Monday, November 30, 2015

ITC can extend its rally Rs.343.9

After recording an intra-week low of Rs.332, the stock rebounded and closed flat for the week. The key support at around Rs.331 provides base for the stock. 

The medium-term trend has been up for the stock since its early June trough of Rs.294. Within this trend, the stock trades in a sideways movement in the wide range between Rs.331 and Rs.360. 

The stock trades well above its 50 and 200-day moving averages. The indicators in the daily and weekly chart are showing mixed signs with a positive bias. 

Traders with a short-term horizon can buy the stock at current levels with a stop-loss at Rs.338 and exit at Rs.360 levels. An emphatic breakthrough of Rs.360 will strengthen the stock’s medium-term uptrend and take it northwards to Rs.370, which a key long-term resistance level. 

Significant supports to note are placed at Rs.331, Rs.320 and Rs.310.

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