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ITC (₹255.45)
ITC is gaining momentum as it extended its rally for the fourth consecutive week. The stock was up 2.4 per cent last week. The rally has taken it decisively above a key resistance at ₹250. This level may now act as a good support and limit the downside in the near term. The 21-day moving average has crossed all the major averages. This suggests that the current uptrend is strong and signals that the up-move is likely to extend. On the chart, ITC is now clearly headed to test its key resistance at ₹265. Whether the stock breaks above ₹265 or reverses lower from there would be deciding the next move. Inability to break above ₹265 and a reversal from there can trigger a corrective fall to ₹255 or ₹250. On the other hand, if ITC manages to surpass ₹265 decisively, it can rise to ₹275 . Further break above ₹275 will see the rally extending to ₹285 thereafter. The region between ₹245 and ₹240 is a strong support zone. The outlook will turn negative only if ITC declines below ₹240 decisively, which looks unlikely for the moment.
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