Sell ITC, target Rs 250: Dinesh Rohira

ITC continued to remain under pressure despite attempting to remain on a positive trajectory. The scrip broke below an important trend channel of Rs 282 in last week’s trade, and further, it slipped below the short-term moving average of 5-10-days level.

There was a negative signal from volume trend as it continued to consolidate. The scrip formed a solid bearish candlestick pattern on its weekly price chart after breaching below 10-days EMA level indicating a sustained pressure.

Further, the secondary momentum indicator continued to indicate negative signal with RSI slipping at 50s levels coupled with the bearish outlook from MACD trend.

The scrip is facing a resistance at Rs 296 levels and support at Rs 244 levels. We have a sell recommendation for ITC with target of Rs 250 which is currently trading at Rs 272.30.

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