ITC shares slip below Rs 400 mark after hitting fresh all-time high; time to buy, sell or hold?

Shares of ITC Ltd touched their fresh all-time high level of Rs 402 in intraday deals on Tuesday before settling in the red. The stock today slipped 0.44 per cent to close at Rs 398.45 over its previous close of Rs 400.20. ITC has been reporting a solid set of numbers of late with growth across segments. There are hopes that the Kolkata-based company may continue with the trend this earnings season.

Inflation is cooling, said Ravi Singhal, CEO at GCL. "Palm oil prices have plummeted 50 per cent from their highs, so expect a healthy margin for ITC. The FMCG firm has gone shopping and is broadening its product portfolio, buying out Sprout Life Foods recently. Cigarette margin too is increasing. Technically, ITC has strong support near Rs 370 levels and resistance could be seen at Rs 419. Investors should buy on dips around Rs 385 to Rs 390 for a target of Rs 418 with a stop loss of Rs 375," Singhal stated.  

Manish Mishra, Virtual CFO, said ITC stock has gained over 20 per cent since the start of this year. He said this surge in the share price reflects the positive sentiment among investors, likely driven by the company's strong financial performance, growing demand for FMCG products in India, and favorable macroeconomic conditions.

"It also highlights ITC's position as a major player in the Indian FMCG market, with potential for further growth in the future," he further said.

AR Ramachandran from Tips2trades said, "The stock could move up to the next resistance of Rs 410 and even Rs 425 in the near term. These levels should be used by investors to book profits and wait for a dip near support levels of Rs 360 or Rs 329 in the lower range to initiate fresh buy positions for much better returns in the months ahead."

Manoj Dalmia, Founder and Director at Proficient Equities, said, "Recently, the stock price has given an upward breakout in a flag pattern with rising momentum. Investors should look for buying the dips."

A total of 3.74 lakh shares changed hands today on BSE, which was lower than the two-week average volume of 7.58 lakh shares. Turnover on the counter stood at Rs 14.95 crore, commanding a market capitalisaton (m-cap) of Rs 4,95,194.37 crore.

The stock traded higher than the 5-day, 20-, 50-, 100- and 200-day moving averages. The counter's 14-day relative strength index (RSI) came at 66.13. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 27.85. It has a price-to-book (P/B) value of 7.73.

ITC has an average target price of Rs 414.77, Trendlyne data showed, suggesting a potential upside of 4.08 per cent. The scrip has a one-year beta of 0.54, indicating low volatility.

Meanwhile, Indian equity indices extended their fall for the second straight session after a positive start. The domestic indices were pulled down today due to weakness in financials, consumer and energy stocks.

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