EquityPandit’s Outlook for ITC for the week (August 31, 2015 – September 04, 2015):
ITC closed the week on negative note losing more than 1%.
As we have mentioned last week that the support for the stock lies in the zone of 315 to 320 where short term moving averages and long term trend-line support for the stock lies. The stock hit a low of 312 during the week and close the week around the levels of 327.
As seen from the charts the stock has formed a Inverse Head & Shoulder pattern on daily charts. The neckline for the same lies around the levels of 332. If the stock manages to close above the levels of 332 and according to the Inverse Head & Shoulder pattern the targets for the breakout can be in the range of 370.
Resistance for the stock lies in the zone of 335 to 340 where 200 and 500 Daily SMA are lying. If the stock manages to close above this levels the stock can move to the levels of 370.
Broad range for the stock in coming week is seen between 310 to 315 on downside and 345 to 350 on upside.