Buy and Hold....

Buy ITC Ltd (Buy above Rs169.5, Target Rs178.5): ITC Ltd has been holding the support of Rs165 quiet well despite weakness in broader markets and managed to close in the green with spurt in volumes. On the upside immediate resistance is seen at levels of Rs169 above which a breakout from the triangle will be confirmed, which should take stock price towards Rs180.Adding to it being a defensive, it provides better diversification and better risk reward ratio at times of highest volatility in the markets. We advocate buying stock above Rs169.5 with stoploss of Rs165 for Target of Rs178.5.