EquityPandit’s Outlook for ITC for the week (October 05, 2015 – October 09, 2015):
ITC closed the week on positive note gaining around 2.0%.
As we have mentioned last week that the stock is trading around the strong resistance zone of 320 to 325. If the stock manages to close above the levels of 325 the stock can move to the levels of 335 to 340 where 200 and 500 Daily SMA are lying. During the week the stock manages to hit a high of 333.85 and close the week around the levels of 329.
Support for the stock lies in the zone of 310 to 315 where 100 Daily SMA and 200 Weekly SMA are positioned. If the stock breaks below the levels of 310 on closing basis then the stock can drift to the levels of sub 300.
Resistance for the stock lies in the zone of 335 to 340 where 200 & 500 Daily SMA and 100 Weekly SMA are positioned. If the stock manages to close above the levels of 340, then the stock can move to the levels of 360.
The stock has been consolidating in the range of 300 on downside to 335 on upside since last 5 months. A breakout on either side will move the stock further 4% to 5% in that direction. The stock has formed a Hammer pattern on monthly charts in downtrend and consolidation phase indicating the trend reversal.
Broad range for the stock in coming week is seen between 315 to 320 on downside and 345 to 350 on upside.