ITC December expiry future today tumbled by 7% or 23 rupees and closed at 313. This was fresh breakdown below all short term averages and the stock now heading towards previous low and might be testing new lows in short terms. Today ITC 330 put option almost given 300%+ return in intraday to traders.
Technically stock below 326 remains sell and touch levels up to 280 to 286. For long term investors that will be buying the opportunity to add up ITC into portfolio on a fundamental basis. ITC weekly trend channel showing top resistance was at 359 and from where we saw trend reversal. On the downside, 28-286 is Lower channel line support zone and possible target zone for this bearish move.
Traders trail stop loss above 326 and wait for 280-286 in next 1- 3 weeks period.
Today move was also a major level breakdown on the monthly chart which is also very bearish from a long-term view.