Stuck with ITC? Here's why the stock is a tough bet to play

We can clearly see that the stock is forming classic lows near around 55 days Hurst’s Time cycle and reversing back on upside from there. Since March 2021, majority of the lows are around this cycle dates.

However, the desired momentum is not seen. As of now we can see that the stock is now moving to the second half of the cycle which is usually the sell mode. The chances getting bleak for the stock to rally with each passing day until the next cycle low kicks in which is likely only post 14th July 2021.

This means that there is high probability traders and investors who are stuck in ITC might have to wait for more than a month before some action starts. Also, the overall pattern is also forming the shape of topping Head & Shoulder with neckline near 200 levels. Any breach below it might result into panic among traders and there can be some serious selloff that can then kick in until July 14.

For any momentum to gather on upside we need to see the stock breaking above Rs 220 decisively with strong momentum but with cycle entering into the sell mode it might be tough bet to play with.

In a nutshell, ITC can continue to meander in a range of Rs 220–200 for now and positive traction can be witnessed on this stock post July 14, 2021. Traders or investors should be careful once Rs 200 is taken out as that can kick in real panic across.

The author is Founder/CEO, Waves Strategy Advisors

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