ITC share price nears upper band of historical consolidation. How to trade next week?
Shares of Covid-favourite ITC are now under pressure amid discussions around BAT stake sale. In Friday’s session, the stock fell below the Rs 400-mark. “It has approached the upper band of a historical consolidation, which could potentially serve as support. In the short term, there might be a recovery towards Rs 440 and beyond. Support on the lower end is set at Rs 389, and if breached, the stock might face a further decline,” says Rupak De, Senior Technical Analyst at LKP Securities.
Edited excerpts from a chat:
The one-day-up and one-day-down pattern broke this week with Nifty rallying for four consecutive gains. Are we staring at fresh all-time highs in the week ahead? What can disrupt this leg of the upside?
A few days of consolidation ended in an upside breakout for the Nifty, suggesting a rise in optimism among market participants. The index has consistently closed above 21EMA for the last few days, indicating a positive trend. The momentum indicator RSI has experienced a bullish crossover following a base formation. In the short term, the index might move towards 22,200; furthermore, a move above 22,200 could potentially take the Nifty towards 22,600. However, failure to move above 22,200 might attract selling pressure, potentially leading to a disruption in the current rally. Support is positioned at 22,750.
Bank stocks have started to outperform with some participation from private bank
stocks as well while PSU banks remain unbeatable. Do some chart reading for us.
Bank Nifty has experienced a
