ITC - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.0
| Stock Code | ITC | Market Cap | 3,80,826 Cr. | Current Price | 304 ₹ | High / Low | 444 ₹ |
| Stock P/E | 18.9 | Book Value | 54.7 ₹ | Dividend Yield | 4.72 % | ROCE | 36.9 % |
| ROE | 27.9 % | Face Value | 1.00 ₹ | DMA 50 | 327 ₹ | DMA 200 | 375 ₹ |
| Chg in FII Hold | -1.28 % | Chg in DII Hold | 1.49 % | PAT Qtr | 5,297 Cr. | PAT Prev Qtr | 5,113 Cr. |
| RSI | 37.1 | MACD | -6.07 | Volume | 1,76,61,905 | Avg Vol 1Wk | 2,69,06,025 |
| Low price | 300 ₹ | High price | 444 ₹ | PEG Ratio | 2.05 | Debt to equity | 0.00 |
| 52w Index | 2.74 % | Qtr Profit Var | 5.59 % | EPS | 27.8 ₹ | Industry PE | 42.7 |
📉 Chart & Trend: ITC is trading at ₹304, below both its 50 DMA (₹327) and 200 DMA (₹375), confirming a bearish bias.
📊 RSI: At 37.1, RSI is approaching oversold territory, showing weak momentum but potential for a short-term rebound.
📉 MACD: Negative at -6.07, reinforcing bearish momentum and lack of immediate recovery signals.
📈 Bollinger Bands: Price is near the lower band, suggesting oversold conditions and risk of further downside if support breaks.
📊 Volume Trends: Current volume (1.76 Cr) is below the 1-week average (2.69 Cr), showing reduced participation and weak buying interest.
📌 Momentum Signals: Short-term momentum is negative. Sustaining above ₹300 support is crucial; a breakout above ₹320 could trigger recovery.
🎯 Entry Zone: ₹300–₹310 (support zone, cautious entry).
🎯 Exit Zone: ₹340–₹360 (resistance zone, profit-taking advisable).
🔎 Trend Status: The stock is trending downward with weak momentum and oversold signals.
Positive
- Strong ROCE (36.9%) and ROE (27.9%) highlight operational efficiency.
- Debt-free balance sheet (Debt-to-equity 0.00).
- Dividend yield of 4.72% provides strong income support.
- Quarterly PAT improved to ₹5,297 Cr from ₹5,113 Cr (+5.59%).
- EPS at ₹27.8 supports valuations.
Limitation
- P/E of 18.9 is modest compared to industry PE of 42.7, but PEG ratio at 2.05 suggests stretched growth valuation.
- Price trading below both DMA 50 and DMA 200.
- RSI and MACD show weak momentum.
Company Negative News
- FII holdings decreased (-1.28%).
- Stock under pressure technically with bearish signals.
Company Positive News
- DII holdings increased (+1.49%), showing domestic institutional support.
- Strong dividend yield and debt-free balance sheet.
- Quarterly profit growth (+5.59%).
Industry
- Industry PE at 42.7 is much higher than ITC’s P/E of 18.9, showing relative undervaluation.
- FMCG and diversified conglomerates are benefiting from consumption growth, though valuations remain high in the sector.
Conclusion
⚠️ ITC is in a bearish trend with weak technical indicators. While fundamentals are strong with high ROCE, ROE, and dividend yield, technical weakness and declining FII interest limit short-term attractiveness. Short-term traders may consider entry near ₹300–₹310 with strict stop-loss, targeting ₹340–₹360. Long-term investors can accumulate gradually, given strong fundamentals and sectoral tailwinds.
Selva, since you’re benchmarking FMCG and diversified plays, I can prepare a peer overlay with HUL, Dabur, and Nestlé India to compare ITC’s momentum against sector rotation signals. Would you like me to add that basket scan for clearer compounding opportunities?