ITC – Bounce back trade in the Offing ? Index Impact as well.
Before i start the post got to remember ITC has a weightage of almost
10% in Nifty and a 10% move in ITC can impact Nifty by 55 points.
-> The stock has been making higher tops and higher bottoms for a long time now.
-> The trend is positive and the last bottom at 310 as well as the
trendline and channels now co-incide around 310 odd levels.
> So for now a trade could be buy around 310 odd with stoploss at 300. Upside should be 330-340 where one can review.
Meanwhile on Nifty we have broken the last few months low which
confirms the stance to be cautious but given the polarization of weights
we may keep seeing major swings. Have some trendline supports at 5400
as well as channels. So a bounce to 5550-5600 seems possible if we hold
around this zone. Given that it will be a counter trend trade and the
risk of doing that a better way is to go through options of September
expiry like a 5700 at 55-60 bucks.
