ITC likely to test key resistance at Rs.333

ITC recouped most of its losses, rebounding from the low of Rs.312.35. The stock closed almost flat for the week. 

Key resistance is at Rs.333 which is likely to be tested this week. A break above this hurdle can take the stock higher to Rs.338.5— the 38.2 per cent Fibonacci retracement level and Rs.341.85— the 200-day moving average. 

It will also pave the way for the stock to target Rs.350 levels. Traders can go long if the stock moves past Rs.333 with a stop-loss at Rs.324. 

On the other hand, if the stock fails to surpass Rs.333 and reverses lower, it can test Rs.316 — the 55-day moving average support. This level has been providing a strong support for the stock over the last two weeks. 

The outlook will turn bearish if the stock falls below this support. Such a break can drag the stock lower to Rs.310 or even Rs.300.