ITC - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 4.0

📦 ITC shows strong fundamentals and stable technicals. Entry near ₹400–₹405 is optimal. If already held, consider exiting near ₹455–₹470.

📈 Positive

• ROCE 36.9% and ROE 27.9% — excellent capital efficiency
• EPS ₹28.2 and P/E 25.7 — reasonable valuation vs industry PE of 50.7
• MACD 2.75 and RSI 47.2 — neutral momentum with upside potential
• Debt-to-equity 0.00 — zero leverage
• Dividend yield 3.51% — strong income support

⚠️ Limitation

• PEG ratio 2.79 — valuation not fully justified by growth
• Trading slightly below DMA 50 (₹410) and DMA 200 (₹417) — mild bearish bias
• Volume below weekly average — short-term interest may be cooling
• FII holding dropped by 0.59%

🚫 Company Negative News

• Stock corrected ~13% from 52-week high of ₹472
• Flat quarterly profit growth — ₹5,113 Cr. vs ₹4,912 Cr.

✅ Company Positive News

• Strong performance in FMCG and hotel segments despite macro headwinds
• DII holding increased by 0.50% — domestic investor confidence
• Analysts maintain long-term bullish view with targets above ₹475

🏭 Industry

• Consumer goods sector benefits from stable demand, rural recovery, and festive season tailwinds
• ITC trades below industry PE (50.7) — offers relative value

🧾 Conclusion

• ITC is a fundamentally strong and technically consolidating swing candidate
• Best entry: ₹400–₹405 near support and RSI base
• If already held, exit near ₹455–₹470 — resistance zone and 52-week high
• Watch for RSI >52 and MACD continuation for confirmation

I can also compare ITC with other FMCG and diversified conglomerates to highlight stronger swing setups.