ITC had shown Base formation breakout last friday from the level of 291.
Base formation- base formation is a pattern where smart investors accumulate the stock over a period of time which creates supply scarcity in the market and once some positive news came for the stock its demand increases which takes the prices to very high levels due to low supply and high demands. usually in such cases we can see very high volumes, gap up openings and block deals.
All these things had happened in ITC in last week, we can see a base formation in last 1 year then finally a very good results came last week, which creates demand supply mismatch and the magic happened. stock opened 5% gap up with hugh volumes, Block deals etc.
so this stock is a candidate for Re-rating with very good returns in near future.
Trading Targets-
Buy - Current Levels
Stop Loss- 290
Targets-320/330
Base formation- base formation is a pattern where smart investors accumulate the stock over a period of time which creates supply scarcity in the market and once some positive news came for the stock its demand increases which takes the prices to very high levels due to low supply and high demands. usually in such cases we can see very high volumes, gap up openings and block deals.
All these things had happened in ITC in last week, we can see a base formation in last 1 year then finally a very good results came last week, which creates demand supply mismatch and the magic happened. stock opened 5% gap up with hugh volumes, Block deals etc.
so this stock is a candidate for Re-rating with very good returns in near future.
Trading Targets-
Buy - Current Levels
Stop Loss- 290
Targets-320/330