ITC - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.9
| Stock Code | ITC | Market Cap | 3,87,657 Cr. | Current Price | 309 ₹ | High / Low | 465 ₹ |
| Stock P/E | 19.2 | Book Value | 54.7 ₹ | Dividend Yield | 4.64 % | ROCE | 36.9 % |
| ROE | 27.9 % | Face Value | 1.00 ₹ | DMA 50 | 362 ₹ | DMA 200 | 398 ₹ |
| Chg in FII Hold | -1.28 % | Chg in DII Hold | 1.49 % | PAT Qtr | 5,297 Cr. | PAT Prev Qtr | 5,113 Cr. |
| RSI | 18.4 | MACD | -17.2 | Volume | 3,59,70,415 | Avg Vol 1Wk | 3,55,99,742 |
| Low price | 306 ₹ | High price | 465 ₹ | PEG Ratio | 2.08 | Debt to equity | 0.00 |
| 52w Index | 2.14 % | Qtr Profit Var | 5.59 % | EPS | 27.8 ₹ | Industry PE | 43.2 |
📊 Chart Patterns & Trend: ITC is in a bearish reversal phase after a steep correction from its highs. Price is trading well below both the 50 DMA (362 ₹) and 200 DMA (398 ₹), indicating strong downward pressure. Support is visible near 306–310 ₹.
📉 Moving Averages: Both 50 DMA and 200 DMA are acting as resistance. Sustained move above 365–370 ₹ would be required to confirm a reversal.
📉 RSI: At 18.4, RSI is in deep oversold territory, suggesting extreme weakness but potential for a short-term technical rebound.
📉 MACD: Strongly negative (-17.2), showing bearish crossover and continued downside momentum.
📊 Bollinger Bands: Price is near the lower band, reflecting oversold conditions. A rebound toward 330–340 ₹ is possible if support holds.
📊 Volume Trends: Current volume (3.59 Cr.) is in line with average weekly volume (3.55 Cr.), showing steady participation despite the correction.
🎯 Entry Zone: 306–315 ₹ (oversold support zone).
🎯 Exit Zone: 340–355 ₹ (resistance zone).
🔑 Stop Loss: 300 ₹ (below recent support).
Positive
- Strong ROCE at 36.9% and ROE at 27.9% indicate excellent efficiency.
- Debt-free balance sheet (Debt-to-equity ratio 0.00).
- Dividend yield of 4.64% adds strong income stability.
- EPS at 27.8 ₹ supports valuation strength.
Limitation
- Price trading far below both 50 DMA and 200 DMA confirms bearish trend.
- PEG ratio of 2.08 indicates limited growth-adjusted value.
- 52-week index gain only 2.14%, showing weak relative performance.
Company Negative News
- FII holdings decreased (-1.28%), reflecting reduced foreign investor confidence.
- Stock has corrected sharply from 465 ₹ to 309 ₹, showing investor caution.
Company Positive News
- Quarterly PAT improved from 5,113 Cr. to 5,297 Cr. (5.59% growth).
- DII holdings increased (+1.49%), showing domestic institutional support.
- Strong fundamentals with debt-free balance sheet and high efficiency ratios.
Industry
- Industry PE at 43.2 vs. stock PE at 19.2 highlights ITC’s undervaluation relative to peers.
- FMCG and tobacco sector supported by stable demand and strong cash flows.
Conclusion
⚖️ ITC is in a bearish reversal phase with oversold signals (RSI extremely low, MACD negative). Short-term bounce is possible from 306–315 ₹, but resistance near 340–355 ₹ limits upside. Medium-term outlook remains cautious due to weak price action, though strong fundamentals, dividend yield, and debt-free status provide stability. Risk management is crucial for traders considering entry.
Would you like me to extend this into a peer benchmarking overlay with other FMCG majors (like HUL, Nestle, and Britannia) to highlight relative strength and sector rotation opportunities?