ITC has been in limelight since many months for all the good reasons. Despite the uncertain market conditions, ITC remains one of the top performers from the heavyweight basket. In the recent session, the stock confirmed a fresh breakout above Rs 272 mark on a closing basis.
The price action was accompanied with humongous volumes and that indicates that the breakout is genuine. Thus, traders can accumulate the stock in the range of Rs 275 - Rs 270 with a stop loss of Rs 262 for an upside target of Rs 290 in coming 2 – 3 weeks.
Recently IOC corrected from a high of Rs 135 towards the recent low of Rs 115. During the process it has retested and found support at the placement of 200-DSMA. In addition, we are witnessing a reversal ‘Spinning Top’ candlestick pattern on the daily time frame which indicates possibility of a bounce.
Thus, we advise traders to go long in the stock in the range of Rs 117 - Rs 115 with a stop loss of Rs 110 for an upside target of Rs 126 in 2 – 3 weeks.
(Mehul Kothari - AVP – Technical Research, Anand Rathi Shares & Stock Brokers. Views are personal).
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