ITC stock rally has fizzled out since January; here are fresh price targets

Shares of ITC Ltd are down over 12% from their January 2024 high. The FMCG stock, which hit a high of Rs 481.40 on January 4 was trading at Rs 421 in the current session. In comparison, benchmark Sensex has gained 2.82% during the period. The rally in the ITC stock has slowed since January 2024. Earlier, ITC stock, which was once regarded a defensive stock delivered stellar 121% returns in nearly two years. ITC shares, which stood at Rs 213.95 on February 25, 2022 closed at Rs 473.95 on January 5 this year, more than doubling investor wealth during the period.

With the rally fizzling out, returns from ITC shares in the last two years have fallen to 65%. A fall of 11% seems to have impacted ITC stock rally the most in last three months.  

In a year, the stock could deliver 11% returns and lost 10% in 2024.

Here’s a look at what analysts said on the outlook of the ITC stock.

Shiju Koothupalakkal - Technical Research Analyst, Prabhudas Lilladher said, “The stock after the pullback witnessed from Rs 400 levels has been in consolidation near the Rs 420 zone just above the important 50EMA level of Rs 424 zone with bias maintained positive. A decisive breach above Rs 430 levels shall confirm a breakout above the short trendline zone to trigger for fresh upward move with targets of Rs 442 and Rs 455 level visible in the coming days. The near-term support would be near Rs 416 level as of now.”

Avdhut Bagkar, Derivatives & Technical Analyst, StoxBox said, “Despite the shares of ITC surpassing the 50-day moving average (DMA), the price action isn’t exhibiting any significant bullishness. The following hurdles fall at Rs 438 and Rs 445, which are its 100-DMA and 200-DMA. Only upon clearing these key barriers, the stock could trigger bullish bias. Until this scenario appears, price is anticipated to trade sideways, with situation playing out, looking to accumulate near Rs 415 and Rs 410 levels.”

Riyank Arora, Technical Analyst at Mehta Equities said, “The stock is trading around its minor support mark of Rs 420 on its hourly timeframe charts. A break below this level of Rs 420 should push the downside move further towards Rs 408 and Rs 409 levels. An immediate resistance is placed at Rs 429, above which the next resistance would be near Rs 433 and Rs 438 levels, which should serve as potential targets for the stock. The overall trend looks positive, and the risk-reward ratio is favourable for buying as well.”

In the current session, the ITC stock fell over 1% intraday to Rs 421. Total 2.63 lakh shares of the FMCG firm changed hands amounting to a turnover of Rs 11.12 crore.

Market cap of the firm fell to Rs 5.25 lakh crore. The stock hit its all time high of Rs 499.60 on July 24, 2023 and fell to its 52 week low of Rs 378.95 on April 5, 2023.

ITC stock has a one-year beta of 0.5, indicating low volatility during the period.

In terms of technicals, the relative strength index (RSI) of ITC stock stands at 54.8, signaling it's trading neither in the oversold nor in the overbought zone. ITC shares are trading lower than the 20 day, 30 day but higher than the 5-day, 50-day, 100-day and 200-day moving averages.