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The stock of ITC, which touched a new high of ₹409 in early trade on Saturday, nose-dived 8.3 per cent after the Government hiked excise duty on cigarettes. The significant medium-term resistance at ₹400 had kept the stock steady last week. However, it reversed from this resistance and decisively-broken key supports of ₹380 and ₹370, making them vital resistance levels now. This reversal has altered the stock’s medium-term uptrend. Nevertheless, it has found support at its next key base of ₹350 and hovers above this level. A strong downward break-out of this level can push it down to ₹340 and then to ₹330 in the short term. Traders with a short-term view can use such fall to initiate fresh short positions with a stop-loss of ₹370. Important resistances are placed at ₹370, ₹380 and ₹400 levels. Investors with medium-term outlook can exit the stock.
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