itc breaks down below 200 dma - what should one do?

Deepak Singh

2deepaksingh@gmail.com

Stateofthemarket.net

Dealing with ITC breakdown below 200 dma

Breaking News: ITC breaks down below 200 dma

How Frequent is this event?

Chart Source: Chartalert.com

ITC broke down below 200 dma only once since March 2009

What happened on Breakdown in 2011?

Chart Source: Chartalert.com

Current Breakdown

Chart Source: Chartalert.com

What should one do?

• ITC breakdown appears to be more market driven than stock driven

• It’s breakdown reflects more on FII’s stance on India. If market sell off continues – then ITC may see more selling and may remain below 200 dma

• It’s only if ITC recovers and sustains above 200 dma – one should look to add the stock back in the portfolio else AVOID because ITC is over owned stock and may bear brunt of India specific selling

• Right now, ITC is Avoid and should be on wait and watch category.

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• Disclaimer - The state of the market presentation is Deepak's perspective on the market. The presentation is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this presentation you agree to make no trade relying in whole or in part on the comments of the writers

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