We recommend traders to buy this stock around Rs 295 with a price target of Rs 315. A stop loss should be placed below Rs 287, says Aditya Agarwal of Way2Wealth Brokers.
On the daily chart, ITC has precisely tested the daily 89-EMA on Thursday and formed a bullish ‘Hammer’ pattern on daily chart. The said pattern got activated on Friday and we saw support based buying interest coming in the stock.
The daily RSI (14) precisely found support near 40 levels and started heading northward. The higher top higher bottom formation on the weekly chart is intact which indicates that the current trend is still on the upside.