ITC - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.4
| Stock Code | ITC | Market Cap | 3,65,679 Cr. | Current Price | 292 ₹ | High / Low | 429 ₹ |
| Stock P/E | 17.9 | Book Value | 55.8 ₹ | Dividend Yield | 4.97 % | ROCE | 38.6 % |
| ROE | 29.6 % | Face Value | 1.00 ₹ | DMA 50 | 308 ₹ | DMA 200 | 349 ₹ |
| Chg in FII Hold | -1.28 % | Chg in DII Hold | 0.25 % | PAT Qtr | 5,112 Cr. | PAT Prev Qtr | 5,295 Cr. |
| RSI | 33.9 | MACD | -1.45 | Volume | 2,80,08,480 | Avg Vol 1Wk | 2,76,83,929 |
| Low price | 287 ₹ | High price | 429 ₹ | PEG Ratio | 6.01 | Debt to equity | 0.03 |
| 52w Index | 3.53 % | Qtr Profit Var | 4.86 % | EPS | 16.2 ₹ | Industry PE | 43.0 |
📉 ITC is trading below both its 50 DMA (₹308) and 200 DMA (₹349), reflecting technical weakness. RSI at 33.9 indicates oversold conditions, while MACD is negative (-1.45), confirming bearish crossover. Bollinger Bands show price near the lower band, suggesting downside pressure with potential for technical rebound. Current volume (2.80 Cr.) is in line with average (2.76 Cr.), showing steady participation but no breakout strength.
🔑 Short-term momentum signals: Bearish, with limited upside unless price reclaims ₹308–₹315 zone.
🎯 Entry Zone: ₹285–₹295 (support region)
🚪 Exit Zone: ₹320–₹330 (resistance region)
📊 Trend Status: Consolidating with bearish bias
Positive
- Strong ROE (29.6%) and ROCE (38.6%) highlight efficiency
- Dividend yield of 4.97% provides steady income
- Debt-to-equity ratio at 0.03 ensures balance sheet strength
- EPS at ₹16.2 supports valuation floor
Limitation
- Trading below both 50 DMA and 200 DMA
- RSI below 35 indicates oversold momentum
- Negative MACD confirms bearish crossover
- P/E (17.9) lower than industry average (43.0), but PEG ratio (6.01) signals stretched valuation relative to growth
- 52-week return only 3.53%, lagging sector peers
Company Negative News
- FII holding decreased (-1.28%), showing reduced foreign investor confidence
- PAT declined from ₹5,295 Cr. to ₹5,112 Cr.
Company Positive News
- DII holding increased (+0.25%), showing domestic institutional support
- Quarterly profit variation (+4.86%) shows resilience despite sector challenges
Industry
- Industry PE at 43.0 highlights sector trading at higher multiples
- FMCG sector facing margin pressures but supported by consumption demand
Conclusion
⚖️ ITC shows weak technical momentum with RSI below 35 and negative MACD. Entry is favorable near ₹285–₹295 with profit booking around ₹320–₹330. Trend remains consolidative with bearish bias unless price sustains above 50 DMA (₹308) and 200 DMA (₹349). Fundamentals remain strong with high ROE/ROCE and dividend yield, but technical weakness limits near-term upside.
Would you like me to extend this into a sector overlay comparing ITC’s technicals and valuations against peers like HUL, Nestlé India, and Dabur to highlight relative positioning in the FMCG space?