ITCHOTELS - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.1
| Stock Code | ITCHOTELS | Market Cap | 37,153 Cr. | Current Price | 178 ₹ | High / Low | 262 ₹ |
| Stock P/E | 43.6 | Book Value | 54.6 ₹ | Dividend Yield | 0.00 % | ROCE | 9.74 % |
| ROE | 7.04 % | Face Value | 1.00 ₹ | DMA 50 | 195 ₹ | DMA 200 | 205 ₹ |
| Chg in FII Hold | -9.39 % | Chg in DII Hold | 0.92 % | PAT Qtr | 286 Cr. | PAT Prev Qtr | 152 Cr. |
| RSI | 35.5 | MACD | -5.02 | Volume | 20,61,531 | Avg Vol 1Wk | 33,36,769 |
| Low price | 158 ₹ | High price | 262 ₹ | Debt to equity | 0.01 | 52w Index | 19.8 % |
| Qtr Profit Var | 25.4 % | EPS | 3.90 ₹ | Industry PE | 32.6 |
📊 Chart Patterns & Trend: ITC Hotels is in a reversal phase after a steep correction from its highs. Price is trading below both the 50 DMA (195 ₹) and 200 DMA (205 ₹), indicating strong bearish pressure and short-term weakness. Support is visible near 158–165 ₹.
📉 Moving Averages: Both 50 DMA and 200 DMA are acting as resistance. Sustained move above 195–200 ₹ would confirm a trend reversal.
📉 RSI: At 35.5, RSI is approaching oversold territory, suggesting weak momentum but potential for a short-term bounce.
📉 MACD: Negative (-5.02), showing bearish crossover and continued downside momentum.
📊 Bollinger Bands: Price is near the lower band, reflecting oversold conditions. A rebound toward 185–190 ₹ is possible if support holds.
📊 Volume Trends: Current volume (20.6 lakh) is lower than average weekly volume (33.3 lakh), showing reduced participation and lack of strong buying support.
🎯 Entry Zone: 165–175 ₹ (support zone).
🎯 Exit Zone: 190–200 ₹ (resistance zone).
🔑 Stop Loss: 160 ₹ (below recent support).
Positive
- Quarterly PAT increased from 152 Cr. to 286 Cr. (25.4% growth).
- Debt-to-equity ratio at 0.01 indicates virtually debt-free balance sheet.
- DII holdings increased (+0.92%), showing domestic institutional support.
- EPS at 3.90 ₹ supports valuation strength.
Limitation
- Price trading below both 50 DMA and 200 DMA confirms bearish trend.
- ROE at 7.04% and ROCE at 9.74% are modest compared to peers.
- Stock P/E at 43.6 is much higher than industry PE (32.6), suggesting overvaluation.
- No dividend yield reduces income attractiveness.
Company Negative News
- FII holdings decreased significantly (-9.39%), reflecting reduced foreign investor confidence.
- Stock has corrected sharply from 262 ₹ to 178 ₹, showing investor caution.
Company Positive News
- Quarterly profit growth supports earnings momentum.
- DII inflows show domestic institutional confidence.
- Strong fundamentals with debt-free balance sheet.
Industry
- Industry PE at 32.6 vs. stock PE at 43.6 highlights premium valuation.
- Hospitality sector supported by tourism recovery and rising consumer spending.
Conclusion
⚖️ ITC Hotels is in a bearish reversal phase with oversold signals (RSI weak, MACD negative). Short-term bounce is possible from 165–175 ₹, but resistance near 190–200 ₹ limits upside. Medium-term outlook remains cautious due to high valuation and weak return ratios, though debt-free status and earnings growth provide stability. Risk management is crucial for traders considering entry.
Would you like me to extend this into a peer benchmarking overlay with other hospitality stocks (like Indian Hotels, EIH, and Chalet Hotels) to highlight relative strength and sector rotation opportunities?