Short ITC with stoploss of Rs 295: Thukral

Hemant Thukral, National Head-Derivative Desk of Aditya Birla Money is of the view that one can short ITC with stoploss of Rs 295.

Thukral told CNBC-TV18, “Yes, the way the shorts have been piled up on ITC, it may see some more downward levels. Importantly, the 16 percent open interest (OI) has been added up.”
He further added, “Secondly, the premium has come down clearly telling that shorts have been piled. The main reason was, the way it gave away the technical support level of Rs 295-290, which always has been a strong support zone for ITC, I think ITC should retest now Rs 279-280. If you see, along with all Nifty-fifty stocks, ITC and the IT pack is the only pack that has not tested 200 DMA. I am expecting ITC also to retest 200 DMA of Rs 279-280. So, in an immediate short-term, I think traders can go short but yes, it is a very strong counter. So, you have to keep a stop loss of Rs 295 on it. The moment it goes above that, please come out of this trade.”