ITC - Swing Trade Analysis with AI Signals
Back to ListHere’s a structured swing trade analysis for ITC Ltd. based on the provided parameters
Swing Trade Rating: 4.0
| Stock Code | ITC | Market Cap | 3,64,795 Cr. | Current Price | 291 ₹ | High / Low | 427 ₹ |
| Stock P/E | 17.9 | Book Value | 55.8 ₹ | Dividend Yield | 4.98 % | ROCE | 38.6 % |
| ROE | 29.6 % | Face Value | 1.00 ₹ | DMA 50 | 298 ₹ | DMA 200 | 340 ₹ |
| Chg in FII Hold | -1.28 % | Chg in DII Hold | 0.25 % | PAT Qtr | 5,112 Cr. | PAT Prev Qtr | 5,295 Cr. |
| RSI | 49.2 | MACD | -3.49 | Volume | 1,13,02,529 | Avg Vol 1Wk | 1,23,39,408 |
| Low price | 275 ₹ | High price | 427 ₹ | PEG Ratio | 5.99 | Debt to equity | 0.03 |
| 52w Index | 10.6 % | Qtr Profit Var | 4.86 % | EPS | 16.2 ₹ | Industry PE | 44.0 |
📊 ITC shows moderate potential for swing trading. The stock is trading below both its 50 DMA (298 ₹) and 200 DMA (340 ₹), indicating short-term weakness and medium-term resistance. RSI at 49.2 suggests neutral momentum, while MACD (-3.49) confirms bearish undertone. Fundamentals remain strong with high ROCE (38.6%) and ROE (29.6%), low debt-to-equity (0.03), and an attractive dividend yield (4.98%). Valuation is favorable with P/E (17.9) much lower than industry average (44.0).
💡 Optimal Entry Price: Around 280–285 ₹ (near support zone, above 275 ₹ low).
📈 Exit Strategy (if already holding): Consider booking profits near 310–320 ₹ (resistance zone below 50 DMA and far from 427 ₹ high).
Positive
- ✅ High ROCE (38.6%) and ROE (29.6%).
- ✅ Low debt-to-equity ratio (0.03).
- ✅ Strong dividend yield (4.98%).
- ✅ P/E (17.9) much lower than industry average (44.0).
- ✅ EPS of 16.2 ₹ supports earnings strength.
Limitation
- ⚠️ Stock trading below both 50 DMA and 200 DMA.
- ⚠️ Neutral RSI (49.2) and bearish MACD (-3.49).
- ⚠️ PEG ratio (5.99) suggests expensive growth valuation.
- ⚠️ Decline in FII holding (-1.28%).
Company Negative News
- ❌ Decline in FII holding (-1.28%).
- ❌ Technical weakness below DMA levels.
Company Positive News
- ✅ PAT remains strong (₹5,112 Cr. vs ₹5,295 Cr.).
- ✅ DII holding increased (+0.25%).
- ✅ Dividend yield supports investor confidence.
Industry
- 🏭 Industry P/E at 44.0, much higher than ITC’s 17.9, suggesting undervaluation.
- 📈 FMCG and consumer goods sector remains resilient with steady demand.
Conclusion
🔎 ITC Ltd. is fundamentally strong with excellent profitability, low debt, and high dividend yield. Technically, it shows short-term weakness but offers value at lower levels. Entry near 280–285 ₹ with exit around 310–320 ₹ is advisable. Risk management is important due to reduced FII interest and valuation pressures.
Would you like me to expand this into a sector overlay comparing ITC with HUL and Nestlé, or refine it into peer benchmarking against direct competitors?