ITC has broken down below 200 dma How frequent is this event What should one do

1. Deepak Singh
2deepaksingh@gmail.com
Stateofthemarket.net
Dealing with
ITC breakdown
below 200 dma

2. Breaking News: ITC breaks down below 200 dma

3. How Frequent is this event?
Chart Source: Chartalert.com
ITC broke down below 200 dma only once since March
2009

4. What happened on Breakdown in 2011?
Chart Source: Chartalert.com

5. Current Breakdown
Chart Source: Chartalert.com

6. 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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