ITC likely to fall further

ITC fell after touching a high of ₹278. It is just above a key support level of ₹269. The bias is bearish on the chart. There is an inverted cup and handle pattern formation on the daily chart. This will now serve as a continuation pattern indicating that the downtrend is still intact. This increases the possibility of the stock breaking below ₹269. Such a break can take the stock lower to ₹262-₹260 — a key long-term support level in the coming days. As being reiterated, the ₹262-₹260 region is a key long-term support which is likely to halt the current downtrend. An upward reversal from this support zone will keep the long-term uptrend, which has been in place since March 2016, intact. A bounce to ₹270 is possible in such a scenario. If ITC manages to rise past ₹270 thereafter, it will signal a trend reversal and also the beginning of a fresh leg of upmove, which may have the potential to take the stock further higher. Investors with a long-term perspective can start buying the stock at ₹263 and accumulate at ₹260.

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