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ITC (₹339.1)
The stock was on a weak corrective rally last week. However, after testing its resistance at ₹350, the stock resumed its downtrend and declined almost 2 per cent. Short-term trend for the stock is down. The stock trades well below its 50- and 200-day moving averages. The indicators in the daily chart feature in the bearish zone supporting the short-term downtrend. However, the stock now tests a key support at ₹340 levels. A decisive breakout of this level will strengthen the downtrend and drag the stock down to ₹330 and then to ₹320 in the coming weeks. Traders with a short-term horizon can initiate fresh short position on such a fall with a stop-loss at ₹348. As long as the stock trades below ₹370, its short-term trend will remain bearish. Immediate resistances to note are at ₹355 and ₹361. Investors with medium-term view can remain on the sidelines.
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