ITC: UPDATE.Since you may have bought ITC on our analysis, We are giving update. We have bought ITC and not worried as we can hold it if it comes down to 385 also. But since you all may get worried if it break as it had closed at 442, And so I am updating on ITC.
First of all we see ITC movement, it had tried to break bellow neck line 3 to 4 times but was unsuccessful. Then it break above resistance of 446 and then again came down to 442. This simply means buying is comming at 438 and selling g at 450.
Secondly it again had stuck in narrow range, which should have expanded today.
Now since we have bought it at 447 we are in loss of 5 Rs. If bought in cash then there is no.wory only holding g period will increase , but if bought in f & o then hedge your position by selling 440 call. If ITC close above 446 then close call with 3500 loss and let long carry on. If ITC close bellow 440 then carry both short call and long ITC till 435 is taken out. If 435 is taken out close long and carry on short call. 440 call is @10. In second senerio call will become 0. Wait for first 15 min before taking hedging decession. As said earlier in nifty analysis that option is for those who can bear loss. Who cannot bear loss they can buy only in cash.
We have marked green support line which is neck line. It is strong support.
ITC had made lower high in last 3 days. So again low of 3 days before too falls near support line.
Conclusion
ITC may resume its upward journey from Monday onwards provided it hold 440.
