ITC shares approach 52-week low, should you 'sell on rise'? 

Shares of ITC Ltd approached their 52-week low on Monday, falling for the fourth straight session. ITC shares traded below the Rs 400 mark for the second straight session today even as the broader market rallied on the first trading day of this week. However, in late morning deals, the FMCG stock rallied marginally to Rs 400 mark against the previous close of Rs 398.30 on BSE. Despite the minor pullback, ITC shares are oversold on charts, with their RSI slipping to 30 signalling more sellers than buyerrs for the Sensex stock. It trades below all its long-term and short-term moving averages, implying weakness in the FMCG sector's defensive bet. 

Amid the ongoing correction, the ITC stock approached its 52-week low of Rs 391.50 reached on March 3, 2025. The stock hit an intra day low of Rs 396.30 on BSE. Market cap of the firm stood at Rs 5.01 lakh crore today. 

Analysts are mostly bearish on the outlook of the stock with one of them expecting the stock to hit the Rs 350 mark in the short term. Here's what they said. 

Osho Krishan from Angel Broking said,"ITC has encountered resistance near the 200-DSMA and has subsequently declined, establishing a pattern characterized by lower lows and lower highs in the short term. The price range of Rs 400-390 constitutes a critical support zone, historically providing a buffer against declines, and is anticipated to maintain its role as a support level. Conversely, the range of Rs 416-420 represents a significant resistance threshold; only sustained buying activity at this level could mitigate the current sluggishness observed in the stock."

Ameya Ranadive, Chartered Market Technician, CFTe, Sr Technical Analyst, StoxBox says, "ITC has been under consistent pressure, trading within a downward-sloping channel and forming a sequence of lower highs and lower lows over the past year. Currently, no reversal signals are visible on the charts. Immediate support lies at Rs 390–Rs 380, and a decisive breakdown below this zone could trigger further selling pressure, potentially dragging the stock towards Rs 365–Rs 350 levels.  On the upside, a sustained close above Rs 405 on a weekly basis is essential to confirm strength and open the door for a recovery toward Rs 425–Rs 440 levels. Until then, caution is advised, as the trend remains firmly negative."

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. 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 remains 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.”

Drumil Vithlani, Technical Research Analyst at Bonanza says, "ITC continues to trade below a falling wedge formation, maintaining a pattern of lower highs and lower lows. The stock is currently positioned below the 20-day EMA, hovering near Rs 399, with immediate support seen at Rs 383.  The RSI at 31 signals weakness as it edges closer to the oversold zone, though the possibility of a shortterm technical rebound cannot be ruled out. He advises to sell on any pullback towards Rs 410–415 with a stop loss above Rs 425. He expects the stock to trade in a range of Rs 383 – Rs 375."

AR Ramachandran, SEBI registered Independent analyst says, "ITC stock price is slightly bullish & oversold on the Daily charts with strong support at Rs 396. A Daily close above the resistance of Rs 403 could lead to a target of Rs 421 in the near term."