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ITC spiked to an intra-week high of ₹292 on Tuesday but fell subsequently, giving back all the gains. Sunsequently, the stock traded range-bound for the rest of the week. Immediate resistance is at ₹280. Inability to break above this hurdle can drag it to ₹267 or ₹265 this week. Further fall below ₹265 looks less probable as the broader bullish view remains intact. This is evident from the 55-day moving average crossing the 100 as well as the 200-day moving average last week, which is a bullish signal. As such, an eventual break above the level of ₹280 will boost the bullish momentum in the stock and take it higher to ₹300. As mentioned last week, the region around ₹300 is a key long-term trend resistance. Whether ITC breaks above the level of ₹300 or not will decide the next move. If the stock fails to break above this hurdle and reverses lower, a corrective fall to ₹285 or ₹280 can be seen thereafter. In such a scenario, the pull-back move from ₹300 will need a close watch as it would decide the medium-term trend for the stock.
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