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ITC (₹241.5)
ITC tumbled 4.8 per cent last week and broke below the 21-week moving average support, which was expected to hold up. Inability to breach ₹245 — the 100-day moving average — may keep the stock under pressure. In such a scenario, the stock can extend its fall this week and testkey supports at ₹235 or ₹232 — the 38.2 per cent Fibonacci retracement level. If the stock manages to reverse higher from these supports, it can rise to ₹245 once again. Such a reversal will ease the downside pressure. If the stock manages to break above ₹245, it can rise to ₹250 and ₹252. The region around ₹255 — the 21-day moving average — is a significant resistance for the stock. The downside pressure will ease only if the stock breaks above ₹255 decisively. Investors holding long positions will need to be cautious. Hold the longs and retain the stop-loss at ₹235. The price action in the coming days will need a close watch as it will give cues on whether the current downmove is just a corrective fall or not.
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