Share market value pick, Buy ITC For Price Target Of 285-320


ITC Ltd NSE CMP 265.70. On charts in shorter time frame the stock trading in downtrend with negative biasness. In intraday trading the stock made high and low of 266.95 and 263.90 respectively and formed doji pattern on the daily chart. The stock price closed below the SMA of 50 days of 271.10. RSI stands at 45.06 and MACD is trading below the signal line signs some weakness in the short run.

However the stock price is having long term uptrend and currently trading near around the crucial support level at 250 of its long term bullish trend. The stock price if continue to hold above the support level may retest the level of 285-320 in the short run.

Fundamentally the stock is good and have continue demands for its product in the future. The Quarter number remains in line with the expectation and continue to remain the same in the coming quarter. The stock price is again one of the attractive in the peer group of FMCG sector.

Bottom line: – give buy rating in the stock for upside of 18-20 %, for time frame of around 90 days by strictly following the stop loss on closing basis.

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McDowell Forms Inverted H&S Pattern, How To Trade?

United Spirits (McDowell), On Charts  forms an inverted Head & Shoulder pattern on hourly time frame and closed above the neckline in today trading session. Short term Price action trending in strong uptrend and supported by short term 7 and 21 day SMA cross over. RSI holds at 71.92 level and MACD signs crossover with positive divergence. The said breakout happens in fashion and if the stock price continue to hold above the support level on closing basis McDowell can retest the level of 2530-2560 in the short run.

On derivative front: – McDowell stock future added 81 points and closed with the gain of 3.24 % at 2510.95 in today trading session. Price Action breaks with heavy volume and further added 2.55% of open interest.

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Market Eyes On Monetary Policies.

Indian Benchmark Nifty added another 60 points and stands at 9920 level in first half of the today’s trading session. Nifty opens gap up by 25 points at 9884 and continues to capitalize on the same, ahead of the monetary policy scheduled to be announced today at 2.30 PM. Currently nifty has immediate resistance at the level of 9930 above which 9990-10040 can be retested on the higher side. On the contrary nifty spot may find immediate support at the level of 9850-9970 in the downside.

Bank Nifty index open with marginal gain at 24124 and continue to trend sideways. Bank Nifty trading in range of 24000-24230 from the last three trading session and waiting to get clues from the monetary policy. An upside breakout of the trading range in fashion may retest the level of 24350-24450 in the upside whereas below the level of 24000 it may correct down to the level of 23870-23600 in the downside.

Bottom Line: – Traders are advised to remain stock specific as Market expected to remain in broader range. Crucial support is intact at 9685 level. So buy on dip with stop loss below 9685 level can be a good strategy in short run. Market may face stiff resistance at the level of 10000-040 and closing above this level only may see some fresh buying further on the long side.


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