Britannia soared over a per cent in the last trading session post-formation of a ‘Doji candle' on the weekly chart. This is an early sign of reversal in the counter. Even on the weekly time frame, the stock has reversed from the supporting trend line and has started to rally towards the 23.60% Fibonacci retracement of the overall rally. The 14 period RSI has reversed from the oversold region, affirming the bullish stance in the counter. From a risk-reward point of view, one could initiate a long position in the counter from a short to medium-term perspective.
BUY ITC | TARGET: Rs 228 | STOP LOSS: Rs 198
ITC has certainly provided a trend line breakout on all time frames and is anticipated to surge higher post its strong quarterly earnings. On the technical parameters, the cluster of exponential moving averages is expected to provide support to the counter, and sustenance above the same could be seen as a strong sign to march higher. The leading indicator, Parabolic SAR is situated well below the stock price and now the most anticipated run could be seen in the coming future.
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Disclaimer: Osho Krishan is senior manager – equity research at Anand Rathi Shares & Stock Brokers. Views expressed are personal.
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