Shares of ITC surged more than 2 per cent during the early trading session on Tuesday. The cigarette maker has been luring investors after a robust return in the last one year. However, some analysts believe that the rally is not over in the stock. Shares of ITC gained over 2 per cent to Rs 446.25 on Tuesday, before giving up its gains partially, and the company commanded a total market capitalization of more than Rs 5.5 lakh crore. The scrip had settled at Rs 436.90 on Monday. Shares of ITC have surged about 70 per cent in the last one year, while the stock has yielded a return of 35 per cent in the year 2023 so far. The return of ITC has been astounding from its covid-19 lows at Rs 158.25 as the stock has surged more than 180 since then. Analysts decoding the technical charts remain bullish on the stock in the medium to the long run and suggest that the stock is likely to move higher once its races past its 52-week highs at Rs 452. They believe that Rs 500 is on the cards as the stocks gain momentum and if it continues, targets of Rs 520-550 are also possible on a positional basis. ITC on its quarterly charts has been on a dream run, post a panic fall in March 2020. It can be observed that the stock is in its thirteenth quarter of rise, post the fall and is heading for a target of Rs 510 levels, said Sujit Deodhar, Head Technical Analyst at Wellworth Share & Stock Broking.
Watch: IKIO Lighting IPO: GMP falls; share allotment today, here's how to check status online "Investors holding on to their long positions can use the target of Rs 510 as a partial profit booking opportunity and should try to add the stock at some discounted levels, as both time and price theory indicate that it’s time for this stock to take a breather for next few quarters," he said. Image: Chart-ITC In the month of May, ITC made a new all-time high at Rs 452 and today it is trading at Rs 443. This stock is in its bullish momentum and it could be held more with a trailing stop loss at Rs 410 for the targets of Rs 460, Rs 475, Rs 490, Rs 500, Rs 520 and Rs 550 in coming months, said VLA Ambala, a SEBI registered research analyst at Stock Market Today. "However, RSI at daily time frame is nearly 60 which is considered to be okay to enter in any fresh positions for above-mentioned targets with given stop loss," she said. ITC has witnessed a halt after the decent rise near Rs 452 zone where it has consolidated and with a slight dip seen has got the near-term support level near Rs 430 zone, said Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher. "Again, a decisive breach above Rs 452 levels would carry on the momentum still further ahead and can expect fresh targets of Rs 478-485 levels. The overall trend is maintained strong and only a decisive breach below Rs 415 levels would weaken the trend," she added.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)
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