Investors holding ITC Hotels shares at higher levels, particularly around Rs 180, are advised to consider an exit strategy rather than anticipating a sustained recovery, according to market expert Anshul Jain of Lakshmishree Investments & Securities.
Key Resistance Levels Identified
Jain points to the Rs 180-185 band as a significant technical and psychological hurdle for the stock. This zone represents a 50% retracement of the 45% decline ITC Hotels shares have experienced over the past 143 days. Repeated failure to breach such a retracement level post-correction often signals continued seller dominance and a lack of conviction for a strong rebound.
Sell on Rallies: The Recommended Strategy
For those who entered the stock near Rs 180, Jain's recommendation is clear: treat any upward movement towards the Rs 176-180 range as an opportunity to exit. He emphasized a “sell on rally” approach, cautioning against averaging down in weak counters without a definite breakout or structural shift.
Why Rs 190 is Critical for ITC Hotels
According to Jain, a sustained move above Rs 190 is necessary to indicate an “initial structure change” for ITC Hotels Ltd. Until this level is surpassed, the stock remains in a weak configuration with persistent downside risk. Should the current pattern persist, he warned that shares could potentially decline towards Rs 147.
This analysis establishes a precise framework for investors: the stock maintains a negative bias below Rs 190, warranting a fresh review only if it trades consistently above this threshold. For now, patience without a clear trigger could prove costly for ITC Hotels shareholders.
Disclaimer: This article provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.