After the budget, global brokerage Jefferies upgraded the stock from hold to buy and raised the target price to βΉ585 from βΉ435, citing ITC’s clear advantage. The stock, which surged 17% in the past month compared to a 3.6% gain in the Sensex, ended at βΉ494 on Wednesday, up 0.4%.
“Having moved up swiftly recently, there is a possibility of consolidation or a minor dip in the next week or so, which could be an opportunity to enter near the support levels around βΉ465-470,” said Nagaraj Shetti, senior technical analyst at HDFC Securities. “The next upside resistance to watch is around βΉ550 in the next 1-2 months.”
ITC has emerged from its 11-month slumber. In the past month, trading volume has steadily increased, culminating in a massive surge in the previous three sessions.
“Considering the broader structure, any decline toward βΉ480-460 should be seen as a buying opportunity,” said Sameet Chavan, chief analyst-technical & derivatives, Angel One. “On the flip side, we wouldn’t be surprised to see this stock continue its move into uncharted territory in the coming weeks.”Jefferies echoed this sentiment, stating that “no news is great news”. Its report highlighted that the unchanged tobacco taxes are a big relief for ITC, allowing the company to focus on volumes with minimal price hikes.
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