Stock name: ITC Limited

Pattern: Rounding bottom breakout

Time frame: Weekly

Observation:

Once the stock breaks out of such a pattern, the stock travels a distance equal to the difference between the neckline and the bottom of the rounding bottom pattern. Here the neckline is around 367 and the bottom is around 137, which implies that the stock may touch 600.

Since this is a weekly time frame, it is usually perceived that these positions can take many weeks / many months of time to move.

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Disclaimer: This analysis is purely for educational purpose and does not contain any recommendations. Please consult your financial advisor before taking any financial decision.

News for the day:

1) The Hinduja group is planning to raise its stake in IndusInd Bank from 15% to 26% with an investment of 10,000 crores.

2) Bank of Baroda, India cement, ITC, and Divis lab are some of the key companies to watch for as these companies will be releasing the Q3 results for FY 2023 today.

3) Adani enterprises will be removed from the Dow Jones Sustainability Indices, effective from 07^th February as per the announcement made by S&P.