In the previous session, The
index saw a mild positive opening in the morning but soon slipped into the lowest point of the day. However, the Index recovered from the low and made a high near 15899. The Index closed the day with a net gain of 32 points. Technically, the Nifty index made a Doji candle on the chart which indicates indecision in the market. Hence a cautious and stock-specific approach is advisable for the next trading day.
Indian Stock Market would open marginally negative. As the global peers are bullish today and hence Indian Stock Market would also trade in a range. Traders can go long in the market if BankNIfty manages to close above 35132 as Nifty is already in the positive zone. Following stock looks technically strong at this point and one can go long in it.
ITC Ltd (NS: ITC )
NSE: ITC BSE:500875 Sector: Tobacco Products
ITC Ltd. is the trending stock recently, as we have seen some upside movement in the stock after a long-time consolidation. The stock was testing the patience of investors. In the previous session, the stock made a high near 213.60 and closed with a net gain of 2.61%. ITC Ltd on Saturday reported a 28.6% year-on-year growth in standalone profit to Rs 3,013.5 crore in the quarter ended June 2021.
‘Buy and Forget’: If one has a long-term view, ITC is one of the stocks which can be added to the basket. Technically, On the daily chart, the stock is moving in the form of a long ‘Symmetrical Triangle Pattern’. Recently, the stock has given a breakout from the upper line on the chart. In Addition, Prices have been giving a break above the Ichimoku cloud which is a strong indication of a positive trend. The up-move has been supported by the base and the conversion lines as both the lines are seen rising along with the price. The Relative Strength Index (RSI) on the daily chart is 69.62, it is not showing any divergence against the price.
In a nutshell, the long-term view of ITC Ltd is positive. We can expect it to reach a target of 220-240 based on Fibonacci projection levels.
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