ITC

We recommend a buy in the stock of ITC from a short-term perspective. It is perceptible from the charts of ITC that the stock has been on a long-term uptrend since its October 2008 low of Rs 132, forming higher peaks and bottoms. After recording a life-time high of Rs 153 in late July, it saw a medium-term downtrend till late September. Taking support in the band of Rs 220 and Rs 225, the stock resumed its long-term uptrend recently. It gained 6 per cent accompanied with good volume in the last two sessions and is trading well above the 21-day and 50-day moving averages. The daily and weekly Relative Strength Indices are featuring in the bullish zone. The daily moving average convergence and divergence indicator is signalled a buy and is hovering in the positive territory. Considering that the stock’s intermediate-term up trendline is intact, we are bullish. We expect it to surpass its all-time high and rally until it hits our price target of Rs 270. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 235.

via BL