Hold ITC, avoid averaging despite underperformance, says Ruchit Jain of MOFSL

Investors stuck in ITC at higher levels may need patience rather than panic. In a stock-specific recommendation on Business Today Television’s Daily Calls, market expert Ruchit Jain advised an investor holding 700 ITC shares at an average cost of Rs 320 to stay put for now, arguing that the stock’s weak price action does not justify either a loss-making exit or fresh averaging at current levels.

His core message was clear: hold the position, wait for a pullback, and reassess only if the stock recovers to better levels.

Underperformance remains the key concern

Jain described ITC as “a big underperforming stock,” underlining that the counter has failed to build meaningful momentum even when the broader market has shown resilience. That relative weakness is central to the current strategy call.

“The stock has not seen any momentum building up along with the market rise,” he said, effectively flagging that ITC has not participated convincingly in the wider market trend. For investors, that means the stock is not yet offering the kind of technical confirmation that would support aggressive buying.

Why the advice is to hold, not sell

Despite the sluggish chart structure, Jain stopped short of recommending an exit at a loss. “I would not recommend to exit and book losses,” he said, suggesting that investors should avoid locking in losses after an already meaningful correction.

That stance reflects a common tactical approach in weak but not decisively broken stocks: preserve the position, wait for a rebound window, and use strength—not distress—to make the next portfolio decision. In other words, the absence of momentum is a concern, but not yet a trigger for capitulation.

No fresh money for now

The sharper takeaway from the segment was on capital allocation. Jain explicitly cautioned against averaging down in ITC, saying, “Even I would not recommend averaging in this stock.” That is a notable signal for retail investors who often respond to price declines by adding more shares to reduce their acquisition cost.

In this case, the expert view is that averaging into an underperformer without visible momentum could trap more capital in a slow-moving position. Instead, investors are being advised to wait for “pullback moves” and review the stock at higher levels if such rallies emerge.