Opening range breakout seen in ITC along with spurt in volume!

Finally, the bulls have hit a break as the index, after scaling to new highs each day in the past seven trading sessions, slipped into negative terrain in the early deals on Tuesday. Besides, Nifty is down by 0.37 per cent. Sectoral performance is further disturbing. The only sector, which is trading with gains, is Nifty FMCG.   

Nifty FMCG is up by 0.84 per cent while Nifty is down by 0.37 per cent, which clearly suggests that Nifty FMCG is outperforming the frontline gauge by a wide margin. Also, during times of turbulence, defensive sectors come in limelight, and hence, defensive stocks also provide a good trading opportunity.   

As a result, on Tuesday, the stock of cigarettes to fast-moving consumer goods to hotel major ITC is witnessing an opening range breakout (ORB).   

This is a very popular trading strategy adopted by traders across the globe wherein, the traders use to attempt to profit from the day’s opening action.   

In this strategy, traders consider the high and low of the first hour or the first half an hour of trade. Once the stock moves above the high or low of that particular candle, traders initiate their position accordingly.   

ITC has also seen an opening range breakout in today’s session. Moreover, the stock has registered its highest single-day volume in the last five trading sessions.