ITC shares hit five-month low, what analysts say on the ongoing correction
ITC share price today: ITC shares closed at Rs 398.30 , slipping 1.84% against the previous close of Rs 405.75 amid a weak market today.
- Aug 22, 2025,
- Updated Aug 22, 2025 5:24 PM IST
Shares of ITC fell below the Rs 400 mark for the first time in five months today, extending their losing run for the FMCG stock for the third straight day. The stock closed at Rs 398.30, slipping 1.84% against the previous close of Rs 405.75 amid a weak market today.
On March 4, 2025, the stock closed below the Rs 400 mark at Rs 394.85 on BSE. Since then, the Sensex stock had closed above the Rs 400 mark for over five months. The FMCG stock, which had been trading in a range since then is on the analysts' radar who expect it to lose more ground in the near term.
Here's what they said on the outlook of the stock.
KKunal V Parar, VP of Technical Research and Algo, Choice Broking said, "On the daily chart, the stock is trading below its 100-Day Moving Average, indicating continued weakness. Additionally, it has been moving within a falling channel pattern, reinforcing the bearish sentiment. On the weekly chart, the stock remains below its 21-Week Moving Average, adding to the negative outlook. The daily RSI is hovering around 38, below the neutral mark of 50, which further signals weak momentum in the counter. Given the above technical setup, we expect a further downside move towards Rs 390–Rs 375 levels, with a strict stop loss at Rs 420."
Shitij Gandhi, Sr. Research Analyst (Technicals), SMC Global Securities said, "From a technical standpoint, the short-term trend has weakened, as evidenced by the bearish crossover on the daily MACD indicator. This development reflects a waning of upside strength. Any sustained breakdown below Rs 405 could expose the stock to further downside risk, potentially dragging it towards Rs 398–Rs 395, which represents the next important support area on the charts."
Ravi Singh, SVP - Retail Research, Religare Broking said, "ITC continues to exhibit bearish trend on the weekly chart, as the stock is trading firmly within a well-defined descending channel. On the daily chart, 14-Day RSI is traded below the 40, indicating weakness in prices. The stock trades near its immediate support zone of Rs 400, which may attract a potential for a short-term rebound towards Rs 418- Rs 420 levels, aligned with a 50-day EMA line. However, the broader trend remained negative favouring sell-on-rise approach, until the price decisively breaks above the immediate resistance of Rs 430 and sustained above this level. On the downside, any fall below the immediate support level may trigger the downtrend towards Rs 380-Rs 390 in coming sessions.”
Om Mehra, Technical Research Analyst, SAMCO Securities said, "ITC continues to struggle in a prolonged corrective phase after failing to hold above the Rs 430–Rs 435 zone earlier this quarter. The volumes remain muted, with no signs of aggressive activity on either side. The Rs 405–Rs 398 zone has emerged as immediate support, where the stock has managed to arrest further declines in recent weeks. A breach below Rs 398 on a closing basis, however, could invite extended weakness toward Rs 386– Rs 380. On the upside, a sustained move above Rs 420 will be required to reclaim the 50-day SMA and improve near-term sentiment. A breakout above Rs 435 would be essential to confirm a reversal and open room toward Rs 455– Rs 470."
In the current session, market cap of the firm fell to Rs 4.98 lakh crore. The FMCG stock is trading below all its long term and short term simple moving averages, signaling sustained weakness and selling pressure across time durations.
In time periods till two years, the stock has delivered negative returns to shareholders.
Meanwhile, shareholders for three years are gettting returns of 34% and 113% in five years.
ITC reported a 5% rise in consolidated net profit for the June 2025 quarter. Net profit came at Rs 5343 crore in the June quarter against Rs 5092 in the corresponding period a year earlier. Revenue rose 20 per cent to Rs 23,007 crore in Q1 from Rs 19,239 crore in the June 2024 quarter.
EBITDA climbed 4.2% to Rs 6816 crore in Q1 against 6545 crore on a YOY basis. Q1 EBITDA margin came at 29.30% against 34.55% a year ago.
Shares of ITC fell below the Rs 400 mark for the first time in five months today, extending their losing run for the FMCG stock for the third straight day. The stock closed at Rs 398.30, slipping 1.84% against the previous close of Rs 405.75 amid a weak market today.
On March 4, 2025, the stock closed below the Rs 400 mark at Rs 394.85 on BSE. Since then, the Sensex stock had closed above the Rs 400 mark for over five months. The FMCG stock, which had been trading in a range since then is on the analysts' radar who expect it to lose more ground in the near term.
Here's what they said on the outlook of the stock.
KKunal V Parar, VP of Technical Research and Algo, Choice Broking said, "On the daily chart, the stock is trading below its 100-Day Moving Average, indicating continued weakness. Additionally, it has been moving within a falling channel pattern, reinforcing the bearish sentiment. On the weekly chart, the stock remains below its 21-Week Moving Average, adding to the negative outlook. The daily RSI is hovering around 38, below the neutral mark of 50, which further signals weak momentum in the counter. Given the above technical setup, we expect a further downside move towards Rs 390–Rs 375 levels, with a strict stop loss at Rs 420."
Shitij Gandhi, Sr. Research Analyst (Technicals), SMC Global Securities said, "From a technical standpoint, the short-term trend has weakened, as evidenced by the bearish crossover on the daily MACD indicator. This development reflects a waning of upside strength. Any sustained breakdown below Rs 405 could expose the stock to further downside risk, potentially dragging it towards Rs 398–Rs 395, which represents the next important support area on the charts."
Ravi Singh, SVP - Retail Research, Religare Broking said, "ITC continues to exhibit bearish trend on the weekly chart, as the stock is trading firmly within a well-defined descending channel. On the daily chart, 14-Day RSI is traded below the 40, indicating weakness in prices. The stock trades near its immediate support zone of Rs 400, which may attract a potential for a short-term rebound towards Rs 418- Rs 420 levels, aligned with a 50-day EMA line. However, the broader trend remained negative favouring sell-on-rise approach, until the price decisively breaks above the immediate resistance of Rs 430 and sustained above this level. On the downside, any fall below the immediate support level may trigger the downtrend towards Rs 380-Rs 390 in coming sessions.”
Om Mehra, Technical Research Analyst, SAMCO Securities said, "ITC continues to struggle in a prolonged corrective phase after failing to hold above the Rs 430–Rs 435 zone earlier this quarter. The volumes remain muted, with no signs of aggressive activity on either side. The Rs 405–Rs 398 zone has emerged as immediate support, where the stock has managed to arrest further declines in recent weeks. A breach below Rs 398 on a closing basis, however, could invite extended weakness toward Rs 386– Rs 380. On the upside, a sustained move above Rs 420 will be required to reclaim the 50-day SMA and improve near-term sentiment. A breakout above Rs 435 would be essential to confirm a reversal and open room toward Rs 455– Rs 470."
In the current session, market cap of the firm fell to Rs 4.98 lakh crore. The FMCG stock is trading below all its long term and short term simple moving averages, signaling sustained weakness and selling pressure across time durations.
In time periods till two years, the stock has delivered negative returns to shareholders.
Meanwhile, shareholders for three years are gettting returns of 34% and 113% in five years.
ITC reported a 5% rise in consolidated net profit for the June 2025 quarter. Net profit came at Rs 5343 crore in the June quarter against Rs 5092 in the corresponding period a year earlier. Revenue rose 20 per cent to Rs 23,007 crore in Q1 from Rs 19,239 crore in the June 2024 quarter.
EBITDA climbed 4.2% to Rs 6816 crore in Q1 against 6545 crore on a YOY basis. Q1 EBITDA margin came at 29.30% against 34.55% a year ago.