ITC - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 4.1

📈 ITC is trending upward with strong technical support and healthy momentum, though nearing resistance levels.

📊 Technical Analysis

• Trend Status: Trending — price is above 50-DMA and approaching 200-DMA, indicating a bullish setup.
• Moving Averages: Price ₹414 is above 50-DMA (₹410) and slightly below 200-DMA (₹418), suggesting a potential breakout if sustained.
• RSI (63.1): Bullish zone, indicating strong momentum but nearing overbought territory.
• MACD (3.88): Positive crossover, reinforcing upward momentum.
• Bollinger Bands: Price near upper band, suggesting strength with possible short-term resistance.
• Volume: Current volume (1.97 Cr) is above weekly average (1.60 Cr), confirming strong participation.

🎯 Entry & Exit Zones

• Support Levels: ₹410 (50-DMA), ₹400, ₹390
• Resistance Levels: ₹418 (200-DMA), ₹430, ₹450
• Optimal Entry: ₹408–₹412 (on pullback)
• Exit Target: ₹430–₹450 (resistance zone)

✅ Positive

• Strong ROCE (36.9%) and ROE (27.9%) reflect excellent capital efficiency.
• Zero debt-to-equity ratio indicates robust financial health.
• Dividend yield of 3.39% enhances income appeal for long-term investors.
• Quarterly PAT increased to ₹5,113 Cr from ₹4,912 Cr, showing steady growth.

⚠️ Limitation

• PEG ratio of 2.82 suggests premium valuation relative to growth.
• Price still below 200-DMA, indicating overhead resistance.
• Stock is 12% below its 52-week high of ₹472, reflecting recovery in progress.

📉 Company Negative News

• FII holdings declined by 0.59%, indicating reduced foreign investor interest.

📈 Company Positive News

• DII holdings increased by 0.50%, showing growing domestic institutional confidence.
• EPS of ₹28.2 and consistent profitability support long-term valuation.

🏭 Industry

• FMCG and diversified conglomerate sector remains resilient with stable demand and pricing power.
• Industry P/E (51.7) is significantly higher than ITC’s (26.0), indicating relative undervaluation.

🧾 Conclusion

• ITC is trending upward with strong fundamentals and bullish technical indicators.
• Entry near ₹408–₹412 could offer a favorable setup with targets around ₹430–₹450.
• Investors should monitor resistance at 200-DMA and RSI levels for signs of continuation or pullback.