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.
Disclaimer: The author is Founder & CEO, 5nance.com. The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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