ITC share price tops Rs 300 for first time in 3 years, rallies 48% in 1-year; should you buy, sell or hold?

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

ITC share price tops Rs 300 for first time in 3 years, rallies 48% in 1-year; should you buy, sell or hold?
Technical analysts say that ITC has topped Rs 300 but the upside momentum seems to be decelerating. Image: Reuters

ITC share price jumped 1.4 per cent to a 3-year high at Rs 302.20 apiece on BSE in intraday deals on Thursday. The stock settled at Rs 299.50 apiece, up 0.5 per cent. 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,” Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst and founder, Gemstone Equity Research & Advisory Services, told FinancialExpress.com.

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,” AR Ramachandran, Co-founder & Trainer, Tips2Trades, told FinancialExpress.com.

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.

The stock recommendations in this story are by the respective research analysts and brokerage firms. Financial Express Online does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.

Photos