Hold ITC with stop loss of Rs 288: Ashu Madan

Ashu Madan, President - Core Client Group, Religare Securities advises to hold ITC with stop loss of Rs 288.
 
Madan told CNBC-TV18, “Though we have seen that fast moving consumer goods (FMCG) and pharma are kind of emerging as a dark horse and in the last few trading sessions also ITC was holding out, even in the last expiry it was a bright star I would say. Last two days movement suggests that one should hold a very strict stop loss of Rs 288 though there is a out performance seen, but as we have been seeing –we still have to encounter the last dreadful hour and this time if you see the last few trading sessions, the selling is primarily in Nifty basket or frontline stocks.”
 
He further added, “ITC could be a victim of that. So, since investor has a holding price of Rs 285 and he is in the money, I would say that Rs 288-289 should be a strict stop loss because one should not lose money on this investment and hold it or may be ride it for some time. Unless it breaks that level I think it should remain above that level but you never know this kind of situation emerges and ITC goes down another Rs 20 once it is broken. So, one should hold with stop loss.”