11 Apr , 2022 By : Kanchan Joshi
ITC share price: After trading sideways from December 2020 to January 2021, ITC share have given sharp upside bounce from last week of February. ITC share price has shot up from Rs208.50 (close price on NSE on 24th February 2021) to Rs273.15 today. In this rally, ITC stocks climbed to new new 52-week high giving fresh breakout on technical chart at Rs263 apiece levels. According to stock market experts, the stock is in bull trend and it has now strong support at Rs255 levels.
Speaking on technical reasons behind ITC shares climbing to new 52-week high; Rohit Singre, AVP — Research at Bonanza Portfolio said, "ITC share price rally has helped stock give fresh breakout at Rs263 apiece levels. It is now in bull trend and it may go up to Rs300 levels as its immediate hurdle is now placed at this level. Those who have this stock in their portfolio are advised to hold the stock further."
Brokerage firm Edelweiss Wealth research report has also given 'buy' tag to ITC shares expecting the stock to go up to Rs450 apiece levels in long term.
On fundamentals that may fuel ITC share price rally; the wealth research report said, "We expect the volume in cigarettes to revive at a CAGR of 5 per cent during FY22–24E as against a CAGR of -1 per cent during FY11–21; FMCG’s EBITDA margin to scale up to higher single digits; and the hotel, paperboard and agri-commodities businesses to revive. This will lead to an earnings CAGR of 12 per cent in FY22–24E against a mere 7 per cent in the last five years."
Highlighting the bull trend visible on chart pattern of ITC share price; Edelweiss Wealth research report said, "A strong upside move of prices on the ratio chart of ITC/FMCG suggests a strong out-performance by the stock in the sector. Prices on the ratio chart suggest a base formation hinting towards the start of a strong out-performance by the stock. A probable formation of an inverted head and shoulder pattern on the weekly charts and a time series analysis on the quarterly chart indicate a change in trend and resurgence of the super bull cycle." The report went on to add that ratio chart on a P&F platform indicates a strong base building formation underway since two years.
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