ITC - Technical Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Technical Rating: 2.8

Here’s a clear-eyed technical dive into ITC Ltd., a heavyweight with solid fundamentals but currently facing technical headwinds

📉 Trend Overview

Current Price ₹408 is trading below both 50-DMA (₹418) and 200-DMA (₹425) → short-term and medium-term trend both under pressure.

The stock is ~18% down from its 52-week high (₹495), suggesting a soft downtrend or beginning of a reversal.

🧭 Trend Status: Weak downtrend with signs of a potential base formation.

🔁 Momentum Indicators

RSI (35.3): Deep in oversold territory → signals possible bounce ahead but still lacking momentum.

MACD (-2.22): Negative, widening histogram → confirms bearish sentiment.

Volume (71.9L) vs Avg (87.8L): Declining volume → low conviction selling and rangebound behavior.

📊 Bollinger Bands

Likely trading near the lower band, consistent with oversold readings.

No major squeeze, but volatility could expand if a breakout/breakdown materializes.

📐 Support & Resistance Matrix

Zone Type Price Range (₹) Commentary

Support 395 – 405 Price base with RSI support

Resistance 418 – 425 Moving average stack → strong barrier

Breakout Zone 430+ Clears DMA wall → signals reversal setup

🎯 Trade Strategy

Entry Zone: ₹398–₹408 (oversold bounce candidate near support zone)

Exit Zone: ₹418–₹425 (resistance at 50-DMA and 200-DMA)

Stop Loss: ₹390 (below 52-week low, clean invalidation)

🔍 Conclusion

ITC is in a mild corrective phase, weighed down by technical indicators but still fundamentally strong.

A breakout above ₹430 with volume could re-ignite bullish momentum toward ₹455–₹470.

Near-term strategy: watch for reversal cues, especially RSI divergence or MACD convergence.

Want a comparative view with other FMCG bigwigs like HUL or Nestlé to see who’s technically ready to lead the next leg? Let’s lay the charts side by side and decode their signals 🔍📈

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