Deepak Singh
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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