ITC stock hit a new 52-week high; will this rise continue?

On Tuesday, ITC shares went up by about 1% to reach Rs 466.05, and the company’s market value is currently around Rs 5.8 lakh crore.

During Tuesday’s trading, ITC stock reached a new all-time high. The big FMCG company has given investors very good returns because of its strong and steady performance, price movement, and high volumes.

On Tuesday, ITC’s stock went up about 1% to Rs 466.05, which was its 52-week high, before giving up its gains. On Monday, the price of the stock was Rs 462.95. ITC’s overall market value was around Rs 5.8 lakh crore, which made it the sixth biggest company on Dalal Street.

Five companies have a bigger market cap than ITC: Reliance Industries (RIL), Tata Consultancy Services (TCS), HDFC Bank, ICICI Bank, and Hindustan Unilever (HUL). ITC is outperformed in terms of market capitalization by businesses like Infosys, State Bank of India, Bharti Airtel, Bajaj Finance, and LIC of India.

The FMCG giant’s shares have gone up about 65% from their 52-week low of Rs 284.85, and they’ve gone up more than 200% from their Covid-19 lows. In the last year and a half, the price has gone up by more than 100%.

Analysts who look at technical charts think that ITC’s stock rise has more room to go. They think that buyers should buy the stock when it goes down because both technical indicators and fundamental measures show that the company is still doing well.

The price of the stock is going up, and it also hit a new all-time high. Riches Vanara, a Technical and Derivatives Analyst at Stoxbox, said that there is a clear negative divergence between the price and the momentum signal, which is the MACD and Relative strength chart for the Nifty-50.

“The derivatives data for July also shows that Rs 460 is a strong support level. So, he said, “we will be careful with the stock at its current price and wait for a pullback to levels of Rs 442-435 before buying more.”

VLA Ambala, a research analyst at Stock Market Today, said, “We had recommended ITC at Rs 440 for Rs 460, Rs 475, Rs 490, Rs 500, Rs 520, and Rs 550, and it went as high as Rs 466.” “It is a better investment bet in the equity space, based on how it has done in the past and what it does. One can keep it for more gains with a delayed stop loss at Rs. 420.”

This stock is getting close to its all-time high, and there are good reasons for that. First of all, it is a stable market and a good stock in terms of its finances and how it is run. On the other hand, it’s a good bet because it has a high dividend return. She also said that ITC’s price-to-earnings ratio of 29.70 times is less than the average for the sector.

ITC has been around since 1910, and it makes and sells more cigarettes than any other company in the country. ITC has many different types of businesses right now, such as FMCG, hotels, paperboards, paper and packaging, and farming business. The company had a dividend yield of 2.7%, a return on equity (ROE) of 29.1%, and a return on capital employed (ROCE) of 39.1%.

After a scary drop in March 2020, ITC’s quarterly charts have been on a dream run. Sujit Deodhar, the head technical analyst at Wellworth Share & Stock Broking, said that the stock is in its thirteenth quarter of rising since it fell and is headed for a goal of Rs 510. This can be seen from the fact that it is in its thirteenth quarter of rising since it fell.

“Investors who want to keep their long positions can use the Rs. 510 target as a chance to take some profit and try to buy the stock at a discount, as both time and price theory suggest that this stock needs a break for the next few quarters,” he said.



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