week, ITC fell sharply by 1.8 per cent on Friday. Nonetheless, the ₹270-₹285 sideways range remains intact and so does the outlook for the stock. A breakout on either side of ₹270 or ₹285 will determine the next leg of move. A break below ₹270 can take the stock lower to ₹263, which is a key short-term support. Further fall below ₹263 is unlikely. But if the stock does fall below ₹263, it can move lower to ₹258 and ₹253. On the other hand, if ITC manages to break the current range above ₹285, it can gain fresh momentum. Such a break can take the stock higher to ₹300. On charts, the cup and handle pattern on the weekly chart leaves the bias bullish. As such, the possibility is high for the stock to break above ₹285 and rise to ₹300. The price action after testing ₹300 will need a close watch as this is a crucial long-term resistance level. If ITC manages to surpass ₹300, it can target ₹330 and ₹340. But a reversal from ₹300 can trigger a corrective fall to ₹290.

Published on April 23, 2017
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