Trade Idea of The Day - ITC Ltd Target Rs.10- Religare Broking Ltd
ITC Ltd
BUY 30 MAR 315 PE ITC Ltd SELL 30 MAR 300 PE Entry Range 4 – 4.5 Target Range 10 Stop Loss 2
Rationale
* On the daily chart ITC has experienced a significant selling pressure, after a relief rally stock again trading on the negative note and closed below recent swing low of 313 and expected to drifted lower towards 300 mark.
* Price are consistently trading below its key moving averages and recently faces rejection from the 20-DEMA zone, which is now acting as a dynamic ceiling, suppressing any minor recovery attempts.
* 14-Day RSI indicating struggling phase and hover below the 40 mark, indicating that the bearish momentum is entrenched and the "oversold" bounces lack conviction.
* On the technical front candles show lower highs and lower lows, suggesting a continuation of the downtrend toward the next psychological support at 300.
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