ITC - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 3.7

📊 Chart Patterns: ITC is trading below both its 50 DMA (405 ₹) and 200 DMA (414 ₹), showing weakness. Price action is consolidating near support levels around 390 ₹.

📈 Moving Averages: Current price (401 ₹) is below both 50 DMA and 200 DMA, indicating bearish bias. The 50 DMA is also below the 200 DMA, reinforcing short-term weakness.

📉 RSI: At 43.4, RSI is neutral but leaning towards bearish territory. No oversold signal yet.

📉 MACD: Negative (-1.59) suggests bearish crossover, confirming weak momentum.

📊 Bollinger Bands: Price is near the lower band, indicating limited downside but no breakout strength.

📊 Volume Trends: Current volume (82.8 lakh) is below 1-week average (104 lakh), showing reduced participation and lack of strong buying interest.

📌 Momentum Signals: Weak short-term momentum; rebound possible if support at 390 ₹ holds.

🎯 Entry Zone: 392–398 ₹ (near support).

🎯 Exit Zone: 420–430 ₹ (near resistance trendline).

🔎 Trend Status: Consolidating with mild bearish bias.

Positive

• Strong ROCE (36.9%) and ROE (27.9%) indicate efficient capital use.
• Debt-free balance sheet (Debt-to-equity 0.00).
• Attractive dividend yield of 3.57%.
• Quarterly PAT growth of 2.76% (₹5,113 Cr vs ₹4,912 Cr).

Limitation

• Stock P/E (25.2) is higher than its historical average, though lower than industry PE (45.6).
• PEG ratio of 2.74 suggests limited growth relative to valuation.
• Weak technical momentum with RSI and MACD showing bearish signals.

Company Negative News

• Decline in FII holding (-0.59%) indicates reduced foreign investor confidence.
• Stock struggling to break above 200 DMA resistance.

Company Positive News

• Strong quarterly profits (₹5,113 Cr vs ₹4,912 Cr previous quarter).
• DII holdings increased (+0.50%), showing domestic institutional support.
• Stable FMCG expansion and strong brand portfolio.

Industry

• Industry PE at 45.6 shows sector is richly valued compared to ITC’s P/E of 25.2.
• FMCG sector remains defensive with steady demand despite market volatility.

Conclusion

⚖️ ITC is consolidating with mild bearish signals. Short-term traders may consider entry near 392–398 ₹ with exit around 420–430 ₹. Long-term investors benefit from strong fundamentals, dividend yield, and debt-free status, though near-term momentum remains weak.