21 Jul , 2022 By : Monika Singh
ITC share price jumped 1.4 per cent to a 3-year high at Rs 302.20 apiece on BSE on Thursday. ITC stock has rallied 48 per cent in nearly one year from its 52-week high of Rs 204.50, touched last year in August. Chairman and MD Sanjiv Puri on Wednesday said that ITC is looking to ramp up exports of its value-added FMCG products to international markets. Technical analysts say that ITC has topped Rs 300 but the upside momentum seems to be decelerating and there are very high chances that it may take some breather and slip under consolidation. “Best thing one can do is to either stay invested and keep the trailing stop loss at Rs 294; alternatively, profit must be booked and protected at current levels. Fresh entry is not advised as of now,”
The cigarette-to-soap maker’s portfolio of non-cigarette FMCG brands represented an annual consumer spend of over Rs 24,000 crore for the last financial year, registering a growth of around 9 per cent on-year. Weaker global markets, and correction in IT companies has led to strong buying in sectors which can comfortably pass on inflation costs like FMCG companies including ITC since the past 2 months, said an analyst. “A sustained close above 300 could lead to 315 in the coming weeks. However, long term investors can book some profit now & wait for a dip near 280-284 to initiate fresh buy,”
On Wednesday, ITC said that notwithstanding the near-term challenges, the company continued to deliver “robust growth” across all business segments, though inflation remains a “key monitorable”. ITC’s products are available in nearly 70 lakh outlets through its omni-channel network.
Investors’ patience seems to have paid off for those holding ITC, which is up 37% YTD, on the back the company’s renewed focus on enhancing value-added exports, recovery in cigarette business, coupled with robust growth seen across various businesses, Aamar Deo Singh, Head Advisory, Angel One, told FinancialExpress.com. Singh added that the stock has breached the crucial psychological level of 300, clearly indicating the uptrend in the stock. “Investors are well advised to hold onto their positions. Trading consistently above the 320 mark, the stock has a potential to touch its all-time high of 367 in 2017. Major support is seen around the 250 mark,” he said.
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