The recovery rally in ITC after its sharp fall in the first week of this month, is not gaining strength. Cluster of resistances are poised between ₹325 and ₹330. It includes the 200-, 21-, 100-day moving averages and the 38.2 per cent Fibonacci retracement resistance.
The 21-week moving average resistance is also placed around ₹330. Though the stock can move higher to test these resistances in the coming days, it might not be easy for it to breach ₹330 in the near term.
Traders can wait for rallies and go short on a reversal from the ₹325-₹330 zone. Stop-loss can be kept at ₹333 for the target of ₹317. Support for the stock is at ₹316.
A strong break below it can drag ITC lower to ₹310 and ₹308 thereafter. The downside pressure in the stock will ease only on a strong rise above ₹330. The subsequent targets are ₹335 and ₹338. But such a sharp rise looks less probable.