ITC has generated a lot of investor interest, but its stock performance has been lacklustre over the past five years even in an unprecedented bull run. While recent data suggests that retail investors have increased their stake in the stock to 12.6%, technical charts show why they should avoid entering it at current levels.
Retail investors are attracted to falling stocks that are in the news, so much so that they have a cult following. While there’s nothing wrong with the strategy, it is something that is best left to professional fund managers, who do it for a living. However, retail investors are the ones who often end up losing money in such situations. Reason: They fall into the trap of buying the stock when institutional players are dumping it. The ITC stock
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